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Tesla Insurance
- Thread starter Buckminster
- Start date
Martin Viecha
Okay. Thank you very much. And the next question on insurance. When do you plan on having your insurance service rolled out in all the states? International rollout timing? In markets that have Tesla insurance, what kind of uptake rates are you seeing?
Zachary Kirkhorn
Yes. We currently offer Tesla Insurance in 5 states in the U.S. Four of them are telematics, which is Texas, Illinois, Ohio and Arizona. And then California, which has a more standard insurance offering based upon regulations there.
Elon Musk
It should be clear, like we are pushing very hard for California to change the rules to allow informatics, which basically means that you're as safe as you're driving is measured. So, I think the current California rules are contrary to the best interest of the consumers in California and should be changed.
Zachary Kirkhorn
Yes. And that's evidenced by what we're seeing in Texas. We've been in this market now for about three months. And what we see in the data is the frequency of collision by folks who are -- who are given a feedback loop on how they are driving is quite a bit lower than the frequency of collision otherwise.
Elon Musk
Yes. And we get direct feedback on whether driving is safe. And if they drive safe, their insurance cost is less, so they drive safer. It encourages Tesla Insurance with informatics and real-time feedback encourages safer driving and rewards it monetarily. It's great.
Zachary Kirkhorn
Exactly. And so, we see that so far in Texas. Take rates have been quite strong. We measure this on the conversion rate from when folks quote to see what their monthly rate would be at the starting point to what percentage of them purchase. So, we're very encouraged by the interest that we're seeing in Texas.
And then we have enough history in Texas to see what does the loss ratios look like and how do the economics of the program work. And we're on the right track there as well. So, we're comfortable with what we've seen in Texas to move as quickly as the intent to scale this across the U.S.
Specifically on the question about when we will be in all states, this is a slow process because of insurance being regulated at the state level. And so we have to go through each of those processes with each of the departments of insurance in each state. But our internal goal here by the end of the year is to be in enough locations that 80% of our customers within the U.S. could choose to sign up for Tesla Insurance if they wanted to.
There's a lot of uncertainty around that based upon the regulatory processes, but that's our goal. And then, as we make more progress rolling out in the states and each incremental state becomes a little bit less effort than the prior, that's when we'll turn our attention to the Europe market. We might be able to do that by the end of the year, starting to get work on Europe by the end of the year. We'll have to see how we progress in the U.S.
Okay. Thank you very much. And the next question on insurance. When do you plan on having your insurance service rolled out in all the states? International rollout timing? In markets that have Tesla insurance, what kind of uptake rates are you seeing?
Zachary Kirkhorn
Yes. We currently offer Tesla Insurance in 5 states in the U.S. Four of them are telematics, which is Texas, Illinois, Ohio and Arizona. And then California, which has a more standard insurance offering based upon regulations there.
Elon Musk
It should be clear, like we are pushing very hard for California to change the rules to allow informatics, which basically means that you're as safe as you're driving is measured. So, I think the current California rules are contrary to the best interest of the consumers in California and should be changed.
Zachary Kirkhorn
Yes. And that's evidenced by what we're seeing in Texas. We've been in this market now for about three months. And what we see in the data is the frequency of collision by folks who are -- who are given a feedback loop on how they are driving is quite a bit lower than the frequency of collision otherwise.
Elon Musk
Yes. And we get direct feedback on whether driving is safe. And if they drive safe, their insurance cost is less, so they drive safer. It encourages Tesla Insurance with informatics and real-time feedback encourages safer driving and rewards it monetarily. It's great.
Zachary Kirkhorn
Exactly. And so, we see that so far in Texas. Take rates have been quite strong. We measure this on the conversion rate from when folks quote to see what their monthly rate would be at the starting point to what percentage of them purchase. So, we're very encouraged by the interest that we're seeing in Texas.
And then we have enough history in Texas to see what does the loss ratios look like and how do the economics of the program work. And we're on the right track there as well. So, we're comfortable with what we've seen in Texas to move as quickly as the intent to scale this across the U.S.
Specifically on the question about when we will be in all states, this is a slow process because of insurance being regulated at the state level. And so we have to go through each of those processes with each of the departments of insurance in each state. But our internal goal here by the end of the year is to be in enough locations that 80% of our customers within the U.S. could choose to sign up for Tesla Insurance if they wanted to.
There's a lot of uncertainty around that based upon the regulatory processes, but that's our goal. And then, as we make more progress rolling out in the states and each incremental state becomes a little bit less effort than the prior, that's when we'll turn our attention to the Europe market. We might be able to do that by the end of the year, starting to get work on Europe by the end of the year. We'll have to see how we progress in the U.S.
Is Tesla insurance the only insurance provider that loans Tesla cars during a repair or do other companies do the same?
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