If you've had a Tesla for a few years then you probably remember what it was like getting an insurance quote for the vehicle.
Experiences vary, but it was not uncommon to come across insurers who would not insure a Tesla or who asked for an extremely high premium.
In fact, the problem was so big that Tesla decided to do something about it. They released their own car insurance division.
Tesla launched Tesla Insurance in 2019. Unfortunately, it was only offered in California at the time. Car insurance laws vary by state so Tesla needs to be approved in each state they want to do business in.
Tesla only expanded beyond California in the second half of 2021. In October Tesla expanded to Texas and last month Tesla added on Illinois.
Tesla is now expanding even further. As of today, Tesla is now offering car insurance in Arizona and Ohio as well.
In a tweet last year, Elon talked about the slow regulatory process for offering car insurance and mentioned that Tesla was looking to offer insurance in New York as well.
The regulatory process for approval to offer insurance is extremely slow & complex, varying considerably by state. Tesla is hoping to offer real-time (based on actual driving history) insurance in Texas next month. Probably next year before we get approval in New York.
-Elon Musk
Tesla determines your car insurance rate using their Safety Score algorithm, which is similar to Progressive's Snapshot rewards. Once you approve Tesla to collect driving data, they'll monitor your vehicle for harsh stops, fast turning, and following too closely.
Your insurance rate will then be based on your driving habits and your chances of getting into an accident.
Some drivers report having much lower rates with Tesla Insurance, while others report that their rate was lower with their current insurance company.
If Tesla offers insurance in your state, you may want to consider getting a quote directly on their site to see if you can lower your premium.
