A new policy covering Teslas, targeting low mileage drivers, allows insurers to communicate directly with cars. All of Tesla’s cars are electric. They can connect to the internet and can drive and park by themselves. Tesla cars are futuristic, but Tesla drivers still have to rely on old fashioned insurance, and no insurer has managed to sync up to the cars’ advanced computers.
Now, Tesla drivers don’t have to deal with that problem anymore. They can connect their vehicles automatically to insurer La Parisienne Assurances, through policies sold by a broker named “By Miles.” These policies calculate a monthly premium based on the car’s mileage. Drivers don’t need telematic black boxes installed in the vehicle because they can keep track of their insurance through a smartphone app.
Traditional insurers offer limited choices to Tesla drivers, who pay above-average premiums. Out of 617 car insurance firms, only 12 offer Tesla insurance.
With By Miles, a 32-year-old Tesla model 3 driver doing 4,000 miles per year would pay about £679 ($885), compared to the cheapest competitive quote of £1,246 ($1,624) from insurer Churchill. Additionally, if Tesla batteries or charging cables are damaged or stolen, the By Miles policy will pay it out, which most standard car insurance would exclude.
By Miles is targeting lower mileage Tesla drivers with the policy. The average British car is driven 7,800 miles per year. However, if a Tesla driver drives over 7,000 miles on a By Miles policy, then the cost will be similar to a typical car insurance deal.
According to James Blackham, from By Miles, insurers will potentially be able to use even more data from the cars’ onboard computers to underwrite. “There is a lot of data available from connected cars. A milometer is just the beginning of what you can use,” Blackham said.
Checking seat sensors to make sure passengers don’t forget to wear their seatbelts and monitoring the temperature to help motorists drive safely in icy conditions could be the insurer’s next steps.
