16 October 2017Insurance

Tesla partners with Liberty for electric car insurance

Californian automaker Tesla is partnering with Liberty Mutual Insurance to offer an auto insurance  plan designed specifically for its electric cars in the US, Bloomberg News reported on Oct. 13.

The plan made available to US customers is similar to what Tesla owners have been offered in almost 20 countries. Among other benefits, Liberty will offer to replace damaged Teslas that are deemed a total loss within the first year, according to the automaker’s website.

The launch of InsureMyTesla in the US comes after CEO Elon Musk took issue with reports earlier this year that insurer AAA was raising rates to insure Tesla vehicles in some markets, citing high claim frequencies and costs. Musk disputed the insurer’s analysis, saying during Tesla’s annual meeting in June that the automaker’s own internal study showed the average cost of insuring a Model S or Model X was about 5 percent lower than for other premium vehicles.

If a Tesla driver’s insurance goes up, “there is a simple solution,” Musk said. “Change your insurance provider.”

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