Tesla Now Heads Down New Road With Car Insurance in California :- Now, the Tesla owners in California can buy insurance from the electric car company. This might be considered to be the first step toward the unconventional automaker offering coverage for a fleet of driverless taxis.
Tesla Now Heads Down New Road With Car Insurance in California
The expansion declared on Wednesday and it comes four months after Tesla CEO Elon Musk told the analysts that the company is going to branch into insuring its own cars for the people who buy or lease them.
However, the insurance is only being sold in California to start, Tesla plans in order to offer coverage all over the U.S. at a later unrevealed state.
The policies are only going to be for personal usage of the Tesla cars, but on the other hand, the Palo Alto, California, company also wants to ultimately offer commercial policies.
Musk on the other hand believes that Tesla has learned so much about its cars that it is going to be able to provides rates 20% to 30% below those provided by traditional insurers.
This step is likely going to appeal to Tesla owners who have been complaining about being charged hefty amount for coverage.
This particular move Tesla may possibly have to take if Musk is to offer on his assurance to start selling Tesla vehicles that are able to navigate roads deprived of a driver behind the wheel within the following 16 months.
Other than that, the self-driving car experts believe that is doubtful to take place, but Musk has also assured to have a fleet of robotic Teslas functioning as part of a ride-hailing service by the end of following year.
In order to make this vision in a realism, the driverless cars are going to need commercial insurance that is rather no company but Tesla may possibly be willing to offer, given it perhaps will be discovering unexplored territory if it’s able to dispatch completely self-directed vehicles to pick up the passengers.
By selling the insurance, it is also going to offer Tesla with an additional source of revenue as it tries to demonstrate it can steadily make money. The company was also profitable for the duration of the last half of last year which is also considered to be the extensive stretch of prosperity in its history, but has lost an additional $1.1 billion for the duration of the first half of this year. On the other hand, those losses may possibly rise even greater if Tesla misjudges the risks of marketing auto insurance.