The company best known for its electric cars is now stepping into the coverage side of the business.
Tesla auto insurance is now underway. The electric car company has now opened the doors to a new revenue stream. This has meant to give consumers more options when trying to find coverage for their electric vehicles.
Traditional insurance plans don’t always suit the needs for the complexities of all-electric cars.
The InsureMyTesla policy is meant to be a solution to this problem. Tesla auto insurance will be offered exclusively for covering vehicles from that automaker. The initial launch is directed only toward these vehicle owners in Hong Kong and Australia. Within both those countries, Tesla has entered into partnerships with larger auto insurance companies. They will be responsible for underwriting the policies. In Australia, it will be QBE Insurance underwriting the InsureMyTesla program. In Hong Kong, it will be AXA General Insurance.
The Tesla auto insurance is meant to fill the gap in conventional policies regarding certain specifics to EVs.
Owners of the automaker’s vehicles had previously found themselves stuck with policies covering trim and power levels that didn’t reflect their actual cars. This meant that some drivers were paying too much for greater levels than what they had, or were provided with inadequate coverage if the levels they paid for were too low.
Furthermore, the unique software-upgradable features of Tesla vehicles also don’t have a place within the standard templates for auto insurance. Many vehicles are sold with a battery that will operate at a lower level unless it is upgraded. The upgrade simply involves turning on a feature with the existing car battery which has a larger capacity than can be accessed without the upgrade.
This work well for drivers who want the choice between saving money or opting for a larger battery capacity. However, there is no way for a car insurer to know the upgrade has occurred. The same can be said about the autopilot system which can be turned on at any time through a software upgrade. The Tesla auto insurance, on the other hand, will take those types of upgrades and added features into account.