Tesla (TSLA) has launched a new technology to monitor driving behavior and reward “careful” drivers with lower insurance premiums. The real-time driver behavior monitoring will release a Safety Score based on five metrics: hard braking, aggressive turning, unsafe following distance, forced Autopilot system disengagement, and the number of forward-collision warnings per 1,000 miles.
All Tesla drivers in Texas who sign up for the insurance program will start with a baseline score of 90 out of 100. Assuming that the rating doesn’t drop below 90, Tesla owners are looking at paying premiums in the price range of $80 to $130. Considering that the average price for car insurance in the US is about $140 per month, the deal appears to be pretty convenient.
why it matters
Elon Musk may have finally found a way to have the two industries not only coexist but also work together to make roads safer for drivers. Also, consider that for the first time, insurance will no longer care about age, gender, or driving records — the only thing that matters is the Driver's Score.