Tesla is Jumping into the Car Insurance Business Overseas
This could make life a lot easier for Tesla owners if it takes off.by Robert Moore, on
In the past, it has been reported that insurers were having problems with listing the correct trim level of the Tesla Model S, ultimately leading to higher premiums for Model S owners. One of the bigger issues is the problem with the P60 using the same battery pack as the 75, with software used to limit it to 60 kWh. Since the P60 is obviously cheaper than the 75, consumers expect to pay less, but in the event of an accident, replacing the battery pack in a 60 cost’s just as much as in the 75. Well, this might not be a problem going forward, as Tesla is partnering with a couple of insurance companies in Hong Kong and Australia to provide a program called InsureMyTesla.
Partnering with AXA General Insurance in Hong Kong and QBE Insurance in Australia, Tesla is able to offer reasonable rates for the Model S and Model X. Coverage of these custom plans include new vehicle replacement within the first 36 months from the first registration and even coverage for things like Damage incurred to a Tesla Home Wall charger. Drivers will be able to pick from their choice of authorized Tesla repair facilities as well. Information on pricing at this point is pretty slim, but according to Electrek, Some Australian customers have reported plans starting at about $1,200 AUD per year or about $900 at current exchange rates.
For now, word has it that the new insurance program is only available in the two aforementioned countries, but if it is successful, it’s likely that it could make its way to the U.S. and Europe in the coming years.
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Why it Matters
Considering insurance can be difficult to deal with, especially when insurance companies tend to pick the wrong trim levels for a car like the Model S, it only makes sense that Tesla gets involved in one way or another. A program like this should ensure that all Tesla owners get a fair premium and the best coverage without all the crap associated with some insurance companies. If something like this kicks off for Tesla, I wouldn’t be surprised to see other automakers like Ford, Chevy, and Nissan to eventually offer their own in-house or partnered insurance programs in the future. We’ll be keeping our ears open on this story, so stay tuned for future updates.