According to the National Highway Traffic Safety Administration (NHTSA), crash rates for Tesla vehicles have dropped by 40% since Autopilot was introduced. Tesla is already selling its own car insurance in Australia and Hong Kong - believing that traditional premiums do not reflect better safety - and the company may eventually include insurance in the final price of the car.
Tesla is forcing insurance agencies to seriously consider how policies will change as cars become safer due to advances in self-driving technology. The latest example is Farmers Insurance partnership with Tesloop, a small ride-sharing service that uses Tesla cars to transport customers between cities in Southern California. Farmers wrote a new auto policy for Tesloop that slashes the service’s previous insurance costs by 25% by reducing its risk premium, Tesloop CEO Rahul Sonnad told Business Insider. Sonnan, however, declined to give exact figures and state Tesloop’s previous insurance provider. The partnership gives Farmers a small test case to see what kind of insurance policies can be designed around autonomous technology, Mariel Devesa, Farmers’ head of production innovation, told Business Insider.
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