General Insurance Article - Tesla to launch their own motor insurance


Following the news that Tesla is set to launch its own motor insurance, Mark Andrews, Director of General Insurance at financial services consultancy Altus comments

 “On the face of it, this could just be a fantastic piece of marketing by Tesla for the launch of their new insurance offering, especially as Elon Musk has a great reach via Twitter! However, the proof will be in the pudding when premiums are offered to customers – we’ve seen a couple of comments already that premiums quoted so far are 50% higher than Geico.

 “Given the autonomous technology in the car, coupled with the volume of data Tesla can collect about their drivers, there is no reason why they can’t offer these discounts though. With 90% of accidents caused by human error, Tesla’s technology will mean that very few of its cars will be involved in accidents where their drivers, and therefore Tesla, are liable.

 “Other vehicle manufacturers may take note, but I don’t predict any launching full-stack insurance products at this stage. They will continue to white-label traditional insurers products, but it’s unlikely that we’ll see any manufacturers taking on risk.”

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