At first launch, the auto coverage will be available only in California and for the company’s customers.
The Tesla Insurance coverage for the company’s electric vehicles and that was first announced earlier this year has now launched in California. The idea is to make premiums 20 percent to 30 percent more affordable for drivers of Tesla’s electric cars.
Elon Musk first announced his intentions to launch the product back in April 2019.
At that time, Elon Musk had assumed that the Tesla Insurance product would launch quite quickly. That said, there were several unanticipated delays along the way to creating this electric vehicle insurance.
Interestingly, while Musk created the coverage to give electric vehicle drivers the opportunity to save a considerable amount on their auto insurance premiums, that doesn’t seem to be a universal result. At first launch, many customers took to Twitter to voice their complaints that the premiums they were quoted for this new coverage would be higher than what they were already paying with their auto insurers.
According to a Forbes report, this suggests that there may either have been “implementation problems or a certain degree of miscalculation.”
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Could Tesla Insurance turn the auto coverage industry on its head particularly for electric vehicles?
According to the Forbes report, there are many things to consider regarding the impact this new auto coverage could have on the industry as a whole. To start, it examined many different factors, including everything from the amount of capital required to guarantee coverage to the types of services an insurer must provide, such as customer support, repair networks, roadside assistance, and a great deal more. It pointed out that many of those services were already provided to Tesla owners by the automaker.
It also indicated that due to the nature of Tesla’s high participation throughout its entire production and service chain, even wdhen compared to other automakers, its presence in the insurance industry is different from what other car makers might experience.
The report indicated that if Telsa Insurance manages to create a valuable option within this highly competitive marketplace, and if it is able to broaden its offerings throughout the United States and into other countries, it has the potential to create some “major repercussions” with its strategic vertical integration movement. Whether or not it will be a game changer in the industry will take some time to be seen.