Tesla has started offering its Asian customers a package, that includes the cost of insurance and maintenance as well. At its latest earnings call, the company said that this is exactly how it would like to proceed with business globally as well.
At its earnings call, the company said that it would like to offer insurance to vehicle owners as well. It would like to do so in partnership with external insurance providers, however, it was looking into providing insurance as an in-house product as well.
Speaking on the topic, Jeff Evanson, Tesla VP of Global Investor Relations said:
We’re actually currently doing that. We’ve been doing it quietly, but in Asia in particular where we started this, now the majority of Tesla cars are sold with an insurance product that is customized to Tesla, that takes into account not only the Autopilot safety features but also the maintenance costs of the car. It’s our vision in the future that we’ll be able to offer a single price for the car, maintenance and insurance in a really compelling offering for the consumer. And we’re currently doing that today.
Adding to that, Tesla CEO Elon Musk said:
This is not to the exclusion of insurance providers if we find that insurance providers are not matching the insurance proportionate to the risk of the car. If we need to we’ll insource it, but I think we’ll find that insurance partners do adjust rates proportionate to the risk of a Tesla.
Musk also talked about how these external insurance providers could offer their services at significantly reduced rates, considering that with the autopilot and other state of the art facilities, Tesla cars were decidedly safer than others.
Well, insurance could prove to offer Tesla yet another revenue stream. Meanwhile, this would also send a good sign to the company’s customers that the company believes in its own vehicles.
