Tesla Drivers in Three States Get a New Insurance Deal - Could This Be a Game Changer?
Direct Connection to Tesla Vehicles
Tesla owners in Arizona, California, and Oregon now have a new insurance option. Lemonade, an AI-driven insurance company, is offering a direct connection to Tesla vehicles through their app. This means no extra telematics devices are needed. Lemonade claims this will lead to better customer experiences and smarter pricing.
Customized Rates and Lower Prices
Lemonade is known for using data to customize rates. They usually send a device to collect data for pay-per-mile insurance. But with Tesla, they can get the data directly from the car. This could mean lower prices for Tesla owners. On average, Lemonade's insurance for a Tesla costs between $32 and $41 per month. The exact price depends on driving history and the specific Tesla model.
A Game-Changer in the Insurance Market
Not all insurance companies cover Teslas, and many charge more due to higher repair costs. Lemonade's move could be a game-changer. They tweeted:
"This is a game-changer for smarter, seamless experiences and we're just getting started! More states coming in 2026."
Insurance for Tesla's Full Self-Driving (FSD) Miles
Lemonade has also pitched insurance for Tesla's Full Self-Driving (FSD) miles. They said they would be "happy to explore insuring Tesla FSD miles for (almost) free." This could encourage more Tesla users to try FSD. Data shows FSD miles are nine times less likely to be in an accident compared to the average in the U.S.
Tesla's Own Insurance Program
Tesla also offers its own insurance program. It's available in 12 states, with Florida possibly joining soon. Tesla's insurance uses a Safety Score to calculate rates. This score is based on factors like hard braking, aggressive turning, and speeding. However, reports suggest Tesla's insurance business might be losing money. In 2023, they paid out 92.5 cents in claims for every dollar earned in premiums. This doesn't include overhead costs, so the actual profit is likely lower.
Higher Insurance Premiums Due to Vandalism
Tesla owners are also facing higher insurance premiums due to increased vandalism. This is a growing concern for the company. Lemonade's new offer could be a good alternative for Tesla owners in the affected states.
