Tesla Insurance may soon be available in Texas
According to S&P, The Texas Department of Insurance approved a series of filings that indicate that Tesla Insurance may soon be available in Texas in partnership with Redpoint County Mutual Insurance.
Let’s go back, back to the beginning.
Tesla first ventured into insurance in 2016 with a program called InsureMyTesla in partnership with AXA in Hong Kong and with QBE in Australia. It expanded the program to the US in 2017 in partnership with Liberty Mutual. The experience wasn’t great and people weren’t all that impressed. “If Liberty wants to be the GO TO company for Tesla car insurance, then they darn well better provide the best product for the lowest price,” commented one user.
For the next year and a half, Tesla went numb on insurance, up until it announced a new Tesla Insurance program in California, the country’s largest green market that saw ~33k model 3s sold in the first half of 2019. The idea – “a competitively priced insurance offering designed to provide Tesla owners with up to 20% lower rates, and in some cases as much as 30%.”
And in the summer of last year (during the company’s Q3 earnings call), Elon Musk described this current version of insurance as 0.9, and CFO Zachary Kirkhorn went on to explain that the company is currently working on version 2, or the first version of its telematics product. “Obviously, insurance is substantial. So insurance could very well be 30%, 40% of the value of the car business, frankly. And as we’ve talked about before, with a much better feedback group, instead of being statistical, it can be specific.”
Well, this may be it.
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As a college student, Elon Reeve Musk pledged that he would make an impact on the Internet, on the environment, and in space. As a grown-up billionaire and the inspiration for Iron Man hero Tony Stark, he is now promising to build a major, revolutionary insurance company. And just as 'car people' were skeptical then, insurance people are skeptical now.