Tesla Looks To Utilize Driving Data For Its Insurance Offerings

Insurance has been an issue that has plagued Tesla since its first car left the production line. The new technology has baffled many insurance companies, and with the high-profile nature of Tesla’s auto-drive functions many insurers have erred on the side of more expensive policies.

Since car insurance is essential in the United States, many potential Tesla owners found themselves priced out of purchasing a vehicle because of the high insurance costs. In an effort to combat this problem, the electric car company decided to start offering insurance directly to their customers. So far, that idea has been working out swimmingly.

Tesla is currently offering their insurance policies with the help of State National Insurance. Atlanta-based insurance executive Matt Edmonds, has been tapped to run the insurance full insurance division that Tesla is currently building.

Perhaps what is most interesting about the Tesla insurance model is that even with all the individualized data the company has at their fingertips, their insurance policies are still governed by aggregate anonymized data.

Edmonds spoke with Electrek about the company’s ambitions for their insurance offerings. He spoke about their hope to move from aggregate data to more individualized data, if the laws will allow for it. “The data is there, it’s all there, cameras in and all around your car, all of the data points are there. It really comes down to case law, and how much of the data we can utilize. It would have to be a state-by-state proposition,” said Edmonds.

While utilized individualized data my seem like a breach of privacy to some, many others are already jumping on board. Most major insurance companies allow their customers to opt in to a telematics program which offers discounts on auto insurance policies for safe drivers.

Since Tesla’s vehicles collect more data than any other, their insurance offerings could conceivably be the most individualized. That means safe drivers will pay less, while dangerous drivers will pay more. Personalized insurance policies are almost always a positive thing for the average law-abiding consumer.

Sources:

Tesla’s insurance program will use direct driver data where it can with permission, exec says

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