Tesla works with insurers to keep premiums down

US car manufacturer Tesla is teaming up with insurers to ensure the safety features of its vehicles are reflected in the price of their insurance premiums.

Tesla has partnered with insurers from 20 countries through a scheme called ‘Insure My Tesla’ in order to provide Tesla owners with an insurance premium that accounts for the significant safety advances in their vehicles.

Tesla is at the forefront of technological advances, with one of the most revolutionary being its autopilot feature. Through the use of ultrasonic sensors and cameras which provide a 360-degree view of the car’s surroundings, Tesla vehicles are able to match the speed of the surrounding traffic conditions, keep within a lane, change lanes automatically, exit a motorway when required, and even park themselves, all without the need for input from the driver.

GlobalData financial analyst Daniel Pearce said: “Clearly the exponential advances in this technology have made driving much safer, as the potential for driver error is removed from the situation once the Tesla autopilot is engaged. Crash rates across all Tesla models have fallen by 40% since the introduction of the autopilot system, illustrating how this technology has significantly improved the safety of driving. However, when owners seek to insure their Tesla vehicles, this is not reflected in the pricing of premiums.’’

He added: “The insurance industry will gradually respond to these developments, but the current pace of acknowledging the safety improvements such technology is bringing is far too slow. The industry should seek to collaborate with vehicle manufacturers in order to better understand the latest technology and how it can improve driver safety – in turn this will allow for customers to receive lower insurance premiums.’’