The automaker's CEO Elon Musk announced its launch of internal car insurance based on individual driver profiles

As electric cars become more popular, the issue of high insurance rates continues to be a pain point among drivers. Car maker Tesla is planning to offer its own insurance as a way of alleviating this problem and making its cars more attractive to prospective buyers.

Tesla will determine how much customers should pay by capturing driving data. This allows them to have direct knowledge of the risk profile of the driver and car and adjust the rate accordingly. Musk also added that Tesla is giving insurance companies information about the Autopilot feature as a means to help reduce insurance rates.

While little is known what the insurance policy will look like, some speculate that cars with the Autopliot feature will be given more value. “We are creating a Tesla insurance product,” Tesla CEO Elon Musk confirmed during the company's earnings call as reported by Engadget. “We are hoping to launch that in about a month. We think it will be much more compelling than anything else out there.”

Tesla


Lead image: stock photos from Caspars Grinvalds/Shutterstock

As electric cars become more popular, the issue of high insurance rates continues to be a pain point among drivers. Car maker Tesla is planning to offer its own insurance as a way of alleviating this problem and making its cars more attractive to prospective buyers.

Tesla will determine how much customers should pay by capturing driving data. This allows them to have direct knowledge of the risk profile of the driver and car and adjust the rate accordingly. Musk also added that Tesla is giving insurance companies information about the Autopilot feature as a means to help reduce insurance rates.