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Tesla Telematics Review: How Much Can You Save (2021)

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Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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UPDATED: May 26, 2021

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Key Takeaways

  • Tesla has announced they will soon be offering car insurance discounts based on telematics
  • Telematics monitor vehicle performance and driver behavior
  • Tesla currently only offers car insurance in California

In 2020, Tesla founder Elon Musk announced a Tesla telematics program to help lower the price of Tesla car insurance rates. Since 2019, Tesla has offered Tesla insurance to help customers save on their Tesla car insurance.

Which car insurance company is cheapest for Tesla owners? The new Tesla telematics service promises to provide the cheapest car insurance for Tesla customers.

While the Tesla telematics system has yet to be realized, customers will be eager to know how this program uses onboard diagnostics to help lower car insurance rates.

Keep reading below to learn what telematics are, how Tesla telematics work, and how they can save you money on car insurance.

Enter your ZIP code into our free comparison tool above to find affordable Tesla telematics car insurance near you.

What are telematics?

Generally speaking, telematics in a vehicle is the ability of the vehicle to provide GPS and diagnostics services to help improve the vehicle’s performance.

Tesla telematics are considered to be some of the best telematics currently on the market. The Tesla telematics system monitors everything from acceleration and braking patterns, battery charges, and the availability of new updates.

Using this telematics information, Tesla can gather data on how their cars are performing and identify any weaknesses. They then use this information to inform updates and improvements along the way.

How do Tesla telematics work?

So how do Tesla telematics work? Essentially, the Tesla telematics module installed in every Tesla car connects to the onboard diagnostics system and monitors the vehicle’s performance.

Every time you brake, accelerate, charge your battery, or navigate using the onboard GPS system, the Tesla telematics module records these behaviors. The Tesla telematics control unit then relays this information back to the company for analysis.

Once the information is received by Tesla, engineers can look at the data and determine how efficiently the vehicle is performing.

They can then improve the designs of newer vehicles ensuring that future Teslas achieve optimum performance.

How can telematics help me save on car insurance?

So how do telematics help save on car insurance? Well, in the same way that telematics can be used to improve a car’s performance, those same telematics can be used to determine how safely you drive. This can lead to discounts on insurance for Tesla vehicles.

Other companies such as Progressive have been using telematics for a while. They install the telematics device in your car and then the device monitors your driving ability, such as braking and accelerating.

If you brake too suddenly or speed too often, telematics devices will pick up on these behaviors. If you drive poorly, then the insurance company won’t lower your rates. Even worse, they might raise them.

However, if you drive safely and obey traffic laws the telematics will pick up on this. Depending on how safely you drive, the insurance company will lower your rate accordingly.

The Tesla telematics system that Elon Musk has proposed would do just that — monitor driver behavior and award discounts based on safe driving.

This telematics program along with Tesla insurance promises to provide huge savings for Tesla customers.

Tesla telematics car insurance quotes will only be available through Tesla itself. Also, it is not yet known how much you can save on your Tesla telematics car insurance rates.

Now that you know how Tesla telematics insurance works, start shopping today. Enter your ZIP code into our free comparison tool below to buy Tesla telematics insurance from providers in your area.

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