American automaker Tesla is reportedly gearing up for the European launch of its Tesla Insurance business.
In retrospect, Tesla already founded a European branch of its insurance business in Malta in December 2020. However, the automaker has not yet released any insurance services to drivers until now.
Tesla Insurance in UK and rest of Europe
Tesla to launch a “full-stack in-house insurer” in the United Kingdom and wider Europe
Reports suggest that Tesla is preparing to launch a “full-stack in-house insurer” in Europe, initially in the UK, based on the Companies House listing and a job advert from the automaker.
Tesla recently posted a job advertisement for a Legal Counsel position for the European market. The automaker indicated that the work would be based at its London HQ.
As for the roles, the Legal Counsel will be responsible for developing and managing Tesla Insurance’s in-house legal function as it conducts cross-border operations in Europe and negotiates the challenging legal and regulatory environment of the insurance industry there.
CEO Elon Musk explained the challenges in launching the insurance business at the company’s 2021 Annual Meeting of Shareholders, stating that regulatory requirements vary by state.
“It was, like, designed to be hard. There’s a zillion applications and you have to wait for a bunch of time. Then, the states also have different regulations, so you aren’t legally allowed to offer the same insurance in every state. So you’ve got to adjust the software to be different [in] every state. It’s basically very complicated.”
Tesla CEO Elon Musk
Furthermore, the automaker reportedly filed paperwork with Companies House to establish a UK office for its Malta-based Tesla Insurance Europe.
Tesla CEO Elon Musk’s previous statements suggested that the European launch of Tesla Insurance might occur as early as 2023. That said, the company is sourcing a qualified candidate for Legal Counsel who will be essential in helping the business manage the special opportunities and challenges of the European insurance industry. The individual is also expected to fulfill Tesla’s commitment to redefining the insurance client experience.
Tesla Insurance to focus on Europe after US
Tesla to focus on European expansion after establishing its insurance business in the US.
Tesla currently operates its insurance business in 12 US states. It must also be noted that the automaker has no plans to stop there as it also awaits approval in other states. Furthermore, Tesla also revealed plans in 2021 to penetrate the European insurance market after it has expanded in the US.
Notably, Tesla Insurance utilizes real-time driving behavior in calculating the drivers’ monthly insurance rate, carefully considering their Safety Score.
Therefore, the higher the Safety Score, the less the owner pays each month. This concept promotes safer driving because it directly impacts how much insurance costs for consumers. Based on the Safety Score, Tesla continuously modifies the amount of each owner’s monthly installment.
That said, the safest drivers might achieve savings of up to 60%, but the ordinary driver could only expect to save 20% to 40%.
Tesla provided the following illustration to demonstrate how the premium can vary each month depending on your score:
| Month | Safety Score From Trips* | Safety Score for Rating | Monthly Premium |
| 1 | 95 | 90 | $121.00 |
| 2 | 88 | 90 | $121.00 |
| 3 | 92 | 95 | $97.00 |
| 4 | 98 | 88 | $130.00 |
| 5 | 96 | 92 | $111.00 |
| 6 | 93 | 98 | $83.00 |
Notably, established businesses frequently charge higher insurance rates for Tesla. That said, Tesla aims to lower the cost of insurance for its customers by providing its own product, which will lower the entire cost of ownership for its EVs.
