Tesla Could Introduce Bundled Pricing for Insurance and Maintenance
Tesla could start bundling insurance and maintenance into its price to buy a car.
The American automaker has begun offering the package to customers in Asia, it revealed during an earnings call. It hopes to do the same in other markets in the future and will likely partner with external insurance providers to do so. Tesla is also investigating how it could handle insurance in-house as an option.
The idea is that the purchase price of a Tesla vehicle would include maintenance and insurance, so shoppers get a clearer idea of a vehicle’s true cost to own. Tesla also believes its vehicles offer strong advantages when it comes to safety and maintenance costs, which is why the move makes sense for the company.
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“We’re actually currently doing that,” said Jeff Evanson, Tesla vice president of global investor relations. “We’ve been doing it quietly, but in Asia in particular where we started this, now the majority of Tesla cars are sold with an insurance product that is customized to Tesla, that takes into account not only the Autopilot safety features but also the maintenance costs of the car. It’s our vision in the future that we’ll be able to offer a single price for the car, maintenance and insurance in a really compelling offering for the consumer. And we’re currently doing that today.”
Tesla CEO Elon Musk added to the statement saying, “This is not to the exclusion of insurance providers if we find that insurance providers are not matching the insurance proportionate to the risk of the car. If we need to we’ll insource it, but I think we’ll find that insurance partners do adjust rates proportionate to the risk of a Tesla.”
[Source: Tech Crunch]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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