Why can Tesla lead the car insurance market in a possible future scenario? Here are the keys.
Tesla, in about a decade, has managed to be a benchmark in the market. The increase in the commitment to the electric car is the main reason behind the growth of this company. However, there is much more than a simple winning strategy in terms of technology. The leadership of the company whose owner is Elon Musk a competitive advantage has been maintained that has remained unscathed over the years.
This speaks volumes for the number of innovations Tesla has brought to the industry. At the end of the day, it is an industry whose entry barriers are enormous due to the high cost of investment required. The electric car company has managed to carve out a niche that, month after month, has made you billions of dollars at the quotation level. Much more than some of the leading brands in the industry! Now, is it enough?
The company has become one of the firms leading the transition to more sustainable mobility. The development of electrical mechanics has great potential and, without a doubt, they are one of its main hallmarks. However, for understand Tesla’s competitiveness, you have to go much further. The company’s infotainment system is differential, as is its ability to incorporate new alternative solutions.
One of the most outstanding is directly related to the big data. The collection of information by the brand allows obtaining all kinds of identifying data of the owner of the vehicle. Thanks to its analysis, it is possible to discover to what extent we are facing a specific driver profile. This can be used, for example, to determine how likely the user is to have an accident.
This is just what Tesla is already offering through its insurance policy division. You have a plan for set quotas that are automatically renewed every month depending on the driving style that has been practiced. Here are some of the keys to understanding this curious way of setting prices in the insurance market.
Tesla as a benchmark in the insurance policy market
Can Tesla be able to enjoy the insurance policy market at will? The truth is that yes. What started as a pilot program has led to the realization of an important campaign to attract more company users. The main objective of this policy is to obtain data by Tesla and, of course, to make it easier for the user when it comes to having a cheaper insurance fee.
The operation is very simple, since it is an algorithm that is in charge, monthly, of updating the insurance policy. The marked price is set according to the style of driving and a number of other parameters. Thanks to the measurement of this data, can be obtained with a more reliable criterion aggressiveness or prudence in driving by the driver, which has a direct impact on the price of the premium.
Thanks to this measure, if you want to pay less next month, you should drive more placidly and, of course, respecting all present security measures on public roads. The main objective of this proposal is to reduce the cost for the user and, of course, increase valuable information for Tesla. Now, can a product of these characteristics be a danger for the main insurance companies in the market?
Tesla as a benchmark in a market far from conventional automotive
On multiple occasions Tesla has been talked about as a company that is linked to sustainability in general terms. Certainly its branches go beyond marketing and production of electric cars. The processing of data and, of course, obtaining a profit with it, is another of its sources of income to be exploited in the coming months.
At present, at the time of fixing an insurance contract there are a number of great challenges. How do you know what a driver is like if you have no previous history of accidents or traffic tickets? Establishing a policy based on the age or color of the vehicle, among other aspects, is usually not reliable enough. Incorporating the Tesla proposal is much more appropriate. The problem? Insurers do not have this information.
We will have to wait a while to check how companies in the insurance market they manage to get this kind of data from manufacturers. What seems clear is that, sooner or later, they will have to loosen the checkbook to enjoy more information to establish a consumer pattern.
Related topics: Motor
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