Tesla Insurance May Expand Outside California By End Of 2020

Insurance for Tesla Inc TSLA vehicles has a reputation for being more expensive than most other brands. One way for the company to solve this problem is to offer its own insurance.

Tesla presently offers insurance only to those in California through a partnership with State National Insurance.

During Tesla's second-quarter earnings call Wednesday, CFO Zach Kirkhorn gave more details on Tesla's insurance rollout. The company is perfecting the calculations used to give customers the best rate, and this task is almost complete, he said.

Tesla insurance most likely will be rolled out to several more states by the end of 2020, the CFO said — although the states were not named.

Benzinga's Take: While the idea that insurance on Teslas is more expensive is not always true, it persists enough that it's a common concern of potential new Tesla owners.

The topic is often brought up on forums across the internet, and indeed some people pay significantly more to insure their Tesla than other vehicles.

But if Tesla can offer their own insurance for a better rate, it will attract more car buyers — as well as generate an additional revenue stream for Tesla. 

Photo courtesy of Tesla.