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The fact that there exist other reason to use a 3P insurance company doesn't really matter. At the end of the day, if the existence of a Tesla insurance remove
by gpt5 5y ago
The fact that there exist other reason to use a 3P insurance company doesn't really matter.
At the end of the day, if the existence of a Tesla insurance removes a portion (not all) of low risk drivers from the insurance market, the remaining drivers would be higher risk. The insurance company doesn't care about the mechanism that causes it, at the end of the day the collision rate will stabilize into a new higher rate, together with the associated insurance rate.
- seanmcdirmid 5y agoInsurance companies are already over pricing Tesla coverage, which is why Tesla is bothering to get into this market at all. The end effect here might just be the rate they are offering now becoming justified as Tesla plucks all the lower risk fruit away from them.