Tesla Insurance concluded the fiscal year of 2023 by amassing nearly $500 million in written premiums, signifying an impressive 115% year-over-year increase in premiums.
The news follows on from previous reports stating that Tesla Insurance was underperforming, and an investigation by Reuters revealed that understaffing issues within Tesla have resulted in some customers facing extended wait times, ranging from weeks to months, for compensation, all while continuing to make payments on their damaged vehicles.
Operating primarily in California, Ohio, Arizona, and Illinois, Tesla Insurance Services operates through a fronting arrangement with State National. Under its umbrella, the company saw a notable surge, with $387 million in written premiums, marking a substantial 78% year-over-year growth.
Tesla Insurance is distributed through the company’s two licensed carriers, Tesla Property & Casualty and Tesla General Insurance. The premium breakdown by state for 2022 and 2023 is provided below. It is important to highlight that Tesla Insurance’s availability was more limited in 2022 compared to 2023.
This surge in premium figures has firmly established Tesla Insurance Services as the leading producer for State National, showcasing its burgeoning influence in the insurance domain. The robust growth underscores Tesla’s expanding footprint in the insurance sector, emphasizing its strategic positioning and market strength.
According to reports, in 2023, Tesla Property & Casualty and Tesla General Insurance collectively reported an underwriting loss amounting to $30 million. Tesla General Insurance, providing coverage in NV, OR, and VA, recorded a combined ratio of 145% for the same period. Meanwhile, Tesla Property & Casualty, serving clients in CO, MD, MN, TX, and UT, posted a combined ratio of 139.4% during the fiscal year.
