Tesla looks like it is finally preparing to roll out its in-house auto insurance program in Florida. The company recently filed updated documents with state regulators to revise its Private Passenger Auto program, signaling that it is ready to enter one of the largest and most complex auto insurance markets in the United States this December. (via Coverager)
The launch has been in development since 2022, when Tesla first planned to debut the product before regulatory delays pushed it back. At the time, Tesla said it was introducing a new version of Safety Score that would improve accuracy and address concerns over sensitive metrics such as forward collision warnings.
Since then, Tesla has refined its scoring model, releasing Safety Score 2.2 earlier this year. The update removed forward collision warnings from its calculations amid a lawsuit over the issue.
The tool also analyzes factors such as hard braking, aggressive turning, following distance, and speeding to generate a dynamic score that updates monthly. Depending on driving behaviour and mileage, premiums can fluctuate by as much as 50 percent per vehicle using the real-time driving data gathered through the Safety Score system
If the rollout finally goes forward, Florida will become the 13th state to offer Tesla Insurance, giving drivers a new option in a market where premiums are among the highest in the United States. The state’s complex risk environment, thanks to extreme weather, high accident rates, and rising repair costs, has driven several insurers to scale back operations, making Tesla’s entry into this market particularly significant.
While Tesla is eyeing a launch in Florida, it is facing potential legal issues over its insurance product in California. The company is being accused of engaging in wilful unfair claims settlement practices leading to unreasonable denials and unnecessary delays in completing insurance claims.
Tesla’s insurance offering in California is different than those in all other markets as the company is not allowed to base their premiums on real-time driving behaviours. Customers may opt-in to receive a Safety Score, but it is for educational purposes only.
