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Yesterday Michael mentioned Tesla's new insurance service in his review of their third quarter results. Here in South Africa we are lucky to have very innovative short-term insurers. Their premiums are risk-based, taking account of the way that you drive. In fact, Discovery sold a portion of their stake in a car-tracking technology business to Softbank for nearly a billion Rand in 2019.
Tesla are now launching the same product, using software that tracks real-time driving behaviour. With on-board computers that manage the entire car, this was a no brainer, and does not require the installation of a separate tracking device.
Your driving safety score will determine your premium. The car owner can also see their rating update on the Tesla app. Over time you build an average score; see the image below of how it could work.
Insurance is a very high-margin business and this could be a big profit driver for Tesla. It's also a good example of the extra products that Tesla can on-sell to their growing client base. Feels a lot like Apple right?
