There’s a new insurance option for Tesla owners in the UK. It might save you money, at least those of you who don’t put a lot of miles on your car. Reducing operating costs is everyone’s goal.
By Miles has an economical pay-by-the-mile option designed for drivers who drive less than 7,000 miles a year. The concept is simple: the less you drive, the less you pay. The company typically uses ‘black boxes’ and a mobile app to track vehicle mileage. Drivers pay accordingly.
Teslas are already ‘connected cars.’ By connecting to a Tesla account, the By Miles app directly accesses the car’s driving data. No need to use an aftermarket device.
The Future of Insurance?
James Blackham, co-founder of By Miles, says the insurance industry needs to “catch up and launch policies as smart as the cars themselves.”TechCrunch Steve O’Hear / December 9, 2019
They absolutely do.
Risk assessment directly impacts an insurance company’s bottom line. If they can assess their risk based on your actual driving behavior as well as your historical driving records, they can charge you accordingly. Lower prices make them more competitive in the marketplace. Or, applying the knowledge tightens their premium-to-accident payout ratios and improves their profit margin.
Expect more competition in the insurance space!
A Tesla insurance option has been part of Elon’s plan for several years. Traditional car statistics don’t apply to Teslas, literally the safest cars on the road. Rates charged by the traditional companies are inflated. Lower Tesla insurance premiums would be another selling point. It’s now available in California, and hopefully, rolls out to the rest of the US soon.
Is ALL driving information shared?
Exactly what driving data is available to companies like By Miles from Tesla? Don’t know. Obviously, owners may not want to share all their driving data with their insurance company… some information owners may not want their insurance companies to know about at all!
The importance of this tech and the information it generates goes beyond use in the insurance industry. It’s a product to be collected and sold to other businesses, just like users’ smart phone and Internet browsing history. Advertisers will want to target advertising using your personal information and driving habits.
The reality is, access to smart car information has economic value. It can and will be used or sold for business purposes.