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You sort of touch on this, but I think it's pretty obvious that it doesn't make sense to value Tesla's insurance the same way you'd value an independent insuran
by hn_throwaway_99 1y ago
You sort of touch on this, but I think it's pretty obvious that it doesn't make sense to value Tesla's insurance the same way you'd value an independent insurance company. They are an arm of a car company, designed to help them sell cars.
Furthermore, I bet the loss ratio isn't even really comparable to independent insurers. Tesla itself must make some money from their parts that are needed for repairs, not to mention that they are the entire beneficiary of repairs if you use a Tesla service center, so when you factor that in I wouldn't be surprised if Tesla's insurance arm is slightly profitable.
- phonon 1y agoYou make good points, but including underwriting costs, systems and overhead, they must be losing something like 50 cents or more for every dollar of premium they take in (I will assume they have minimal marketing costs.) Insurance is a regulated industry, and the regulators won't allow that indefinitely.