Tesla General Insurance, which operates in Nevada, Oregon, and Virginia, saw its written premiums rise to $22.3 million, marking a 105% increase compared to the same period last year. However, the carrier posted a net underwriting loss of approximately $4 million, resulting in a combined ratio of 121%.
Meanwhile, Tesla Property & Casualty, providing coverage in Colorado, Maryland, Minnesota, Texas, and Utah, recorded $74 million in written premiums, reflecting a remarkable 197% year-over-year growth. Despite this surge, the carrier faced a net underwriting loss of around $17.6 million, leading to a combined ratio of 127%.
These results follow a turbulent year for Tesla’s insurance division, marked by significant growth, new partnerships, legal disputes, and product recalls. Tesla’s insurance business ended fiscal 2023 with nearly $500 million in written premiums, a 115% year-over-year increase. Premium volumes surged by 116%, with California, Ohio, and Arizona contributing $387.2 million, up from $217.6 million in 2022. The company also writes substantial premiums on its own paper in Texas, Virginia, and Maryland.
In addition to these financial achievements, Tesla has introduced several key discounts aimed at making its insurance offerings more competitive. These include a Multi-Car Discount, automatically applied when insuring multiple vehicles under the same policy, and a Defensive Driving Course Discount available in select states for drivers over 55 who have completed an approved accident prevention course. Other discounts include those for Tesla employees, vehicles equipped with anti-theft devices, and Tesla cars with qualifying autonomous features.
The quarter also saw Tesla grappling with legal disputes over customer service and claims handling, and a significant recall of 3,878 Cybertrucks due to a faulty accelerator pedal pad that posed a risk of unintended vehicle acceleration, according to the U.S. National Highway Traffic Safety Administration (NHTSA).
On a positive note, Tesla expanded its global reach by forming a new partnership with Zurich Australia. Announced last month, Zurich has become the preferred electric vehicle insurer for Tesla customers in Australia, offering the “InsureMyTesla” product through Tesla’s app. This partnership reflects Tesla’s ongoing efforts to align with industry leaders to enhance its services and support the growing electric vehicle market.
Despite the challenges, Tesla’s insurance division continues to demonstrate substantial growth and innovation, positioning itself as a key player in the evolving landscape of electric vehicle insurance.
