Tesla Sets the Foundation for Insurance Product

Tesla CEO Elon Musk provided the cursory outline for an insurance program that will launch in about a month. The new product will be based on driver behaviour, improving underwriting and potentially saving Tesla owners money. “It will be much more compelling than anything else out there,” said Musk.

Tesla has already been giving detailed information from its vehicles to insurance companies to help with rates. Such a program may prove crucial for Tesla’s Full Self-Driving capability, outlined earlier this week. This would allow owners to use their vehicles to generate income as part of a Tesla ride-hailing service without a need for the owner to be present. “We believe we’ll have the most profitable taxi on the market,” said Musk.

A fleet of autonomous taxis would be an entirely new proposition. Insuring said fleet would also be completely new. Tesla is setting the foundation to be the insurer of choice for its customers and their potential transport business.