Tesla, like its quick commander Elon Musk, has a philosophy: It is smarter and better than everyone else, including other companies that are much larger and much older and much richer than Tesla . This is the spirit that Tesla Insurance originated in.
California Tesla owners were announced today, and can now sign up for an insurance plan for their car directly through Tesla.
The company claims its internal insurance can "provide Tesla car owners with up to 20 percent lower prices, and in some cases as much as 30 percent." It's quite vague language, and none of us at Jalopnik owns a Tesla in California, so we can't log in to the portal and get an offer, so we just have to warn you that Tesla's claims in the past have not always been level .
At least this is a great bet from Tesla that it knows better than all the car insurance companies that have been around for decades and calculates their prices based on data from millions to millions of cars.
In its FAQs, Tesla claims that it can offer lower prices because, although it has fewer cars to gain insight from, it knows more about them than other insurance companies:
Tesla uniquely understands its cars, technology , security and repair costs, and eliminates the loss of three additional insurance companies. By pricing guidelines to reflect Tesla's active safety and advanced driver assistance features, which come standard on all new Tesla vehicles, TeslaInsurance can also reduce insurance costs for many qualified owners. insurance companies have admitted that they do not have enough data to validate the car manufacturer's claims that the driver's assistance features lead to fewer or less harmful crashes. In fact, the most important pieces of information they usually don't have – whether the ADAS system kicked in before the crash or whether the ADAS system prevented one – are, at least in theory, insights that Tesla has least collected (Tesla says in frequently asked questions that they will not "use or record vehicle data, such as GPS or camera cameras when pricing insurance").
Given that car insurance is a low-margin business, offering discounts as steep as 20 percent, not to mention 30 percent, it's a big bet that their data is not just a little better, but much better. And there is a risky effort given to Tesla's current financial situation .
But hey, that's what makes Tesla Tesla right? Sometimes it pays off and it makes better electric cars than anyone else. Other times it doesn't, and the company goes through a year of hell in an unsuccessful attempt to automate a car factory. Only time will tell which side of the balance Tesla Insurance occupies.