Elon Musk-led automotive and energy company Tesla is set to launch its own insurance product in about a month.

During the company’s earnings call, Musk said that the company is creating its own insurance product.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

“It will be much more compelling than anything else out there,” Musk said.

It is widely speculated that the company will leverage its Autopilot system to drive down policy costs for drivers.

Musk acknowledged that Tesla has “direct knowledge of the risk profile of customers based on the car.”

“If they (customers) want to buy a Tesla insurance, they would have to agree to not drive the car in a crazy way. Or they can, but then their insurance rates are higher,” Musk added.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

When asked about the safety of Autopilot, Musk said Tesla gives more details about safety to insurance companies.

“We do give some more detailed information to insurance companies to help with rates. And obviously as we launch our own insurance product next month, we will certainly incorporate that information into the insurance rates.”

However, Tesla did not reveal what data it shared with insurers or whether it would refer owners to Tesla-certified shops and require all new OEM parts.

In October 2017, Tesla partnered with Liberty Mutual Insurance to offer an auto-insurance plan tailored explicitly for its electric cars in the US.