On a call with investors, Musk said that Tesla is in the process of “building” what he called a “major insurance company,” Business Insider reports. By the end of the year, he hopes to have launched in a handful of U.S. states.
The big idea, Business Insider reports, is that by going to Tesla for both a car and insurance coverage, drivers would be able to get rates that actually match their behavior — like risky driving — at a personalized level.
Tesla has actually tried to launch insurance before. In 2019, Tesla advertised an in-house insurance plan for drivers that would supposedly be 20 percent lower than competitors. But Business Insider reports that those few customers who did get quotes said that their current plans were much cheaper. Needless to say, the program didn’t last long.
