Unlike most other auto manufacturers, Tesla Inc (NASDAQ: TSLA) offers its own vehicle insurance policy for customers.

The insurance was first offered in California, but has since expanded to Texas. And now it seems Illinois residents are next to sign up for the more affordable insurance.

Tesmanian shared information showing Tesla will be partnering with Midvale Indemnity Co. as an underwriting partner. This is the same approach Tesla used in both California and Texas to offer vehicle coverage.

In user reviews, Tesla is able to offer lower costs compared to what customers were using before. CEO Elon Musk has said it should be about 20% less than comparable insurance for people in California.

Part of this comes from the fact that Tesla can obtain a lot of data from the car if customers choose to share that information. Tesla can monitor driving data including speed, mileage and accelerations to determine a personalized safety score. The collected data helps to determine the value of discount the driver can receive.

The application to distribute insurance in Illinois states it will "use the technology in vehicles to lower costs and improve the customer experience through automated underwriting, rating, and claims, including direct data feeds with customer permission, that eliminate frictional costs and inefficiencies inherent in traditional insurance processes."

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(Photo courtesy of Tesla)