The National Digest

Tesla Wants Your Car Insurance Business. It May Not Save You Money

If Tesla has your car-loving heart, it now wants your auto insurance business, too.

The electric auto manufacturer has waded into the insurance business with a program in California — its largest market — and plans to expand to other states in the future.

While the company says its rates could be as much as 20% cheaper than other insurers’ prices — even 30% in some cases — early reports from Tesla owners suggest that some drivers are getting quotes that are higher than their current coverage elsewhere, experts say.

“While it is entirely possible that Tesla can offer significant savings, it’s not clear if current [owners] will be able to take advantage of them immediately,” said Mark Fitzpatrick, an auto insurance analyst at personal finance website ValuePenguin. “I believe Tesla will continue to tweak its insurance program before rolling it out nationally.”

Read more…