Tesla Insurance has officially expanded into Florida, marking its first foray into a new U.S. state in over three years. This move ends a long period of silence surrounding Tesla’s in-house insurance product, which last expanded to Minnesota in November 2022.
The announcement was made by Tesla enthusiast Sawyer Merritt, confirming that Tesla Insurance is now available for new Tesla buyers in Florida. This brings the total number of states where Tesla Insurance is available to 13.
Florida is a significant addition for Tesla Insurance, as it is one of the largest auto insurance markets in the country and also one of the most expensive. The state has been facing issues such as high premiums, fraud concerns, and insurer pullbacks in recent years. For Tesla, entering Florida presents both a major opportunity and a real-world test for its data-driven insurance model.
Tesla Insurance sets itself apart from traditional auto insurance by placing a heavy emphasis on real-time driving behavior. Premiums are calculated based on various factors, including the specific Tesla model being driven, location, driving frequency, selected coverage, and the vehicle’s monthly Safety Score. This score is determined by the car’s sensors and driving data, with safer driving habits resulting in lower insurance rates.
It is important to note that Tesla Insurance in Florida is currently only available to new Tesla owners. Existing Tesla owners in the state are not yet able to switch over, although eligibility may expand in the future.
Despite its expansion, Tesla Insurance has faced scrutiny in the past, including a class-action lawsuit related to how driving data is used to calculate premiums. This legal challenge may explain why Tesla has been cautious in its approach to expanding the insurance business since its last rollout over three years ago.
However, the launch in Florida indicates that Tesla may be gearing up for broader expansion. With a growing number of Teslas on the road and advanced vehicle telemetry, insurance remains a key focus for the company – particularly in markets where traditional insurers struggle to accurately assess risk.
For now, new Tesla buyers in Florida will have access to Tesla Insurance. The question of whether existing owners in the state will be able to join, and if Tesla Insurance will expand to more states, remains unanswered. Stay tuned for updates on this evolving aspect of Tesla’s business strategy.