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Tesla’s Safety Score system will be key to in-house insurance’s affordability

Credit: @syncwraps/Instagram

Published

4 years ago

October 22, 2021

Simon Alvarez

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 removed from Charlotte’s approved EV list due to ‘safety issues’

City reps say it’s not because of Elon Musk’s political involvement, but instead because of safety issues.

Published

1 hour ago

June 24, 2025

Joey Klender

Credit: Tesla

Tesla has been removed from the Charlotte, North Carolina, City Council’s list of pre-approved electric vehicles that the city can purchase.

It’s not because of Elon Musk, Democratic council member LaWana Mayfield said, who urged her colleagues to remove Tesla. Instead, she claims it is because of “safety issues.”

She said (via WFAE):

“So it is not just the particular owner of this product. It is the fact that this product has been in multiple lawsuits because of safety issues, and there are multiple concerns.”

Recent data from Tesla shows that its vehicles are about half as likely to be involved in an accident when being driven normally. When Autopilot technology is used, it is about ten times safer than the average driver in the U.S., statistically.

Tesla Vehicle Safety Report shows Autopilot is 10x better than humans

Republican City Council member Ed Driggs stood up for Tesla, saying that:

“I think we just set a dangerous precedent if we have reasons that aren’t related to the cost and the performance of purchased items for excluding them. We already have Teslas in the fleet.”

If they’re so dangerous, why are they already in the fleet?

The NHTSA also shows that Ford is the most recalled car company in 2025, with 81 total recalls. Tesla has just five for the year.

Driggs said to Mayfield during the meeting:

“We are not identifying names on this list. You are singling out one name on this list for political reasons. You don’t have enough data on Tesla compared to the other car companies to suggest they shouldn’t be here. I object to trying to disguise this as anything other than a politically motivated desire to not have this name on this list.”

Tesla was successfully removed by a 6-3 vote. Democrats Danté Anderson, Malcolm Graham, Renee Johnson, Victoria Watlington, and Tiawana Brown supported Tesla’s removal. Republican Edwin Peacock, along with Driggs and Democrat Dimple Ajmera, all voted no on removing Tesla.

The City of Charlotte will buy 45 new electric vehicles, and Teslas would likely be the best option. Many local law enforcement agencies across the U.S. have utilized them and have shown that the vehicles contribute to massive maintenance and cost of ownership reductions due to the lack of overall upkeep.

Tesla police fleet is saving taxpayers $80k per year on fuel costs: report

This is not the first time that a city in the U.S. has chosen to go in a different direction with its EV fleet plans. Tesla was chosen over Ford by the City of Baltimore for a $5 million expenditure that would bolster its fleet with EVs.

However, earlier this year, Baltimore said it “decided to go in a different direction,” and although it was not directly confirmed, the move seemed to be political.

News

Tesla threatened in France with claims of ‘deceptive’ practices

Tesla has been threatened by the Competition, Consumer Affairs, and Fraud Control Office in France after the agency said it is participating in “deceptive business practices” related to its semi-autonomous driving capabilities.

Published

4 hours ago

June 24, 2025

Joey Klender

(Credit: Tesla)

Investigators in the government office said that Tesla has engaged in deceptive commercial practices over the capabilities of its cars. In the past, other agencies and even some skeptics have said that Tesla’s use of the phrases “Autopilot” and “Full Self-Driving” is inaccurate in terms of its capabilities.

Tesla Autopilot gets stone cast in its direction by Pete Buttigieg

However, Tesla has been transparent with consumers and regulatory agencies that its cars are not yet fully autonomous, meaning drivers could sleep, play on their phones, or pay no attention to the road. The car would take care of steering and speed.

Tesla has never maintained that its cars are capable of this. On its website and in its Owner’s Manuals, it says that drivers are required to pay attention and be prepared to take over in case of an emergency.

The office began the investigation back in 2023 and, this week, ordered Tesla to comply with regulations within the next four months. If it does not, it will face fines of €50,000 per day.

This is not the first time Tesla has had some pushback from regulators regarding the naming of its semi-autonomous driving platforms. Back in 2023, then Secretary of Transportation in the United States, Pete Buttigieg, said the name “Autopilot” was not accurate because it is still a hands-on system:

“I don’t think that something should be called, for example, an Autopilot, when the fine print says you need to have your hands on the wheel and eyes on the road at all times. We call balls and strikes. I view it as something where it’s very important to be very objective. But anytime a company does something wrong or a vehicle needs to be recalled or a design isn’t safe, we’re going to be there.”

He then said that Autopilot and its interaction with the person operating the car is a “real concern.”

Elon Musk

Tesla Robotaxi launch draws attention from regulators, mainstream media milks it

The Tesla Robotaxi launch has resulted in some questions from the NHTSA, a typical thing for early launches. Media is milking it as a huge thing.

Published

5 hours ago

June 24, 2025

Joey Klender

Credit: @AdanGuajardo/X

Tesla launched its Robotaxi platform in a limited capacity earlier this week in Austin, Texas, and after hundreds of rides have been taken, some instances have caught the attention of the National Highway Traffic Safety Administration (NHTSA).

However, the information the NHTSA is requesting is routine and totally normal for the early stages of a rollout of this magnitude. But that did not stop mainstream media from milking it into something controversial, when it really is not.

Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

Various outlets reported on the NHTSA’s request to Tesla for additional information regarding things seen in videos online.

The NHTSA said it is “aware of the referenced incidents and is in contact with the manufacturer to gather additional information.” Bloomberg initially reported on the NHTSA’s request for information.

The thing is, the NHTSA has often reached out to companies right after it launches a driverless vehicle service. Both Waymo and GM’s Cruise, as well as Amazon’s Zoox, have had the NHTSA reach out to them regarding the launch of their driverless ride-hailing services.

The headlines for Tesla are significantly different:

Reviews from riders in Austin have stated the Robotaxi platform is “smooth” and “comfortable,” with many ranting and raving about the advantages the new ride-hailing service has over others. Not only is it being monitored by a safety monitor in the passenger seat, but there are also other things that make it unique.

One of the most notable is that your Robotaxi will automatically sync entertainment and streaming settings.

The sensationalism that the media tends to use with Tesla is a big reason the company did not invite mainstream outlets to the event. Instead, reporters were seen waiting for Early Access invitees to exit their cars to ask them questions.

Many denied the inquiries: