Tesla’s Insurance Bid: Smoke And Mirrors?

 Tuesday, May 7, 2019

 Business Insurance

Automaker Tesla recently announced that it would offer its own insurance product to customers, but some experts believe the car company might be biting off more than it can chew.

Tesla CEO Elon Musk revealed during a quarterly earnings call that his company would offer a “much more compelling” insurance option than the usual high premium options current Tesla car owners have. Apart from the fact that Tesla has partnered with State National Insurance — a Markel subsidiary — specific details regarding the actual product remain scant.

While Tesla’s ambitious foray into insurance makes sense, as the company hinted that it would utilize the data it has access to in terms of driver behavior to price insurance, industry leaders are skeptical about the decision.