Over the past half a decade or so, Tesla has emerged as one of the world’s most innovative companies, and its electric cars are now included among the most important advancements that have happened in the history of car manufacturing. However, the company is still trying to be consistently profitable, and in order to achieve that, it needs to create an ecosystem that supports electric car ownership in a big way. In a new development, Tesla has announced that it is now all set to roll out an insurance service and it is going to be wholly aimed at California for now. Considering the fact that California is the biggest market for Tesla’s electric cars, it does make a lot of sense to first introduce the service in that particular state.
The most important thing about the new insurance service is that the company is going to offer a much lower interest rate to car owners. Tesla has argued that since the security features of its electric vehicles are much lower, it makes sense for the company to offer insurance policies at much lower rates than what is charged by mainstream car insurance companies. It is a highly inspired business plan that has been devised by the company and could eventually prove to be a game-changer for Tesla in the long run. Over the years, the influential Chief Executive Officer of Tesla, Elon Musk, has often stated that the cost of car insurance should be lower since overall safety features in most cars have been considerably enhanced. Tesla’s own car insurance service will charge 20% less than the market rate. However, the company has not yet revealed the most important details with regards to its service and comparisons were not provided either.
However, it is the ultimate advantage for Tesla’s electric cars that need to be considered here. Over the years, traditional car insurance companies have often charged high insurance premiums for Tesla’s electric cars for a variety of reason, and the biggest one among those is the fact that repairs on these cars are quite expensive. Although Tesla has not yet revealed the name of an insurance partner, it needs to be kept in mind that the company can start its insurance service without anyone. According to information in the California Department of Insurance website, Tesla is a licensed broker and can carry on its insurance work for the State National Insurance Company.