A look at Tesla’s insurance growth
How fast is Tesla Insurance growing?
At the end of 2022, Tesla’s insurance offering was available in 12 states. In some states, coverage is being offered by Tesla, which acquired insurance carrier Balboa Insurance Company in January 2022, along with its wholly owned subsidiaries Newport Insurance Company and Meritplan Insurance Company. In other states where insurance became available prior to this acquisition, Tesla Insurance programs are being supported by State National (CA, IL, AZ, OH) and Redpoint County Mutual Insurance (TX).
In the table below, we calculated the 2022 direct premiums written for each state where data was available (Texas was the only state where insurance was available for the full year since the program launched in late 2021).
|State||2022 DPW||Active Days (Est.)||DPW Per Day|
Naturally, the growth of Tesla’s insurance depends on auto sales, and some states adopt EVs more quickly than others. According to a recent analysis from S&P Global Mobility, the top-eight EV markets in the US are all in coastal states, representing 50.5% of total EV registrations in 2022.
On the other hand, the following 22 states, which accounted for 27.1% of total US vehicle retail sales through August, represented only 15.5% of EV registrations in 2022.
Overall, the top three EV-friendly states are California, Florida, and Texas based on June 2022 data.
While Texas leads the way in terms of 2022 DPW per day, California is the clear winner judging by older data. In 2021, State National reported that Tesla Insurance Services produced ~$112 million in direct premiums written. For the majority of that year, Tesla’s insurance program was only available in California (coverage became available in Illinois on December 16, 2021). If we calculate the 2021 figure and attribute it all to California, then Tesla produced $306,849 in DPW per day in the state.
Overall, Tesla generated ~$255 million in direct premiums written in 2022 across 12 states.