Tesla Insurance Services Inc. has removed forward-collision warnings from the list of metrics used in its Safety Score Beta program, which evaluates driving behavior to estimate a policyholder’s likelihood of future collisions.
This change coincides with a potential class-action lawsuit concerning the system’s accuracy and fairness.
In the update from version 2.1 to 2.2 of the Safety Score Beta, the forward-collision warning metric no longer appears among the criteria used to calculate risk. Previously, this system issued audio and visual alerts when a collision appeared imminent without driver response.
Tesla’s update note for version 2.2 does not address the removal of this metric, mentioning only modifications in the measurement of excessive speeding.
The Safety Score program continues to evaluate other driving behaviors, including hard braking, aggressive turning, late-night driving, and forced Autopilot disengagement.
The forward-collision warning system plays a central role in a proposed class-action lawsuit, which claims Tesla Insurance overcharged drivers by incorporating inaccurate warning data into its risk model. Plaintiffs allege that false alerts negatively affected safety scores, leading to higher premiums.
Court records from Alameda Superior Court show that in July 2024, a hearing was set for October 23 to decide whether to certify the case as a class-action suit.
Tesla offers state-specific discounts for car insurance policyholders in the 12 states where Tesla Insurance operates. These discounts aim to lower insurance costs by utilizing safety features, multi-car policies, and defensive driving courses.
Tesla Insurance offers full coverage options with various limits and deductibles that can be tailored to your needs. In some cases, companye also offer additional insurance coverages and discounts. Coverages may differ by state.
The news follows on from a turbulent year that has seen a rise in GWP, a partnership with Zurich, legal disputes over insurance customer services and claims – and the recall of cyber trucks.
Tesla’s insurance premiums surged by 116% in 2023 compared to 2022. In 2024, insurance premiums jumped by 24%.
17% of Tesla customers in states where insurance is available have signed up for Tesla Insurance. This figure continues to tick up as the company spends more time in markets, according to Tesla Insurance results.
The top three states by premium volume, where Tesla writes on State National paper, are California, Ohio, and Arizona, with $387 mn in premiums in 2023, up from $218 mn in 2022.
