02 Sep 2019
Tesla Insurance will appeal to price-sensitive clients, as 63% of consumers use price comparison sites when buying car insurance
Following the news that Tesla has introduced its own insurance product, Tesla Insurance, for customers in California, Ben Carey-Evans, Insurance Analyst at GlobalData, a leading data and analytics company, offers his view:
“Technology-packed vehicles often cost more to insure than traditional cars, a big issue for consumers, as price is critical for them when considering motor insurance.
“GlobalData’s 2018 UK Insurance consumer survey results shows that 63% of respondents purchased motor insurance through a price comparison site, confirming that price is a key factor in their decision making.
“The arrival of Tesla Insurance which will utilise the cars built in technology to offer owners discounts of up to 30% on their premiums, poses a threat to the big insurance companies as they could be cut out of the buying process altogether as autonomous vehicle owners will be able to insure their cars direct with their manufacturer.
“Tesla started their product in California, but we expect it to look into other markets as well, and the UK is likely to be one of the key targets, considering consumer behavior in the country.”