Tesla is Now Selling its Own Insurance in California

Tesla has made a promise a reality.

It was back in April that electric vehicle giant Tesla announced in an earnings call that it would be launching its own auto insurance. The company is now offering this service to California customers.

According to Tesla, its offering may be as much as 30% less than other insurance plans, although it did not provide specific costs.

To begin, the insurance will only be available in California but Tesla said that it would “expand to additional U.S. states in the future.” The insurance can also be cancelled at any time.

It takes as little as a minute for customers in California to get a quote and those who have ordered cars can request for a quote with their vehicle identification number.

Warren Buffett, the Oracle of Omaha, has been vocally critical of the move and has said in the past that
the company would struggle in the industry.

“It’s not an easy business,” Buffett had said at the Berkshire Hathaway annual meeting.

“The success of the auto companies getting into the insurance business is probably as likely as the success of the insurance companies getting into the auto business.”

As Automotive News has reported, “While auto insurance rates vary greatly and depend on factors including age, location and driving history, Teslas have generally been more expensive to insure than competing vehicles because of their technology and parts costs.”

According to ValuePenguin, the average cost of insuring a Tesla vehicle in the US is an estimated range of $1,913 per year for a Model 3, to $2,963 per year for a Model S 90 D, its highest-end car.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.