Israel and Tesla

 Another step on the way to Israel: Tesla is in contact with officials in the insurance industry

 The company operates an independent insurance model in the United States, and is now considering expanding the service to additional markets.

Tesla continues to prepare for entry into the Israeli market. "Globes" has learned that the company has been in contact with insurance and local finance officials in recent weeks. As far as is known, its representatives met, among other things, with the "Bituach Yashir" group, although apparently not with the direct insurance company it owns. Tesla seems to be investigating the possibility of establishing a unique insurance model for the company's vehicle, but the details are still unclear.

Tesla has an independent insurance company, which began operating in August 2019 for its customers, initially in California only. The company offers a unique insurance model based on the analysis of information flowing through the cloud from the vehicles using algorithms, which calculate the costs according to the vehicle owner's driving profile, risk level, driving areas, etc.

New Tesla owners can join insurance through the company’s app, and it is claimed that they can get an online quote within minutes. The price is updated as more information about the use of the vehicle is accumulated. According to US reports, the average cost of insurance is much lower than that of Tesla car insurance with outside companies.

It was recently reported that the company aims to expand its insurance model to all markets in which it operates, with the first phase talking about China and Europe. The company recently recruited senior executives from the insurance industry for its centers in Berlin and London.

Challenges for traditional insurance companies

Tesla's vehicles pose a challenge to conventional insurers in two areas. The first is the fact that it is an electric vehicle, which is only cared for by the company itself, and therefore the costs of maintenance and repairs are centrally controlled.

The second challenge is related to the company's advanced technology, due to the autonomous system, TESLA PILOT, which offers a relatively high degree of autonomy and driving without driver involvement. In Israel, for example, the whole issue of car insurance with high degrees of autonomy is still completely open, even though vehicles with systems are already imported into the country, which allow travel with minimal driver involvement.