Tesla begins selling insurance to owners of its vehicles
SAN FRANCISCO (AP) — Tesla owners can now buy insurance policies from the electric car company in what may be an essential step toward it selling driverless vehicles.
The company says it’s now selling policies in California and will go nationwide at an undisclosed date.
CEO Elon Musk has said Telsa plans to put fully self-driving vehicles on the road next year. But traditional insurers may be reluctant to cover those robotic vehicles, leaving Tesla as the only option.
Tesla says its policies cost up to 20% less than other insurers because it knows its technology, safety and repair costs. The company says it won’t use or record individual driver data to price insurance.
But it will use data collected broadly from its safety systems to help set rates.