A class-action lawsuit has been filed against Tesla Insurance Services, alleging that the company overcharges for car insurance premiums. This accusation stems from the claim that Tesla bases premiums on “false” crash warnings rather than actual driving behavior.
Judge Brad Seligman of Alameda County Superior Court denied Tesla's request to dismiss the lawsuit, setting the stage for a detailed examination of Tesla's practices. While Tesla has denied any misleading conduct, the court’s decision to allow the case to proceed highlights the gravity of the allegations.
Safety Score Accuracy?
The plaintiff, Illinois resident Ricky Stephens, represents Tesla drivers from numerous states, including Arizona, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. This lawsuit, gaining traction under California's expansive unfair competition law, raises critical questions about the reliability and fairness of Tesla's insurance premium calculations.
The lawsuit, scheduled for an initial hearing in January 2024, seeks restitution, disgorgement of profits, and an injunction against alleged false advertising. The core issue lies in the “safety score” used by Tesla to determine insurance premiums. This score is affected by several factors, including hard braking, aggressive turning, and, notably, forward collision warning alerts.
Implications for Tesla and the Auto Insurance Industry
This lawsuit could have significant implications for Tesla and the broader auto insurance industry. The case highlights real-time data and algorithm-driven assessments in determining insurance premiums. Using vehicle data to calculate insurance rates, Tesla's innovative approach was seen as a game-changer. However, the current legal challenges suggest this technology might not be as flawless as initially perceived.
Several Tesla drivers have reported sporadic and random forward collision warnings, which adversely affect their safety scores and, consequently, their insurance premiums. This situation raises concerns about the accuracy of Tesla's vision system, which is still under development. If these collision warnings are indeed erroneous, as alleged, this could mean that customers are unfairly penalized with higher premiums based on inaccurate data.
Moreover, the case involving Tesla drivers who engaged in Track Mode on their EVs raises further questions about the insurance unit's algorithms. Reports of significant premium hikes after a single day of aggressive driving in controlled conditions challenge the fairness and transparency of Tesla's premium calculation methods.
Tesla's ongoing legal battle over its insurance practices is more than just a corporate dispute; it is a litmus test for the use of advanced technology in calculating insurance premiums. As the case progresses, it will be crucial to scrutinize the balance between innovative data use and the rights of consumers to fair and transparent insurance pricing. The outcome of this lawsuit could set a precedent for Tesla and the entire auto insurance industry as it grapples with integrating new technologies into traditional business models.
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Tesla has begun to reach out to customers in the United States and is offering demo drives of the Cybertruck on an invite-only basis. @brandonhd on X shared the first invite image, and it looks like it's going out quite quickly to multiple locations that have Cybertrucks on display.
Up until now, display vehicles have been for just that – looking, but no touching. Some Tesla delivery centers and showrooms have also allowed viewers to take a seat inside and open it up, but most are still locked away behind the velvet rope.
It’s exciting to see that Tesla has begun to demo them – and it can only be so long until demo drives open up to everyone.
Advisor-led Demo
This Demo Drive is led by a Tesla Advisor – while you’re driving, the advisor will be in the passenger seat, walking you through the experience. They’ll explain steer-by-wire, off-road controls, and will introduce new-to-Tesla buyers to all the features that are currently available.
The list of locations so far for demo drives appears to be fairly limited, but we will hopefully see demo drives roll out throughout the United States, and eventually Canada too. Here is the current list of city/state locations that have seen demo drive invites.
Actually Smart Summon, the successor to Tesla’s Smart Summon feature, has been confirmed to be coming as soon as next month as per Elon Musk. Colloquially known as “ASS”, Actually Smart Summon is supposed to improve on the regular Smart Summon capabilities, which have historically used ultrasonic sensors (USS) to navigate parking lots.
We’re looking forward to Actually Smart Summon, and we’re quite excited about what other features will be unlocked once it finally shows up at our doorstep.
Vision-based Improvements
ASS is supposed to bring Smart Summon to vehicles that don’t have USS – using Tesla Vision. Most recently, Tesla has brought Autopark to vehicles without USS, and Vision-based Autopark has been a huge success. It is faster, more reliable, and smoother than the older USS-based solution. It can also park and maneuver in tighter locations.
Today, Smart Summon is sometimes useful at best, usually a party trick, or downright dangerous at worst. It’s excellent and best used in straight lines, where you have a clear line of sight of the vehicle, and can stop it if doesn’t see an obstacle.
I used Smart Summon today, just before writing this article – my 2022 Model Y (with USS) – did manage to show up just fine – in a straight-line location from where I was parked, after exiting the parking spot fairly cleanly. However, I’ve previously used Smart Summon and have had the vehicle turn towards obstacles, such as cart returns or curbs. Overall, it’s a sometimes-useful feature that has a lot of drawbacks right now.
Smart Summon is also restricted to a certain distance – and it's pretty small. The max distance is shorter than most parking lots, being only about 215 ft (65m). If you’re lucky enough to park close, it's very useful to bring your car right to you.
Actually Smart Summon
ASS will bring FSD V12-like capabilities to Smart Summon – the vehicle will primarily use Vision to drive toward you (or the location you’ve indicated). ASS has been supposed to be coming since about September 2022 and has seen many delays – we’re almost at the 2-year point today.
We’re looking forward to Actually Smart Summon being able to bring the vehicle – safely – right to you. ASS is also one of the key steps towards bringing some other cool features that Elon Musk has previously mentioned – Park Seek and Banish Autopark.
We’re also hopeful that Actually Smart Summon will increase the maximum range a vehicle can be summoned, because the current range is fairly small. Alongside Park Seek and Banish Autopark, we’re closing in on a Robotaxi-based future.
Park Seek and Banish Autopark
When the FSD v12.4 showed up, Elon also mentioned that going forward, vehicles would automatically park themselves when arriving in a parking lot – Park Seek – and that if you got out of the car at the entrance to a business, you could get it to automatically park itself in the parking lot – Banish Autopark. These are two features that are needed for Robotaxi to work – which itself is delayed to October 10th of this year. We’re looking quite forward to them – as in combination with Actually Smart Summon, Tesla has reached the cusp of vehicle autonomy.
A vehicle that arrives, driverless, at the location you’re at, then drives somewhere, parks itself there, and waits for you – is the definition of a Robotaxi.
While we’re likely to have to wait for Banish Autopark and Park Seek just a bit longer, Actually Smart Summon being around the corner is exciting! Gone will be the days of having to run out to your car when you forgot your umbrella – your car will just come right to you instead.
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Tesla Android Project enables you to run Android apps in your Tesla. The platform is Open Source and you can deploy it on your own Raspberry Pi 4. Consider supporting the initiative by donating or purchasing the Compute Module 4 Bundle that delivers the best experience. Get $20 off by using the code: NotATeslaApp
The official Tesla app only notifies you if your car is broken into. By installing Sentry Pro on your phone, you will be notified for all Sentry Mode events. Stay connected and avoid potential surprises by receiving notifications. Stop constantly checking the cameras to ensure safety. Check only when necessary, save battery and get peace of mind. Get a 7 day free trial here!
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