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.
“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.
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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.