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Tesla starts offering insurance in Texas, based on real-time driving behavior

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Tesla has finally launched its official insurance program in the state of Texas. The first report of Tesla Insurance coming to Texas came back in February this year. It has taken the electric automaker about 7 more months of preparation to launch the product in the state where it’s building the next American Gigafactory.

The new and interesting point in this insurance package launch is that Tesla is offering insurance rates based on real-time driving behavior. “Get competitive rates in California and Texas in as little as one minute. Insurance based on real-time driving behavior now available in Texas,” the Tesla Insurance website states.

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Tesla is most probably referring to the recently introduced “Safety Score” by real-time driving behavior. Tesla owners can check their Safety Score using the Tesla mobile app installed on their phones (version 4.1.0 or above).

However, Tesla owners who have checked the insurance quotes from Tesla are reporting that the rates Tesla is offering at the moment are higher than their existing insurance providers.

Some of the r/TeslaMotors subreddit users reported the following Tesla Texas Insurance rates:

Current Progressive Policy: 2021 Model Y and 2017 Toyota Highlander – $171/mo

Tesla Quote: 2021 Model Y only – $181/mo

2021 Model Y and 2017 Toyota Highlander – $299/mo

I think I’ll pass…

edit: no accidents for either my wife or I in the past 15 years

u/paurac on Reddit

“Similar for me, my quote for only my Plaid ($200 / month) was more than my current State Farm policy that includes a second car ($170 / month),” said u/brandonagr on Reddit.

But for u/supra12 said that the Tesla Insurance rates for his Model 3 Standard Range Plus were lower than his current provider Geico. The real-time driving behavior and car model might be affecting the rates quoted by Tesla because as the years are passing, Tesla is making its vehicles safer and safer.

Tesla Insurance was way better for me. ’21 Model 3 SR+

Current: Geico – $680/6mo, 100/300/100, $1000 ded

New: Tesla – $501/6mo, 100/300/100, $500 ded

u/supra12 on Reddit

The official support website for Tesla Insurance states the following about the program’s competitive pricing and deeper understanding of Tesa vehicles:

Tesla Insurance is a competitively priced insurance product, offering comprehensive coverage and claim management for Tesla owners in California and Texas and will expand to additional U.S. states in the future.

Tesla uniquely understands its vehicles, technology, safety and repair costs, eliminating traditional insurance carriers’ additional charges. Tesla Insurance provides a convenient monthly payment and reflects Tesla’s active safety and advanced driver assistance features which come standard on all new Tesla vehicles.

Tesla Insurance support website (read the important FAQs before signing up)

A Reddit user and Tesla owner shared the following screenshot of the insurance quote Tesla sent him. The quotes are based on the Safety Score that Tesla determines based on driving behavior.

Tesla has devised a formula for calculating the insurance premium for Tesla owners. “A default Safety Score of 90 is used to calculate the premium for your first two months,” says Tesla in its quote.

This means irrespective of your Safety Score above 90, Tesla will use the default score of 90 for the first two months. After two months, the premium rates will vary based on the Safety Score. If the Score is 90 and below 100, the premium will be $89.16/mo. If an owner maintains a score of 100 the premium will drop to $53.9/mo.

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The premium rates might change based on the car model and year of manufacturing with other variable factors. It is best to ask Tesla for your specific premium quotation.

Tesla Insurance premium rates based on the Safety Score (driving behavior). Credits: u/Error__Loading via Teslamootrs subreddit.

Tesla is amplifying its presence in the state as the automaker moved its headquarters to Texas earlier this month in addition to the Gigafactory Texas that is on the verge of starting Model Y production.

Tesla CEO Elon Musk had already relocated to Texas last year to look over the SpaceX Starship program and the Cybertruck and Model Y production at Giga Texas.

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By Iqtidar Ali

Iqtidar has been writing about Tesla, Elon Musk, and EVs for more than 3 years on XAutoWorld.com, many of his articles have been republished on CleanTechnica and InsideEVs, maintains a healthy relationship with the Tesla community across the Social Media sphere. You can reach him on Twitter @IqtidarAlii

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