Tesla, Liberty Mutual Partner on Electric Car Insurance for U.S.
October 13, 2017 by Anne Riley Moffat
Tesla Inc. is partnering with Liberty Mutual Insurance Co. to offer an auto insurance plan designed specifically for its electric cars in the U.S.
The plan made available to U.S. customers starting Friday is similar to what Tesla owners have been offered in almost 20 countries. Among other benefits, Liberty will offer to replace damaged Teslas that are deemed a total loss within the first year, according to the automaker’s website. A Tesla spokesperson confirmed the U.S. launch and declined to comment further.
The launch of InsureMyTesla in the U.S. comes after Chief Executive Officer Elon Musk took issue with reports earlier this year that insurer AAA was raising rates to insure Tesla vehicles in some markets, citing high claim frequencies and costs. Musk disputed the insurer’s analysis, saying during Tesla’s annual meeting in June that the automaker’s own internal study showed the average cost of insuring a Model S or Model X was about 5 percent lower than for other premium vehicles.
If a Tesla driver’s insurance goes up, “there is a simple solution,” Musk said. “Change your insurance provider.”
Electrek reported on the insurance plan earlier Friday.
Copyright 2017 Bloomberg.