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Direct Line reveals details of tie-up with Tesla

Direct Line reveals details of tie-up with Tesla | Insurance Business

Direct Line reveals details of tie-up with Tesla
Two weeks ago we told you about US automaker Tesla’s collaboration with British motor insurer Direct Line. Further details on the partnership have now surfaced.

“Crash rates across all Tesla models have fallen by 40% since the introduction of the autopilot system, illustrating how this technology has significantly improved the safety of driving,” Daniel Pearce, general insurance analyst at analytics firm GlobalData, said previously. “However, when owners seek to insure their Tesla vehicles, this is not reflected in the pricing of premiums.”

This is where Direct Line comes in – at least in the UK, as Tesla is partnering with other insurers in several markets as part of its “Insure My Tesla” scheme. As an introducer-appointed representative, Tesla will refer customers to Direct Line for motor insurance; the automaker, for its part, will provide information on its models’ capabilities for the purpose of aiding premium pricing. 

Now Reuters says it has confirmed another significant move being introduced by the partnership. To encourage the use of Tesla’s autopilot system, Direct Line will offer a 5% discount to those who come onboard. While not solely for safety reasons, utilising the system is also being pushed in order for the insurer to gain insights.  
“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,” said Direct Line head of motor development Dan Freedman, as quoted by the report.

In an earlier post on the GlobalData website, Pearce noted: “With over 2,500 Tesla vehicles with autopilot capabilities currently on UK roads, and Tesla looking to launch its latest model aimed at the mass market towards the end of 2017, the need for insurance policies that reflect their higher safety standards will grow over the coming years.”

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