It’s not uncommon for Tesla to veer from its core automotive business from time to time. Over the years, the automaker has launched a home battery system known as Powerwall, and, more recently, Tesla got into the business of making solar panels for residential use. Now Tesla is rolling out a new insurance division.
On Wednesday, Tesla announced the launch of Tesla Insurance, which is exactly what it sounds like—vehicle insurance for Tesla owners. The company said the coverage is custom tailored for Tesla owners, resulting in savings of up to 30 percent compared to conventional insurance policies.
“Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost,” the company said in a blog post. “This pricing reflects the benefits of Tesla's active safety and advanced driver assistance features that come standard on all new Tesla vehicles.”
For now, Tesla Insurance is only available for California residents. However, the company said it is planning to expanded into other U.S. states.
Tesla noted owners can purchase a policy from Tesla Insurance in as little as one minute using a dedicated web portal. Anyone who has ordered a Tesla and hasn’t taken delivery of their vehicle yet can also request a quote by using their assigned VIN.
Tesla Insurance provides month-to-month coverage, with customers welcome to change or cancel their policy at any time. Like normal auto insurance, policy prices will vary based on a number of factors.