Automotive and energy company Tesla has announced it has launched its own car insurance.
CEO Elon Musk previously mentioned the company would be offering its own insurance back in April.
According to The Verge Tesla describes the insurance as a “competitively priced insurance offering designed to provide Tesla owners with up to 20 percent lower rates, and in some cases as much as 30%.”
At first it will only be available in California, but it is expected to “expand to additional US states in the future,” the company says, though no timetable was given.
In a blog post about the insurance Musk said, “We essentially have an … information arbitrage opportunity where we have direct knowledge of the risk profile of customers. And then if they want to buy Tesla insurance, they would have to agree to not drive the car in a crazy way. Or they can, but then their insurance rates are higher.”
The Verge reports that Tesla promised existing customers in California the ability to purchase an insurance policy in “as little as one minute” on its website. New customers can request a quote, too.