Tesla auto insurance forms get OK'd in Lone Star State

The automaker claims its policies, which are currently available in California, can save Tesla drivers 20%-30%, on average.

This news comes as Tesla moves some of its production to the state, while the automaker’s founder is also rumored to be relocating Texas. (Credit: John Disney/ALM)

The Texas State Insurance Department has approved a revised policy form submitted by Redpoint County Mutual Insurance Co. for a Tesla Insurance Program for private passenger autos. The carmaker currently offers its insurance product in California and is expected to expand into additional states moving forward.

Tesla is not the first automaker to offer insurance, nor is it likely to be the last. In late 2020, GM announced it will be rolling out a product leveraging its OnStar systems.

The Tesla Insurance website claims that its product is competitively priced and designed to provide Tesla owners with an average of 20% and up to 30% lower rates.

Tesla Insurance provides physical damage, bodily injury and liability, among other basic coverages. The company also says it offers “additional financial protection against the theft of the car and damage to the car for events other than traffic collisions.”

Redpoint specializes in private passenger auto coverage written through independent managing general agencies. Documents filed with the Texas Department of Insurance indicate that Tesla’s insurance program will be distributed through Tesla Insurance Services of Texas Inc. and underwritten by Redpoint.

Elon Musk, co-founder, CEO and product architect of Tesla, has moved some of Tesla’s manufacturing operations to Austin, Texas, and Musk himself is said to be relocating to the Lone Star State.

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