Tesla Inc. (NASDAQ:TSLA) has launched its Tesla Insurance, which will provide cover for tesla car owners in California. The company has indicated that the insurance cover will save car owners up to 30% in premiums relative to other insurance firms.

Tesla to offer insurance for its luxury cars

The latest Tesla product sets the company up to offer end-to-end vehicle purchase, fuelling, services as well as insurance services. The company wants to integrate services as it works towards the unveiling of the Tesla Network.

The insurance cover will be available for all car owners of Model 3, Model X, and Model S. the advantage with the insurance services is that Tesla knows the vehicles inside out. This means that it can leverage the advanced technology, serviceability, and safety of the cars to offer low-cost cover. The pricing of the Tesla insurances also takes into consideration the generous collection of safety features in the cars.

The company currently has a monthly payment plan for the insurance, but the car owner will be able to change or cancel the policy any time. Those ordering new vehicles have the option of requesting a quote for the same before taking their delivery. It could even be easier to take the cover because already Tesla has details of car owners. 

Tesla insurance to speed up repairs

Tesla Insurance will be available initially to California customer who will receive comprehensive coverage and claims management support. The rest of the states shall be added after Tesla works initial setbacks out of the system via customers in California. With Tesla Insurance, customers will now be able to get their cars repaired faster after an accident.

This is seen as an incentive to customers to get them back to their vehicles as soon as possible following an accident. Cost of insurance will vary depending on the driver’s record among other factors that affect individual insurance rates. The company has, however, indicated that it would not use driver data such as vehicle camera footage and GPS in p[pricing the policies.