Tesla Gets Into The Insurance Business

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Tesla is getting into the insurance business

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NEW YORK, NY - AUGUST 27: Tesla vehicles stand outside of a Brooklyn showroom and service center on August 27, 2018 in New York City.its long awaited and much anticipated insurance coverage of its vehicles in California. Insurance coverage of these luxury electric vehicles doesn't come cheap, and many companies won't even offer policies for them because of the. But Tesla says that it's able to leverage the advanced safety features that are standard equipment on their vehicles to offer rates that are up to 20% lower—and in some cases as a much as 30% lower—than comparable policies from other insurers.

It doesn't hurt that the company also oversees much of the mechanical repair process, and may be able to benefit from this end-to-end case management arrangement. Tesla often boasts of it vehicles safety record and design, and having earned the top NHTSA safety rating. However it's also one of the most expensive vehicles to insure. It's not clear if Tesla will have access to the vehicle's data, which contains driving history and other telemetry information not typically available to other insurers, during claim management.

 

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