I’m not kidding. In the near future you could be paying 90% less for car insurance. Here’s how.
Have you ever gone into Best Buy and bought an electronic device such as a computer or smartphone and purchased insurance in case you drop it and break it? Now you’re saying, “Yea, but what does electronic device insurance have to do with auto insurance?” In just a few years our streets, roads and highways will be filled with four-wheel electronic devices. That’s right, cars powered by a battery that you will plug in a night so you can use it the next day. They will also have an array of cameras and sensors controlled by powerful computer chips allowing you to take your hands off the wheel and sit back and relax. Self-driving autonomous electric vehicles. Sounds like electronic devices to me.
As pictured above, Tesla has been manufacturing and selling all-electric vehicles for several years now with self-driving capabilities. Their cars are high end luxury vehicles that have been sold worldwide and Tesla has been offering car insurance in select markets which is customized to match the performance of its self-driving “Autopilot” technology. Tesla’s first generation Autopilot has resulted in a 40% crash rate reduction. Thus, they are selling their own insurance at a 40% discount over traditional auto insurance rates.
Starting July 1 Tesla will begin production of the Model 3. It will be an all-electric mid-size sedan starting at $35,000 with self-driving capabilities as an option. However, it has been announced that the Autopilot technology on the Model 3 will be Tesla’s ‘second generation’ Autopilot which will reduce crash rates by 90%. Company officials have hinted that if a 90% crash rate reduction is achieved, it will offer Tesla Model 3 buyers insurance that would be priced 90% below conventional auto insurance rates. Wow!
Wouldn’t you like to pay 90% less for auto insurance? Here’s some real world dollar savings. The national average annual premium for car insurance is $1325. If everyone drove a Tesla the national average annual premium would be $132.50. That’s only about $30 more than if you bought just one cup of Starbucks coffee a week for a year. Michigan has the highest car insurance rates in the nation. If you owned a Tesla Model 3 in Michigan, you’d pay $273.80 for car insurance. Maine has the lowest car insurance rates in the nation. If you owned a Tesla Model 3 in Maine, you’d pay $80.80 for car insurance.
Here’s something else to think about. Electricity for an all-electric vehicle costs about 40% less mile-for-mile than gasoline for a conventional gas powered vehicle. I don’t think I’m going to be able to afford NOT to own a Tesla Model 3.