Tesla partners with Liberty Mutual: wants to change global insurance landscape

By:   Fedora Atjeh Fedora Atjeh   |   10/23/2017 11:27:00 PM
Tesla partners with Liberty Mutual

Irremediably, the change of era in the automotive industry will influence the other spheres related to the world of the engine. The new technologies are changing our habits, our way of moving, the infrastructures and the insurance industry; one day all car insurance will be a marriage between technology and a Big Brother, but Tesla has decided to take one step further.

As published by Business Insider, Tesla has created InsureMyTesla, a cheaper personalized insurance package than traditional plans, because it takes into account the autopilot safety features and vehicle maintenance costs. And to carry it out has partnered with Liberty Mutual, among other giants.

The InsureMyTesla personalized insurance package began to be distributed without much noise in Hong Kong and Australia in February, and on October 13 Tesla launched the package in all 50 US and Canadian states, and already exists in 20 other countries. The electric car manufacturer has partnered with different insurance companies around the world, reducing overall insurance costs by taking into account the autopilot safety features and vehicle maintenance costs, which are not the same as in traditional vehicles, of course.

This custom insurance was designed specifically for Tesla vehicles. In the case of the partnership with Axa, the insurance includes coverages as a replacement vehicle for 15 days per accident or 30 days for theft, the official Wall Connector in case of accident or theft of the device, repainting the vehicle and duplicating keys up to 1,000 euros and new value to three years in case of own damages, fire or theft and towage due to lack of battery, among others.

The agreement with Liberty Mutual shows how US insurers are beginning to realize that they must adjust their prices as cars become safer with the advent of self-control technology. A study by the KPMG firm predicted that the personal insurance sector could decline 40 percent from its current size in 25 years.

The equation seems simple: refinement of autonomous technology + adaptation of infrastructures + reduction of accidents + change in maintenance costs = reduction of the role of insurers.

The goal of Tesla is to offer a unique price for the car, maintenance and insurance. As Bloomerg reports at Tesla's annual meeting in June, the automaker's own internal study showed that the average cost of securing a Model S or Model X was about 5% lower than for other premium vehicles.

Musk thus encourages Tesla drivers to pay above-average premiums, to change their supplier. Thus, the giants of the insurance industry are interested in diving as soon as possible in the world of personalized insurance, and ally with the giants who are already changing the sphere of the automotive if they want to survive.

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