Tesla insurance offered in five states, with real-time behavior affecting rates in all but California

Tesla insurance is currently available in five states, with rates based on real-time analysis of driving behavior in four of them.

The expansion to Arizona and Ohio was first reported by Electrek Thursday. It was also previously available in California, Illinois, and Texas.

Tesla’s website notes that real-time driving behavior-based insurance is available in Arizona, Illinois, Ohio and Texas, but not California, possibly due to legal issues. Tesla says drivers with “average” safety scores will save 20% to 40% on insurance premiums compared to other insurance products, while the safest drivers can save from 30% to 60%, Electrek reported.

2021 Tesla Model Y IIHS crash test

Tesla insurance is slow to roll out. It was originally revealed in 2019 and promised to offer lower-cost coverage to mirror Tesla’s driver-assistance features. However, it didn’t add real-time driving behavior to the show until last fall. It was Initially only offered in California.

Tesla isn’t the only automaker to roll out insurance products for its vehicles. Porsche has experimented with Private program for Taycan owners, but that was initially offered to residents of Illinois and Oregon only. Rivian has announced an insurance program in 2021, says it will be offered in 40 states. Like Tesla, Rivian said it will offer discounts to customers who agree to have the company monitor their driving behavior.

Why is this? Claim frequency varies widely for EVs – although in some respects predictable difference. Some of the differences may be due to the fact that early electric vehicles, like the Smart Fortwo Electric Drive, were primarily aimed at averaging urban driving at low speeds. Let’s hope that by now the insurance establishment is catching up and can adjust policies accordingly.