Tesla set to lower in-house Insurance premiums with latest move

Tesla has hired a long-time GEICO executive to manage its Insurance program and make costs and premiums more affordable for drivers.

Tesla launched its in-house insurance program in the United States in 2019. Most drivers have not adopted it because the rates are still higher than the company planned for them to be.

Insurance costs were expected to be lower because Tesla knows its vehicles better than the large insurance companies out there. However, it has still had trouble decreasing costs.

However, Tesla made a major move in an attempt to bring down the costs of its insurance premiums by hiring a longtime GEICO executive whose main priority will be to make the option more affordable for drivers.

Yesterday, Allen Laben announced he had joined Tesla as the Head of Strategic Insurance Partnerships.

His new position at Tesla was first reported by Electrek.

Laben detailed his goals for Tesla Insurance in a LinkedIn post:

“Here’s my goal in this role: Make Tesla vehicles EASY and ECONOMICAL to insure. By partnering with insurance companies, teams across Tesla, and collision shops in the USA and Canada, we’ll lower the total cost of Tesla ownership and accelerate the world’s transition to sustainable energy.”

Where is Tesla Insurance available?

Tesla Insurance is available in several U.S. states, including Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia.

Due to regulations, Real-Time Insurance, which uses a Safety Score to determine an appropriate rate, is not available in California.

Last year, drivers sued Tesla in a class-action lawsuit that claimed the company charged them too much by using “false” crash warnings. Tesla attempted to have the suit thrown out, but a judge ruled against it.

Drivers are still waiting for the in-house insurance option from Tesla to offer 20 to 30 percent lower rates. Perhaps hiring Laben will help Tesla bridge the gap.

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