April 28, 2022—During Tesla’s recent Q1 2022 earnings call, CEO Elon Musk offered new details about Tesla’s insurance offering that uses real-time driving behaviour data. According to an article by Reinsurance News,
Musk explained that having real-time feedback for driving habits is actually resulting in Tesla owners driving the cars in a safer way, because they are able to know whether these habits are affecting their insurance rate or not.
He added that when people see the feedback they can see a real-time score, allowing them to realise that if they make the following changes in their driving habits, then they pay less in insurance.
he notes that it's also a feedback loop for Tesla because if there is a crash, the company can see what caused it, allowing them to then think about how they can change the design of the car or software.
“Most accidents are minor, but how do you have those accidents occur less frequently, and how do we make the repair associated with that accident super-fast," he asked. "Like, aspirationally, it would be a same-day repair of a collision, which is night and day difference compared to sometimes having to wait for a month while insurance claims are settled and figured out – because Tesla is also doing collision repair.”
Musk explains this makes the customer experience “vastly better”, because if there is an accident, there is no argument.
“We’ll repair it immediately”, he says. “And this is as compared to arguing with an insurance company and then a claims adjuster and then a collision repair centre. And this can be a nightmare basically. So, we’re trying to turn a nightmare into a dream with Tesla Insurance.”
