Tesla has expanded its insurance program to Utah and Maryland, taking the total number of states where it is available to 11. Tesla initially launched its insurance program in California in 2019, claiming that it is up to 30 percent cheaper than competing providers. The service was expanded to Texas last year and has since been made available in several other states, including Arizona, Colorado, Illinois, Nevada, Ohio, Oregon, and Virginia. The insurance is based on real-time driving scores in most of the states except for California, where local regulations do not permit it.
While the in-house insurance was only available in one state for the best part of two years between 2019 and 2021, Elon Musk laid out ambitious plans for the service last year. Days ahead of the Tesla insurance launch in Texas, Musk announced that the company was aiming to make the product available across “most of the U.S.” before the end of 2022. The company, however, is unlikely to meet the goal this year, given that it is currently only available in a handful of states.
According to a Tesla insurance support page, the company’s in-house insurance service is now available in 11 states across the U.S. It covers over 130 million people, or about 39.5 percent of the total U.S. population. What’s more, the company is also reportedly prepping to add Georgia to the list of states in the coming months, according to a report by Teslarati. The publication says that Tesla started submitting paperwork to the Georgia Department of Insurance on July 22 for regulatory approval.
In an interview with Teslarati, Elon Musk laid out some of the difficulties in expanding the insurance program and why things have moved slowly over the past three years. According to Musk, getting approvals from every state is a time-consuming process, as there are lots of barriers to entry and the rules differ greatly from one state to another. “You have to jump through a lot of hoops in every state and those hoops take a long time to jump,” he said, referring to the different regulatory requirements in each state. He also said that Tesla eventually plans to expand to not only all U.S. states but also Canada and the rest of the world.
Tesla’s real-time insurance program considers metrics such as hard braking, aggressive turning, and forward collision warnings to calculate a real-time Safety Score for the drivers, which then determines their monthly premium. As mentioned previously, the system is unavailable in California due to regulatory restrictions, although Tesla drivers in the state can still see their real-time driving scores in the app if they opt in. However, Tesla says that it is only meant for “educational purposes” and it has no bearing on how the premium is calculated.