Tesla Autopilot: Insurer offers a 5 percent discount for drivers using Tesla’s driver assist system

Earlier this year, Tesla said that it was working with insurers in order for them to better understand features like the Autopilot.

Now, a major insurer announced that they are offering a 5 percent discount for drivers using Tesla’s driver assist system.

Britain’s largest motor insurer Direct Line confirmed to Reuters that they are offering the discount to encourage the use of Autopilot.

Dan Freedman, Head of Motor Development at Direct Line, said:

“At present the driver is firmly in charge so it’s just like insuring other cars, but it does offer Direct Line a great opportunity to learn and prepare for the future,”

It’s the second company to announce a similar initiative after a startup insurance company called ‘Root’ made a similar claim in the US earlier this year.

The discounts come after Tesla’s crash rate was reportedly reduced by 40% after the introduction of Autopilot based on data reviewed by NHTSA.

Earlier this year, data came out suggesting that some Tesla owners were paying higher than average premiums. Tesla CEO Elon Musk said that the insurers weren’t competitive and suggested that Tesla owners paying higher premiums simply change insurers.

But he also said that they will be working more closely with them to make sure the rates are fair – especially with the advent of autonomous driving and active safety features in Tesla’s vehicles.

Musk added:

“Not to the exclusion of insurance providers but if we find that insurance providers are not matching the insurance proportionate to the risk of the car, then if we need to, we will in-source it. I think we will find that insurance providers do adjust the insurance cost proportionate to the risk of a Tesla.”

Tesla also started working on a new car insurance program under its own brand and underwritten by other insurers. Last year, we published an exclusive report revealing the program when Tesla quietly launched it in Australia and Hong Kong.

Recently, the automaker expanded the program to several more countries, including in the US and Canada.