December 9, 2022

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Tesla Insurance Expands to Arizona & Ohio

Tesla Insurance has been expanded to Arizona and Ohio. This is something that Sawyer Merritt, who was recently interviewed by Dave Lee, predicted. In December 2021, Sawyer Merritt, who is well known in the Tesla Twitter community for sharing breaking Tesla-related news, shared that he was told by a source that Tesla was aiming to launch Tesla’s insurance in two more states in January 2022. Along with that, three other states will be getting Tesla insurance during Q1 2022. Earlier today, Sawyer announced that Tesla launched its insurance in Arizona and Ohio.

Tesla’s website also reflects this news.

“Get competitive rates in Arizona, California, Illinois, Ohio, and Texas in as little as one minute. Insurance based on real-time driving behavior now available in Arizona, Illinois, Ohio, and Texas.”

So far, there are now five states that have it and three more will be announced eventually. Here’s to hoping one of those states is Louisiana, which has the highest premiums in the nation and is double the national average. Following Louisiana are Florida, California, and Missouri.

Drive Tesla Canada noted that it’s possible that New York will be one of the states that Tesla will expand insurance to and pointed out that in September, Elon Musk said that New York was on the list to receive it in 2022.

In July 2020, I wrote this article when Tesla first made the announcement about insurance. During Q2 2020 earnings call, Elon Musk and Tesla put the insurance industry on notice. Although it’s almost been two years since that call, it’s good to look back on these things to see how Tesla has progressed.

“We’re building a great, major insurance company. If you’re interested in building a revolutionary insurance company, please join Tesla. Especially if you want to change things. This is the place to be. We want revolutionary actuaries.”

In Q3 2020’s earnings call, Elon Musk pointed out that the insurance part of Tesla’s business could be 30% to 40% of the value of the car business.

“Obviously, insurance is substantial. So insurance could very well be, I don’t know, 30%, 40% of the value of the car business, frankly.”

At the time, Tesla had recently become the most valuable carmaker in the industry. Today, however, Tesla is a $1 trillion market cap company. In that article, I pointed out that if Tesla’s insurance was 30% of its market cap in 2020, that number would be $117.6 billion, which would knock State Farm from its spot at the top of the industry — it was at $42 billion.

For now, Tesla’s insurance arm has only expanded to five states, with three more clearly planned. Many tend to forget about this part of Tesla’s business, or may even dismiss it, but one thing I’ve noticed with covering Tesla over the past few years is that Tesla has a slow yet steady approach to things, despite all the noise surrounding it.

Another excellent article to read and use to note Tesla’s progress with its insurance business is this one by Carolyn Fortuna. The article was written as a resource page and shares the history of Tesla Insurance, from when Tesla first started selling its own insurance policies in 2019.


 

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