Tesla has been operating in California for more than a year since launching its own car insurance service in 2019. Recently, they decided to expand the service to more states in the US.
It has been a long-standing goal of Tesla to expand its insurance business to multiple states in the U.S., but the process of getting its business approved has been complicated and slow due to differences in the regulatory environment and policies in each state. Elon Musk has revealed in his recent Twitter post that its insurance business will be launched in Texas next month and in New York State in 2022.
The insurance service offered by Tesla is an emerging car insurance business that is billed on the basis of usage, known as UBI (Usage-based Insurance). The premium rates charged will be based on the customer's actual driving record, which can significantly reduce unnecessary premium expenses. According to Tesla, their insurance plans can save drivers up to 30 percent in some states.
Tesla to Launch Usage-Based Car Insurance in Multiple U.S. States