Through the partnership, InsureMyTesla will offer to replace damaged Teslas that are deemed a total loss within the first year, among other benefits. According to Tesla, the average cost of insuring their car is 5% lower than other premium autos.
The launch of InsureMyTesla in the U.S. comes after Chief Executive Officer Elon Musk took issue with reports earlier this year that insurer AAA was raising rates to insure Tesla vehicles in some markets, citing high claim frequencies and costs. Musk disputed the insurer’s analysis, saying during Tesla’s annual meeting in June that the automaker’s own internal study showed the average cost of insuring a Model S or Model X was about 5 percent lower than for other premium vehicles.