Tesla Telematics Program Review 
Tesla insurance was founded in 2019 to reduce the higher than average rates Tesla drivers pay for car insurance. Currently only available in California with plans to expand in the future, our Tesla telematics program review predicts Tesla customers may save up to 30% each month after the Tesla telematics module reaches national markets. In addition, rather than paying a fixed monthly rate, your premiums change based solely on the driving data gathered and shared by your smart car.
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UPDATED: Aug 6, 2021
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Interest in a Tesla telematics program review peaked after the company’s 2020 second-quarter earnings call.
At that time, Tesla CEO Elon Musk announced plans to shake up the car insurance industry by expanding Tesla car insurance and basing monthly rates solely on telematics data.
Tesla insurance may still only be available in California, but all vehicles from this company use a Tesla telematics system.
Keep reading to learn more about how the Tesla telematics modules work and discover if this advanced technology is right for you.
After learning about affordable Tesla telematics car insurance rates, remember to enter your ZIP code into our free tool above to compare accurate quotes from the top providers near you.
What is the Tesla telematics program?
You might think Tesla’s front trunk storage solution, the frunk, is the peak of this vehicle’s technological advancements.
However, Tesla also uses advanced technology known as telematics to improve your driving experience.
Telematics refers to technology gathered using long-distance computer transmission. In cars, that information includes driving speeds, hard-braking events, time of day, and mileage.
But the Tesla analytics are incredibly advanced and track details like your battery’s charge and if your vehicle needs any updates.
Therefore, for most Tesla drivers, the telematics program adds to your user experience.
But in the future, this groundbreaking Tesla computer science may also provide you with more affordable Tesla telematics car insurance quotes.
Teslas are some of the safest vehicles, but Tesla car insurance rates are higher than average because these cars are expensive to replace and repair.
Often a specialized mechanic is required, and you must buy parts from Tesla itself.
Therefore, Tesla drivers pay 30% more on average for car insurance than people who drive economy vehicles.
To address these high rates, the company created Tesla Insurance in 2019. However, it’s currently only available in California.
Using anonymous telematics data to calculate car insurance rates monthly cut insurance costs for Tesla drivers in California by 20% to 30%.
According to the National Association of Insurance Commissioners (NAIC), the first company to use data like this for usage-based car insurance programs (UBI) was the Progressive car insurance company.
But because there’s Tesla autopilot technology included in all vehicles produced by this brand, the collected data can also easily be used to calculate insurance costs entirely on your driving habits.
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How does the Tesla telematics program work?
Tesla vehicles, including the Tesla Model S and Model 3, all use telematics technology. Most models use the Tesla autopilot system, Smart Summon, Autopark, and a full self-driving program.
Rather than relying on just a mobile app or plug-in device to gather and share driver data, Tesla vehicles use a computer located in the actual car itself.
However, there is also a Tesla mobile app that drivers should use to optimize their driving experience.
The computer connects to the vehicle’s onboard diagnostic system, tracking its performance and relaying that information back to the company for analysis.
For example, data about your mileage, speed, and route is collected when you use the self-driving feature.
A forward-facing radar collects information about what is surrounding your vehicle, sensitive enough to detect objects, weather conditions, and even dust.
Engineers or technicians use this and other collected data to evaluate how efficiently your car is driving, leading to better diagnostics and vehicle maintenance.
For example, if your Tesla isn’t driving the total 335 miles per charge, telematics data can help your engineer determine what the actual problem is.
According to Tesla’s Chief Financial Officer, Zachary Kirkhorn, the readily available data can also be used to calculate monthly car insurance prices based only on how you drive.
Previously, Tesla announced plans to roll out Tesla Insurance nationally by the end of 2021.
For Tesla drivers, this means telematics programs can potentially help you save money on car insurance in the future.
Until then, only Californians can purchase coverage from Tesla Insurance, the only Tesla telematics car insurance company.
What driving habits does the Tesla telematics program track?
In terms of general telematics data, Tesla gathers a lot of information about individual vehicles.
According to the company website, data gathered by the telematics programs include:
- Service history
- Vehicle usage information
- Safety event camera recordings
- Infotainment systems settings information
- Mobile app usage
On the company website, Tesla claims to use aggregated anonymous telematics data to inform Tesla Insurance rates.
But otherwise, individual vehicle data, including GPS and camera footage, is collected but not used in any way.
However, there are plans to incorporate this and more data types over time to expand the Tesla product offerings, including car insurance.
You can request a copy of your collected data on the Tesla website.
Tesla Telematics Program Review: The Bottom Line
If you drive a Tesla, the company uses telematics technology and collects information about your driving habits.
Currently, technicians use the data to help diagnose any issues with your vehicle. It is also a necessary part of the advanced self-driving and autopilot features Teslas are known for.
However, in the future, Tesla also plans to use telematics to offer you more accurate car insurance rates.
Now that you’ve learned you can only buy Tesla telematics car insurance in California, find the right coverage for you by entering your ZIP code into our free rate tool below.