Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Insurance Lawyer

UPDATED: Mar 31, 2021

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Company Details
Address: 3500 Deer Creek Road
City: Palo Alto
State: CA
ZIP Code: 94304
Phone Number: (650) 681-5800
Website: https://www.tesla.com/
Year Founded:
AM Best Rating:
Company Rating 0 (0 reviews)

Just the Basics

  • Tesla telematics review and collect data from all Tesla cars
  • This data includes everything from driving behaviors to internal system information
  • Tesla cars periodically send the data collected to Tesla for review

When you hear the words “smart car,” Tesla is likely one of the first brands to come to mind. That is not inaccurate, considering that Teslas are some of the smartest vehicles on the road today.

In part, this is due to the Tesla telematics system.

This system measures a novel amount of vehicle functions and is a large part of how Tesla can quickly improve their cars and operation systems.

However, with all that intelligence, does Tesla telematics actually have any effect on car insurance?

Keep reading to learn more about telematics in general and how Tesla telematics may affect car insurance in the future.

Are you looking for more affordable Tesla car insurance rates? Enter your ZIP code above, and we will help you find local car insurance providers to start your search.

What are telematics?

Telematics in cars refers to a system inside cars that tracks data like speed, acceleration, location, etc.

This data can be gathered by a tracking device installed in a car, via an app, or, in the case of Tesla vehicles, built into the car itself.

Telematics are commonly used to track vehicle data on fleet vehicles.

However, many insurance companies have launched usage-based insurance programs that use the technology to track driving behaviors to encourage safer driving habits and earn discounts.

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What does Tesla telematics track?

Because Tesla’s telematics system is built into the car, it has access to all of the functions and information about your Tesla.

For example, your Tesla Model S telematics can tell everything from when it was last charged to whether or not you were wearing your seatbelt during a crash.

They monitor countless other pieces of data and periodically send this information to Telsa to be analyzed.

The telematics system’s purpose is more than just to track information; it’s to help their company and cars learn.

Using onboard telematics, Tesla has actively made changes to improve their vehicles’ safety features overall, earning them the highest safety rating from the NHTSA.

Do Tesla telematics make Tesla car insurance more affordable?

That depends on who provides the car insurance.

Tesla announced in 2019 that they were going to be launching insurance specifically for Teslas.

This insurance was going to be more affordable than that offered by major companies, in part because Tesla said they would be taking into account the safety features of their vehicles.

This would include their telematics as well as their overall construction.

Currently, Tesla insurance is the only insurance company likely to take telematics more into account than the cost of repairing a Tesla, which is what has driven other insuring rates so high. This insurance is also only available to residents of California at this time.

So, while Telsa telematics is the most advanced system currently available, they are not currently lowering the cost of insurance for most customers.

Are you ready to start searching for Tesla car insurance quotes?Before you buy Tesla car insurance, enter your ZIP code below and we will help you find affordable rates near you.