When it comes to insuring a vehicle, typically the higher price the vehicle has on it the more expensive it is to insure. Imagine then the price a Tesla Model S owner must pay in order to insure a car that costs over $100,000 to purchase. This added cost of ownership is just part of the equation, but where Tesla is concerned, it seems CEO Elon Musk has found a new way to make some added money for his company and be a bit more comprehensive about the coverage that Tesla owners can receive.
Recently it was discovered that Tesla is partnering with two companies to offer insurance specifically on Tesla models. Of course this testing phase of the program isn’t being done in the US, instead Tesla is partnering with AXA General Insurance in Hong Kong and QBE Insurance in Australia to offer insurance in these markets. These policies are expected to be considerably more affordable than a regular insurance policy and offer some coverage that you might not think you need to have until you actually have to deal with the challenge of having a vehicle that doesn’t work or a related issue.
For $900 a year Australians can buy coverage on their Tesla vehicles and even have a full replacement of the vehicle if its less than three years old. That may be an expected part of the equation, but for those who end up destroying their Tesla Wall Connector, this device can actually be covered as well, which makes it much easier to replace and live with. Another coverage that’s being offered is a lost key or broken lock coverage which maxes out at $2,500, but at least you’d be covered for these items to that amount to have your Tesla keys and locks fixed or replaced.
Why would Tesla begin to sell insurance? One reason is to add revenue to the bottom line of the company. With the aggressive approach that Tesla has laid out in front of themselves there needs to be more money coming into the company and this is one way for that to take place. Another reason is the continued case Elon Musk makes for the Autopilot system and how it will be able to prevent more accidents in the future. That future may be when this system is fully autonomous, but human error does account for over ninety percent of car accidents, making a computerized system less likely to have as many failures.
This new direction for Tesla gives owners in Hong Kong and Australia the ability to have a great insurance program and enjoy driving their Tesla vehicle with the knowledge they will be covered. This marks another great move by Elon Musk and the team at Tesla and hopefully this program will eventually expand to be offered in the US as well. Until then it seems we’re stuck with our current coverage options, but it might not be long before all Tesla owners are visiting the InsureMyTesla website to receive their policy.
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