Once again Tesla is shaking up the automotive industry, this time through insurance for life. The company has started offering a lifetime maintenance and insurance package for some customers, meaning monthly car insurance bills could soon be a budget item of the past. Tesla President of Global Sales and Service Jonathan McNeill said, “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.”
Assured of the features incorporated in a Tesla that purportedly make the vehicle safer than a typical car, such as Autopilot, Tesla has begun including lifetime insurance and maintenance package right in the initial price of their cars. The new package reflects the idea that their safety features could reduce the price of maintenance and insurance.
In an earnings call, McNeill said, “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.”
Such a package could allow consumers to know exactly how much a Tesla car will cost them over the long term, rather than facing unforeseen repair costs or rising insurance costs.
Elon Musk made it clear Tesla is willing to offer the package if insurance companies aren’t on board, even though he said his company isn’t trying to disrupt the insurance market. He said of the insurance plan, “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.”