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Tesla’s Safety Score system will be key to in-house insurance’s affordability
Tesla’s Safety Score system may still be in its early stages, but it seems to be a key part of some of the company’s upcoming products. This is particularly true for the Safety Score system, which was recently launched ahead of FSD Beta’s expansion. As observed by Tesla owners who signed up for the company’s in-house insurance in Texas, their rates would be directly tied to their respective Safety Scores.
This is something that would be expected as Tesla expands its in-house insurance service to other states, and perhaps even abroad. As mentioned by CFO Zachary Kirkhorn during the recently-held Q3 2021 earnings call, insurance costs are generally not the fairest thing in the market, with low-risk owners typically overpaying on their rates to subsidize drivers who were riskier on the road. Kirkhorn explained that the car insurance market, in its current state, uses limited data. Fortunately, data just happens to be one of Tesla’s biggest strengths.
“We entered the insurance market kind of unintentionally, I would say. Our customers were coming to us, complaining that the price of traditional insurance was too high and it was reducing the affordability of a Tesla… As we started to do more research, essentially, the tools by which the insurance is traditionally calculated are optimized based upon the existing data, but the existing data is limited. So there’s a focus on things like marital status or age or other attributes like that. Accident history is a good one, etc.
“But what essentially happens here is customers who are low risk and don’t actually file many claims end up overpaying on their insurance relative to their cost. That overpayment then goes to riskier customers who are essentially being subsidized. And, you know, as we looked at this and we looked at the data, we thought this just doesn’t seem like it’s fair. At Tesla, because our cars are connected, because they are essentially computers on wheels, there’s enormous amounts of data that we have available to us to be able to assess the attributes of a driver who’s operating that car and whether those attributes correlate with safety because we do get a signal when a car has been in an accident,” the CFO remarked.
Tesla then proceeded to analyze literally billions of miles of driving history from its fleet, and from this study came a model that was able to predict with decent accuracy the probability of collisions over time. But this was just the beginning. Tesla has learned and is continuing to learn a lot more about its fleet, particularly as the company rolled out its Safety Score system and the FSD Beta Enrollment Program.
“We have almost 150,000 cars currently using a safety score. And I believe the latest data is over 100 million miles of driving. So we’ve been able to go back and analyze that data. And we’ve learned two things coming from that. The first is that the probability of collision for a customer using a safety score versus not is 30% lower. It’s a pretty big difference. It means that the product is working and customers are responding to it. The second thing that we’ve looked at is what is the probability of collision based upon actual data as a function of a driver safety score.
“And that is aligning with our models. Most notably, if you’re in the top tier of safety compared to lower tiers, there’s multiple X difference in probability of collision based upon actual data. So this is a very new and very exciting frontier for us. I know that was long-winded, but I — we spent a lot of time on this and we put a lot of thought into it… So we’re very excited about it. We’re excited about individual risk-based pricing. We’re excited about the ability for folks to become safer and, as a result, save money. And it feeds into our priority of a company — of building the safest products in the world,” Kirkhorn concluded.
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Tesla is dominating in the United Kingdom so far through 2025, and with about two weeks left in the year, the Model Y and Model 3 are leading the way.
The Model Y and Model 3 are the two best-selling electric vehicles in the United Kingdom, which is comprised of England, Scotland, Wales, and Northern Ireland, and it’s not particularly close.
According to data gathered by EU-EVs, the Model Y is sitting at 18,890 units for the year, while the Model 3 is slightly behind with 16,361 sales for the year so far.
The next best-selling EV is the Audi Q4 e-tron at 10,287 units, lagging significantly behind but ahead of other models like the BMW i4 and the Audi Q6 e-tron.
GOOD NEWS 🇬🇧 Tesla is absolutely crushing the UK electric vehicle market in 2025 💥
The numbers are in, and the dominance is clear. With an impressive amount of 42,270 vehicles delivered year-to-date, the brand now commands a solid 9.6% market share of the total auto market 🆒… pic.twitter.com/dkiGX9kzd0
— Ming (@tslaming) December 18, 2025
The Model Y has tasted significant success in the global market, but it has dominated in large markets like Europe and the United States.
For years, it’s been a car that has fit the bill of exactly what consumers need: a perfect combination of luxury, space, and sustainability.
Both vehicles are going to see decreases in sales compared to 2024; the Model Y was the best-selling car last year, but it sold 32,610 units in the UK. Meanwhile, the Model 3 had reached 17,272 units, which will keep it right on par with last year.
Tesla sold 50,090 units in the market last year, and it’s about 8,000 units shy of last year’s pace. It also had a stronger market share last year with 13.2 percent of the sales in the market. With two weeks left in 2025, Tesla has a 9.6 percent market share, leading Volkswagen with 8 percent.
The company likely felt some impact from CEO Elon Musk’s involvement with the Trump administration and, more specifically, his role with DOGE. However, it is worth mentioning that some months saw stronger consumer demand than others. For example, sales were up over 20 percent in February. A 14 percent increase followed this in June.
News
Tesla Insurance officially expands to new U.S. state
Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.
Tesla Insurance has officially expanded to a new U.S. state, its thirteenth since its launch in 2019.
Tesla has confirmed that its in-house Insurance program has officially made its way to Florida, just two months after the company filed to update its Private Passenger Auto program in the state. It had tried to offer its insurance program to drivers in the state back in 2022, but its launch did not happen.
Instead, Tesla refiled the paperwork back in mid-October, which essentially was the move toward initiating the offering this month.
BREAKING: Tesla Insurance has just officially launched in Florida.
This is the first new state to receive @Tesla Insurance in more than 3 years. In total, Tesla insurance is now available in 13 U.S. states (map in thread below of all the states).
Tesla Insurance in Florida uses… pic.twitter.com/bDwh1IV6gD
— Sawyer Merritt (@SawyerMerritt) December 17, 2025
Tesla’s in-house Insurance program first launched back in late 2019, offering a new way to insure the vehicles that was potentially less expensive and could alleviate a lot of the issues people had with claims, as the company could assess and repair the damage itself.
It has expanded to new states since 2019, but Florida presents a particularly interesting challenge for Tesla, as the company’s entry into the state is particularly noteworthy given its unique insurance landscape, characterized by high premiums due to frequent natural disasters, dense traffic, and a no-fault system.
Annual average premiums for Florida drivers hover around $4,000 per year, well above the national average. Tesla’s insurance program could disrupt this, especially for EV enthusiasts. The state’s growing EV adoption, fueled by incentives and infrastructure development, aligns perfectly with Tesla’s ecosystem.
Moreover, there are more ways to have cars repaired, and features like comprehensive coverage for battery damage and roadside assistance tailored to EVs address those common painpoints that owners have.
However, there are some challenges that still remain. Florida’s susceptibility to hurricanes raises questions about how Tesla will handle claims during disasters.
Looking ahead, Tesla’s expansion of its insurance program signals the company’s ambition to continue vertically integrating its services, including coverage of its vehicles. Reducing dependency on third-party insurers only makes things simpler for the company’s automotive division, as well as for its customers.
News
Tesla Full Self-Driving gets sparkling review from South Korean politician
“Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about.”
Tesla Full Self-Driving got its first sparkling review from South Korean politician Lee So-young, a member of the country’s National Assembly, earlier this week.
Lee is a member of the Strategy and Finance Committee in South Korea and is a proponent of sustainable technologies and their applications in both residential and commercial settings. For the first time, Lee was able to utilize Tesla’s Full Self-Driving technology as it launched in the country in late November.
Her thoughts on the suite were complimentary to the suite, stating that “it drives just as well as most people do,” and that “it already feels like a completed technology.”
드디어 오늘, 서울에서 테슬라 FSD 체험 했습니다.
JiDal Papa님의 모델S 협찬에 힘입어^^ 파파님 정말 감사합니다.
국회 -> 망원시장 -> 홍익대 -> 국회 복귀 코스였고요.
이미 무인 로보택시를 타봐서 그런지 신기함은
덜했지만, 웬만한 사람만큼 운전을 잘하네요.이미 완성된 기술이라고… pic.twitter.com/8pAidHBpRG
— 이소영 국회의원 (Soyoung Lee) (@im_soyounglee) December 17, 2025
Her translated post says:
“Finally, today I got to experience Tesla FSD in Seoul. Thanks to the Model S sponsored by JiDal Papa^^, I’m truly grateful to Papa. The route was from the National Assembly -> Mangwon Market -> Hongik University -> back to the National Assembly. Having already ridden in an unmanned robotaxi, the novelty wasn’t as strong for me, but it drives just as well as most people do. It already feels like a completed technology, which gives me a lot to think about. Once it actually spreads into widespread use, I feel like our daily lives are going to change a lot. Even I, with my license gathering dust in a drawer, don’t see much reason to learn to drive a manual anymore.”
Tesla Full Self-Driving officially landed in South Korea in late November, with the initial launch being one of Tesla’s most recent, v14.1.4.
It marked the seventh country in which Tesla was able to enable the driver assistance suite, following the United States, Puerto Rico, Canada, China, Mexico, Australia, and New Zealand.
It is important to see politicians and figures in power try new technologies, especially ones that are widely popular in other regions of the world and could potentially revolutionize how people travel globally.
Tesla dominates in the UK with Model Y and Model 3 leading the way
Tesla Insurance officially expands to new U.S. state
