Tesla Telematics Review (2021)

Tesla telematics is part of Tesla vehicle programming and collects driving data on all Tesla drivers. Tesla collects a variety of data on driver behavior, vehicle operation, and personal facts. A subset of this data is used to calculate the driver's likelihood of getting into a car accident, which is then used to calculate Tesla insurance costs for individual drivers, resulting in tailored insurance rates.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent Brad Larsen

UPDATED: May 2, 2021

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Things to Know

  • Tesla telematics is the foundation for the Tesla insurance product
  • Tesla insurance is only available in California to-date, but there are plans to expand coverage availability nationwide
  • Using Tesla telematics, the company collects extensive personal information on its drivers and uses a subset of this data to calculate individual insurance rates based on an estimated likelihood of the driver getting in a car accident

Are you a Tesla driver? If so, you’re probably aware of the variety of options the company provides (or is planning to provide) to its customers, including Tesla ridesharing, the development of Tesla car insurance using Tesla telematics (which is currently only a California car insurance option), and more.

Today we’re focused on Tesla telematics.

What is it? Can you get Telsa telematics car insurance? How does it compare to other car insurance companies? What are average Tesla telematics car insurance quotes? Is affordable Tesla telematics car insurance available? Does Tesla telematics affect Tesla insurance costs?

Before we get started on this Tesla telematics review, why not take a moment to enter your ZIP code into the free tool on this page to get quotes from car insurance companies in your area?

What is Tesla telematics, and how does it work?

Tesla telematics is the key piece of Tesla’s move to offer insurance to its customers, which is part of its plan to change the way the insurance industry works. Specifically, Tesla has launched an entirely usage-based insurance program using Tesla telematics.

Telematics is already part of the vehicle programming for Tesla, and extensive information is collected on drivers and their driving habits, which can then be used to adjust insurance rates.

This product is a major focus for Tesla at this time. The company is hiring senior data engineers/software engineers for the company’s telematics arm and Tesla actuaries.

Telematics technology collects data about vehicle usage, which insurance companies often use to adjust rates more accurately than using generalized information and risk assessment.

Keep reading to find out exactly what data Tesla collects and how it is used for insurance.

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What data does Tesla collect?

Tesla autopilot data collection is a part of the overall telematics data collection programming in the vehicles. Other data collected that could affect Tesla telematics car insurance rates includes:

  • Safety equipment usage
  • Braking and acceleration
  • Video and data associated with any accidents
  • Speed and odometer information
  • Battery usage and charging

Keep in mind this is not an exhaustive list because the sheer amount of data Tesla collects is extensive.

The downside to the data collection through Tesla telematics is the lack of privacy. This is a widespread concern for telematics associated with usage-based insurance programs, and according to the Insurance Information Institute, some states have enacted laws requiring car insurance companies to disclose what data is collected and how it is stored and used.

However, laws are less clear for Tesla because the data was already being collected before the inception of the company’s insurance branch.

Tesla Telematics: The Bottom Line

When you’re looking to buy Tesla telematics car insurance, the first requirement is that you drive a Tesla. Tesla insurance is currently only available in California, though the company does plan to branch out nationwide.

Tesla telematics is already installed in all Tesla vehicles. It tracks a variety of data used to calculate the likelihood that an individual driver will get in an accident or other traffic incident. This is then used to calculate insurance rates specifically based on the driver’s unique risks to Tesla.

Now that you’ve read our Tesla telematics review, why not use your ZIP code in our free tool to start comparing rates from car insurance companies in your area today?

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