For many decades, cars have had safety ratings that help both customers and insurers define what the risk would be. Insurers then ask lots of questions about the driver that helps define the aggregated risk for the individual.
But this all changes in the world of electric vehicles, which crash less, especially with AutoPilot (up to 40% less in the case of Tesla).
Tesla's partnership with Liberty Mutual is a smart move but something that almost all manufacturers offer - usually based on volume of policies, co-branding and dedicated/personalised offers based on the specific product.
The real win will come when, as the article mentions, insurance is simply bundled into the price of a future vehicle - entirely removing the process for quote and buy. Does this mean insurers will no longer have customer facing brand and it's all in the name of the vehicle manufacturer? And how will this impact the claims process?
The National Highway Traffic Safety Administration found that crash rates for Tesla vehicles have plummeted 40% since Autopilot was first installed. Electric vehicles also generally require less maintenance then traditional, gas-powered vehicles. "If we find that the insurance providers are not matching the insurance proportionate to the risk of the car then if we need to we will in-source it," Tesla CEO Elon Musk said in February.