Tesla is rapidly expanding their insurance offering
Not a Tesla App
Tesla Insurance is a competitively priced insurance product that offers Tesla owners a new option.
Tesla has a unique understanding of its vehicles, technology, safety features and repair costs, which help eliminate some fees associated with traditional insurance carriers. Tesla Insurance provides a convenient monthly payment and the ability to manage claims and coverage directly through the Tesla app.
It also puts you in control, since your insurance premium is in part based on your driving habits.
Where is Tesla Insurance Available?
The service is currently only available in select U.S. states, but it continues to expand to additional states. Tesla CEO, Elon Musk says it will also expand to Canada in the future.
Tesla Insurance is currently available to Tesla owners in the following states:
Arizona
California
Colorado
Illinois
Minnesota
Maryland
Nevada
Ohio
Oregon
Texas
Utah
Virginia
Who Can Purchase Tesla Insurance?
New and current Tesla owners can purchase an insurance policy in the Tesla app by tapping the profile icon located in the top-right corner and selecting ‘Get Tesla Insurance.’
If you've recently placed an order for a Tesla, you will need to wait until a VIN is assigned before ordering Tesla Insurance.
Tesla is rapidly expanding their insurance offering
Not a Tesla App
Additional Vehicles
Tesla Insurance will not only cover Tesla vehicles but also any other vehicles you may own.
You can add additional vehicles when submitting the policy.
However, Tesla Insurance is currently limited to vehicles and Tesla does not offer home insurance or other types of insurance policies.
What You Get with Tesla Insurance
With Tesla Insurance you can view documents, billing, payment details and make claims all from the Tesla app.
Like other insurance companies, there are a variety of plans with varying levels of coverage depending on your needs.
How Does Tesla Insurance Work?
Tesla collects data from the vehicle that helps assess how the vehicle is being driven.
Unlike other insurance products, Tesla does not require an additional device to be installed in the vehicle. Instead, Tesla uses features already included to determine how often the vehicle is driven, and how often the driver follows too closely or stops harshly.
This data is then used to help determine the driver's insurance premium.
The insurance premium also factors in the vehicle model, the insuree's location, and the distance the vehicle is driven.
Tesla Insurance users make monthly payments based on their driving behavior rather than factors typically used by other insurance providers, such as credit, age, gender, claim history and driving records.
Tesla Insurance Cost
Every insurer has different factors to determine their costs and their customers' likelihood of getting into an accident. While Tesla Insurance could save you money, it could also cost more than alternatives available in your state.
According to Tesla, "An average driver could save between 20% to 40% and the safest drivers could save between 30% to 60%."
Your Safety Score can have a large impact on your insurance premium
@GailAlfarATX/Twitter
Big reason to own a Tesla in the states where they offer insurance. next month insurance will be $60/month, down from 88 because of a 98 safety score maintained. Best car ever @elonmuskpic.twitter.com/fROEsx3Wfa
We've seen scenarios where Tesla Insurance saves someone hundreds of dollars a month, but we've also seen it cost significantly more than its competitors.
There are many factors that determine your insurance premium. If you're new to Tesla or haven't shopped around in a few years, we recommend getting a free quote from Tesla to see whether Tesla Insurance would save you money.
Tesla insurance price is insanely low. Six cars covered with two Plaids and includes my brother in the coverage for $599 per month! 9K miles/car $500 comp, $1k collision. Progressive wanted over $1k/month ??♂️ @elonmuskpic.twitter.com/rAWDjoxJi8
There has been extensive reporting on what the long-anticipated affordable EV option would become, and we’ve seen numerous news stories mentioning that it was delayed or even arriving on time. The executive team revealed the near-term and long-term plans for Tesla’s upcoming vehicles, and there’s definitely good news to share here.
Updated Timeline
The most important piece of news is that despite all the talk of delays from supposed inside sources, Tesla has confirmed that the plan for its more affordable model remains on schedule for production to begin in the first half of 2025. Tesla’s executive team narrowed that timeline down further - and said that they expect production to kick off as soon as June and that the new model will be in the market shortly thereafter.
While the production timeline itself is on track, Tesla did note that the subsequent ramping process will likely be slower than initially hoped, citing global tariff and financial impacts as challenges to overcome to prepare its production lines.
Hybrid Production Approach
Tesla has once again confirmed that this will not be their next-generation vehicle, built using new production methods. Instead, they outlined a relatively more pragmatic approach for this new model.
Tesla will utilize aspects of both the next-generation platform as well as some parts of its current platforms (namely the Model 3 and Model Y). This means that Tesla will produce this new vehicle on the same manufacturing lines as the Model 3 and Model Y.
This strategy allows Tesla to bring the vehicle to the market more quickly, while also managing capital expenditures more efficiently by using existing infrastructure. However, Tesla’s executive team also noted that this approach, while faster, will result in fewer cost reductions than what might have been achieved with an entirely new platform and dedicated manufacturing process.
Vehicle Design
Using these existing production lines means that Tesla’s new vehicle will likely share some considerable similarities with either the existing Model 3 or Model Y. Rather than being a radically different and smaller vehicle, this new model will resemble the overall form factor and shape of Tesla’s current core offerings, while being optimized for a lower cost.
This doesn’t mean that Tesla is forgetting the overall goal here. Their ultimate goal is to reduce the initial cost of ownership and lower monthly payments for customers while maintaining a standard of excellence and safety.
Not Unboxed
Both at this Earnings Call and previous ones, Tesla has indicated that this new vehicle will not be using the innovative unboxed assembly method, at least for the time being. That relatively unique method will be developed and implemented specifically for the purpose-built Cybercab and for future vehicles on the next-generation platform.
We’re just a few days away from May, so it won’t be long before we see more about this upcoming vehicle. Stay tuned.
In a follow-up move to the current US administration’s goals to introduce a federal framework for autonomous vehicles, the US Department of Transportation (USDOT) is loosening autonomy restrictions following an announcement from Secretary Sean Duffy on X. This new initiative helps streamline complex regulatory processes and foster home-grown innovation.
From the Wright Brothers to the first astronauts on the moon, our nation has always been at the forefront of transportation technology.
That’s why today we're unveiling a new Automated Vehicle Framework from @USDOT’s Innovation Agenda ⬇️ ⬇️ pic.twitter.com/W3kbMUwQSn
As part of the broader upcoming USDOT Innovation Agenda, the newly unveiled AV Framework is designed to promote American innovation and strengthen domestic engineering while maintaining existing safety standards. The framework centers around three key principles:
Prioritize Safety
Unleash Innovation
Enable Commercial Deployment
To kickstart this AV framework, USDOT announced two initial steps focused on streamlining processes and expanding opportunities.
Crash Reporting Requirements
Under the first principle to Prioritize Safety, the National Highway Traffic and Safety Administration (NHTSA) will maintain its Standing General Order requiring crash reporting on Advanced and Automated Driver Assistance Systems (ADAS and ADS).
However, the reporting process will be streamlined following feedback from AV innovators, likely including Tesla. The goal here is to focus on collecting critical safety information while removing unnecessary or duplicative items from the reporting process, thereby reducing the burden without compromising safety.
Cutting Red Tape
Directly tied to the second principle of Unleash Innovation, the framework also seeks to slash red tape. The first step here is the expansion of the Automated Vehicle Exemption Program, or AVEP. This program allows manufacturers to petition for temporary exemptions from certain federal motor vehicle safety standards (FMVSS) for testing or deployment purposes.
Previously, the standard excluded domestically produced vehicles. Now, domestically produced AVs will not need to meet FMVSS, which will broaden the scope for manufacturers to test more innovative and unique designs and technologies.
Single National Standard for AVs
Finally, tied to the third principle of Enable Commerical Development, USDOT intends to move the United States closer to a single national standard for autonomous vehicles. This aims to prevent a confusing and inefficient patchwork of state-level or city-level laws and regulations, which can create hurdles for companies attempting to innovate, deploy, and scale their technology.
A unified standard across the United States also means that Canada and Mexico will likely be able to follow, as they share homologization standards across North America, including for vehicle crash safety and some autonomy regulations.
What This Means for Tesla
These framework changes will likely have a substantial impact on Tesla. The move towards a national standard is potentially the most impactful change, as Tesla identified regulatory hurdles as one of the most significant challenges it will face with the deployment of both Unsupervised FSD and its Robotaxi network.
The reduction of FMVSS requirements and streamlined reporting will likely play a role in the future as well. The FMVSS requirements are probably already being worked on, if not already met, by the Cybercab and other vehicles in Tesla’s lineup.
Meanwhile, the streamlined reporting will be helpful once Tesla officially launches its Robotaxi network in June.
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