Tesla will launch its own brand of auto insurance in Texas this week, founder Elon Musk said during a Oct. 7 shareholders call addressing the company’s headquarters relocation from Silicon Valley to Austin, Texas.
In January the state insurance department approved a revised policy form submitted by Redpoint County Mutual Insurance Co. for a Tesla Insurance program for private passenger autos.
Based in Austin, Redpoint primarily writes private passenger automobile insurance through independent managing general agencies.
Redpoint will underwrite Tesla’s Texas insurance program, which will be distributed through the Tesla Insurance Services of Texas Inc. (Tesla), an MGA formerly known as Samson General Agency.
Musk called the regulatory process for gaining an insurance license “long and complicated.”
“You aren’t legally allowed to offer the same insurance in every state, so you have got to adjust the software to be difference (in) every state,” Musk told shareholders.
Tesla has offered auto insurance in California for Tesla vehicles since 2019. Musk said Tesla is seeking regulatory approval in California to add real-time insurance.
Musk said the company will “aspirationally” have Tesla Insurance in most of the country next year.
The Tesla Insurance website says it provides Tesla vehicle owners “with up to 20% lower rates, and in some cases, as much as 30%.” The company says its insurance covers physical damage, bodily injury and liability as well as additional financial protection against theft of the car, and damage to the car for events other than traffic collisions.
Tesla Insurance also offers an Autonomous Vehicle Protection Package. According to the insurance program’s website, it includes “Autonomous Vehicle Owner Liability, Wall Charger Coverage, Electronic Key Replacement, and covers Cyber Identity Fraud Expenses.”
Musk announced last week that Tesla will move its headquarters to Austin, where the electric car company is already building an automotive factory.
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