Tesla’s steadily expanding insurance program has launched in yet another U.S. state – Minnesota. This marks the first expansion of Tesla Insurance since it debuted in Arizona exactly one year ago.
The company is taking a slow and steady approach with rolling out its unique insurance product state-by-state. Tesla Insurance aims to leverage the advanced driver assistance features and safety of Tesla vehicles, as well as real-time data, to provide lower insurance costs to Tesla drivers.
With the addition of Minnesota, Tesla Insurance is now available in a total of 12 states across the country. The full list includes Arizona, California, Colorado, Illinois, Maryland, Minnesota, Ohio, Oregon, Texas, Utah, Virginia, and Washington.
Collectively, the current states where Tesla Insurance is offered represent around 40.9% of the total U.S. population, or approximately 136 million people. This represents a significant footprint for the relatively new insurance offering.
Tesla Insurance provides comprehensive coverage and end-to-end claims management for eligible vehicles. Policies can be customized based on a driver’s unique risk profile and the advanced safety features of their Tesla vehicle.
Since Tesla produces both the cars and the insurance, it has a better understanding of the technology, repair costs, and safety data compared to traditional insurance carriers, allows Tesla Insurance to eliminate the usual commissions and fees, passing the savings along to Tesla drivers through lower rates.
The insurance product has gradually expanded to more states since first launching. Tesla piloted its insurance program in California before going wider over the past three years. The slow state-by-state expansion has allowed Tesla Insurance to refine its offering, pricing models, and operations.
Next up on the list for expansion could be major EV markets like Florida, New York, New Jersey, and Pennsylvania. But Tesla will likely continue its cautious approach, not rushing to roll out nationally before thoroughly testing in each new state.
Tesla owners in states where insurance isn’t yet available can still benefit from Tesla’s repair-centric focus. All Tesla repair shops use genuine replacement parts, offer lifetime warranty on repairs, and work closely with Tesla engineers, helps lower repair costs by an average of 30-50% compared to other body shops.
As Tesla Insurance reaches more states and expands its dataset, the product should become even more competitive. Tesla is uniquely positioned to leverage real-time, aggregated data from its large and growing fleet of vehicles on the road. The granular view of actual driving behavior, advanced safety features, and repair costs will allow Tesla Insurance to refine risk assessments in a way legacy insurers simply can’t match.