Tesla Insurance in Texas: Real-Time Driving Behavior Pricing

Tesla Expands Insurance to Texas with Behavioral Pricing

Tesla has begun offering auto insurance to residents of Texas, following its initial launch in California a few years prior. However, the insurance model utilized in Texas differs significantly from that available in California, as reported by Electrek.

Unlike conventional insurance companies, Tesla’s Texas plan bases premiums on a driver’s real-time driving behavior. Factors traditionally considered – such as credit score, age, and gender – are reportedly not utilized in the premium calculation.

A Focus on Safety Scores

Furthermore, Tesla states it will not review customers’ prior claim history or driving records. Instead, the company will assess insurance rates based on “safety scores.”

This scoring system was initially introduced alongside the Full Self-Driving Beta release in September. The resulting premiums are dynamic, potentially fluctuating monthly based on driving conditions.

Actions like frequent forced collision warnings and Autopilot disengagements will negatively impact a driver’s score. Similarly, unsafe following distances, harsh braking, and aggressive cornering can all contribute to a lower score.

How the System Works

Currently in beta, the safety score feature is expected to be refined over time. Tesla is initially offering quotes based on an assumed safety score of 90.

The final insurance price will then be adjusted based on the driver’s actual performance. This could result in premiums that are either more or less expensive than those offered by traditional insurance providers.

Future Plans for California

During a recent shareholder meeting, Elon Musk announced plans to transition the California insurance model to a similar real-time driving behavior system.

While regulatory approval is currently pending, Tesla is actively seeking permission to implement these changes in California.

Editor’s note: This article originally appeared on Engadget.