Tesla starts offering car insurance, though details are still hazy

Tesla began offering auto insurance to its vehicle owners in California, touting rates as much as 30% lower without offering much detail.

The electric-car maker is offering online quotes through its website and plans to expand the service throughout the US. While Tesla said in a blog post that it will be able to lower costs because the company "knows its vehicles best," the carmaker won’t use or record vehicle data when pricing insurance, according to its website.

    Chief executive officer Elon Musk has bristled for years at some Tesla customers’ complaints that they’re paying high insurance rates. Costlier coverage undercuts the case the company frequently makes that its cars are the safest in the industry and its driver-assistance system Autopilot helps drivers avoid crashes.

    The availability of the new service isn’t clear. A single sentence currently appears on the Tesla Insurance website: "Algorithm update in progress."

    Tesla’s insurance product will only cover the company’s vehicles and doesn’t extend to commercial use such as ride-sharing for now. The carmaker says it plans to offer commercial insurance in the future to support its own sharing network.

    Tesla shares rose 0.7% to $215.59 at the close Wednesday. The stock has plunged 35% this year.

    ZAR/USD
    17.63
    (-0.14)
    ZAR/GBP
    23.01
    (-0.05)
    ZAR/EUR
    20.78
    (-0.04)
    ZAR/AUD
    12.62
    (-0.03)
    ZAR/JPY
    0.17
    (-0.02)
    Gold
    2034.21
    (+0.05)
    Silver
    28.28
    (+0.09)
    Platinum
    961.50
    (+0.38)
    Brent Crude
    44.55
    (-1.53)
    Palladium
    2166.01
    (+0.63)
    All Share
    56757.73
    (-1.56)
    Top 40
    52435.65
    (-1.72)
    Financial 15
    9897.96
    (+0.10)
    Industrial 25
    74671.49
    (-1.98)
    Resource 10
    58948.78
    (-1.89)
    All JSE data delayed by at least 15 minutes morningstar logo
    Company Snapshot
    Voting Booth
    Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
    Please select an option Oops! Something went wrong, please try again later.
    Results
    Yes. We need the money.
    11% - 929 votes
    It depends on how the funds are used.
    74% - 6241 votes
    No. We should have gotten the loan elsewhere.
    15% - 1284 votes
    Vote