Tesla, the very famous electric car company, has announced that it will be providing car insurance now, with a catch. The insurance policy is only applicable for Tesla owners, while the company quotes “competitively priced insurance offering designed to provide Tesla owners with up to 20 percent lower rates, and in some cases as much as 30 percent.”
Musk claimed that Tesla could offer such discounts because of the data each car produces. Not only that but also having safety features such as Autopilot also contribute to a lower cost.
The program will have a soft launch in California and then will expand to more users soon. However, no exact or projected timing was given for this. Tesla did mention that no prior car records would come into play when pricing the insurance for an individual user.
Tesla’s new step to increase profit margins on its product is exciting, as it could benefit both parties. The Model S was ranked as the most expensive vehicle to insure in 2018, and with Tesla’s help that can be changed shortly.