Tesla plans its own car insurance in Europe



Tesla plans its own car insurance in Europe

In some US states, it has already been available for several years, and now it is to come to Europe as well. Tesla is apparently planning to establish its own car insurance in Europe. For this purpose, Tesla has moved the location of a registered insurance subsidiary to London.

Until now, Tesla has cooperated with insurance companies in the UK and Europe to offer insurance to European customers. This is now to change, but it is not yet known exactly when Tesla's own insurance will open in Europe. Originally, the insurance was to be introduced in Europe as early as 2022, but this launch had to be postponed. Tesla CFO Zachary Kirkhorn said that Tesla first had to see how the project was progressing in the USA.

The Tesla insurance model consists of dynamic rates. In this case, a general accident risk is not used for the assessment, as is the case with other insurance companies, but the rates are calculated based on a so-called safety score of the individual drivers.

According to a Tesla website, the calculation of the safety score uses events such as night driving, collision warnings, automatic deactivation of Autopilot due to driver inattention, heavy braking or abrupt turning maneuvers, and insufficient distance to the vehicle in front. This data is then used to calculate a percentage between zero and 100 percent. The higher the score, the safer the driving and the more favorable the rate. The data is measured over a period of 30 days. Most drivers are expected to have a safety score of 80 or above.

In the USA, Tesla's insurance is already active in twelve states and the safety score is used in eleven of them. Only in California is this prohibited.  Although Tesla says on its website that no location data is collected, the approach could also have problems with European data protection regulations.

For example, pay-as-you-drive insurance policies in the EU already face some data protection concerns because a great deal of the data of the persons concerned is recorded. For example, such insurances record when the driver flashes his lights, what music he listens to and at what volume it is played. A profile can be created from the sum of the data, which can thus be used for criminal investigations. Critical voices are of the opinion that the release of the data is being handled too guilelessly.
To what extent this can also be applied to the safety score used by Tesla remains to be seen.

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