--- title: "Elon Musk Says Tesla Is Launching an Insurance Company" description: "Elon Musk announced that Tesla is about to try and enter the auto insurance business — and hopefully fare better than its dismal attempt last year." date: "2020-07-23" modified: "2020-07-23" authors: - name: "Dan Robitzski" link: "https://futurism.com/authors/danrobitzski.md" url: "https://futurism.com/the-byte/elon-musk-tesla-launching-insurance-company" categories: - "Advanced Transport" - "Elon Musk" - "Future Society" - "Tesla" - "The Industrialists" tags: - "elon musk" - "insurance" - "tesla" - "the digest" --- # Elon Musk Says Tesla Is Launching an Insurance Company ![Elon Musk announced that Tesla is about to try and enter the auto insurance business — and hopefully fare better than its dismal attempt last year.]() *\Image: Victor Tangermann\* ## 420 Gecs Tesla is about to get into the auto insurance game, CEO Elon Musk announced Wednesday. On a call with investors, Musk said that Tesla is in the process of "building" what he called a "major insurance company," *[Business Insider ]()*[reports](). By the end of the year, he hopes to have launched in a handful of U.S. states, generating premiums and rates for drivers based on data collected by their cars' internal sensors. ## Take Two Tesla has actually tried to launch insurance before. In 2019, Tesla advertised an in-house insurance plan for drivers that would supposedly be 20 percent lower than competitors. But *Business Insider* reports that those few customers who did get quotes in the hours before the insurance website was taken down said that their current plans were much cheaper. Needless to say, the program didn't last long. ## Personalized Rates The big idea, *Business Insider* reports, is that by going to Tesla for both a car and insurance coverage, drivers would be able to get rates that actually match their behavior — like risky driving — at a personalized level. "Ultimately, where we want to get to with Tesla Insurance is to be able to use the data that's captured in the car, in the driving profile of the person in the car," Musk said on the call, "to be able to assess correlations and probabilities of crash and be able then to assess a premium on a monthly basis for that customer." **READ MORE:** [Elon Musk says Tesla is creating a 'major insurance company' after its botched rollout in California last year]() \[*Business Insider*\] **More on Tesla:** *Tesla's New Insurance Business Had 24 Hours of Hell* ## Author Dan Robitzki is a senior reporter for Futurism, where he likes to cover AI, tech ethics, and medicine. He spends his extra time fencing and streaming games from Los Angeles, California. ### Author social links [Twitter]() ## More - [Insurance Companies Are Now Offering Discounts if You Let Your Tesla Drive Itself]() - [Sounds Like Insurance on Teslas Is Going to Skyrocket Because of All the Vandalism]() - [The Cybertruck Is Such a Mess That Insurance Companies Are Refusing to Even Cover It]() - [Elon Musk Says Deluxe Tesla Will Use SpaceX Thrusters for Spine-Crushing Acceleration]() - [Teslas Crash More Than Any Other Brand, Analysis Finds]() - [Elon Musk Alarmed That Teslas Beep Constantly in Drive-Thru Lanes]() - [Elon Musk Defends Tesla’s Misleading “Autopilot” Mode]() - [Elon Musk Says Tesla Is Working on a Car With No Steering Wheel]()