Tesla Insurance is set to expand its coverage to two new U.S. states, according to recent regulatory filings. The filings indicate that Tesla Property & Casualty is planning to launch auto insurance programs in Indiana and Tennessee, with a proposed effective date of March 1, 2026. This move follows the recent launch of Tesla Insurance in Florida, marking the company’s first multi-state expansion in years.
One of the standout features in the new filings is a Full Self-Driving (Supervised) discount. Tesla plans to assess the percentage of a driver’s monthly mileage completed using FSD, with insurance discounts adjusted monthly based on this data. This new incentive will complement Tesla Insurance’s existing telematics-based pricing model, which relies on the company’s Safety Score system.
The Safety Score evaluates various driving behaviors such as hard braking, aggressive turning, speeding, following distance, and overall mileage. These factors are reassessed every 30 days, allowing premiums to fluctuate based on the customer’s driving habits. The introduction of an FSD-based discount further aligns Tesla Insurance pricing with the automaker’s driver-assistance technology.
The expansion into Indiana and Tennessee comes shortly after Tesla Insurance entered the Florida market, its first new state in over three years. Florida’s high insurance premiums and the departure of traditional insurers make it a significant market for Tesla Insurance. The company currently operates in Virginia, Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, and Utah.
However, Tesla Insurance faces regulatory challenges in certain regions. In California, for instance, insurers are prohibited from using real-time telematics or driving behavior data to determine premiums, limiting Tesla’s use of its Safety Score model. Additionally, Tesla Insurance has encountered legal issues in the past, including a class action lawsuit alleging premium overcharges.
If the proposed timelines hold, the expansion into Indiana and Tennessee could kickstart a broader insurance expansion strategy for Tesla in 2026. Stay tuned for updates on Tesla Insurance’s continued growth and evolution in the insurance market.