Tesla Auto Insurance Expands To Texas This Week
Tesla will be launching its own brand of auto insurance in Texas this week, founder Elon Musk said in a call to shareholders on Oct. 7 regarding the company’s relocation from Silicon Valley to Austin, Texas.
In January, the state’s insurance department approved a revised policy form submitted by Redpoint County Mutual Insurance Co. for a Tesla insurance program for passenger cars.
Austin-based Redpoint primarily underwrites private auto insurance through independent general management agencies.
Redpoint will underwrite Tesla’s Texas Insurance Program, which will be distributed through Tesla Insurance Services of Texas Inc. (Tesla), an MGA formerly known as the Samson General Agency.
Musk called the regulatory process for obtaining an insurance license “long and complicated.”
“You aren’t legally allowed to offer the same insurance in every state, so you have to adjust the software to be different (in) every state,” Musk told shareholders.
Tesla has offered auto insurance in California for Tesla vehicles since 2019. Musk said Tesla is seeking regulatory approval in California to add real-time insurance.
Musk said the company will have Tesla Insurance “roughly” across most of the country next year.
The Tesla Insurance website says it offers Tesla vehicle owners “rates up to 20% lower, and in some cases up to 30%.” The company says its insurance covers physical damage, bodily injury and third party liability, as well as additional financial protection against the theft of the car and damage to the car for events other than traffic collisions.
Tesla Insurance also offers an autonomous vehicle protection package. According to the insurance program’s website, it includes “self-driving vehicle owner’s liability, wall charger coverage, dongle replacement and covers expenses related to cyber identity fraud.”
Musk announced last week that Tesla would be moving its headquarters to Austin, where the electric car maker is already building an auto plant.
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