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If You Let Your Tesla Drive Instead Of You, This UK Company Will Discount Your Insurance

Robots are Better Drivers and Insurance Companies Will Pay You For it

Published December 27, 2017

This news could change your perception of the world of tomorrow and ensure you that accepting self-driving machines could be easier and faster than ever thought before.


By discounting car insurance for drivers (well, passengers) who use self-driving features instead of actually driving the car.

Tesla Models S, 3, and X Lineup

A UK insurance company offered insurance discounts for those who let their Tesla drive itself. Now, imagine if all other car manufacturers offered the tech on their cars (which will happen) and insurance companies started with rebates. How long will it take for people to accept the insurance rebate and simply let their cars drive for them? No time. No time at all.

Right now, the rebate isn’t actually that massive. A UK company called the Direct Line will offer you a 5 percent rebate if you use the Autopilot feature.

Tesla Model X Snow

“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,” says Dan Freedman, Head of Motor Development at Direct Line to Reuters.

The Americans Actually Did it First

This is not the first time we’ve heard about something like this, either. In March this year, an Ohio-based company named Root Insurance offered insurance rebates and discounts for Tesla owners who use the Autosteer feature (a high-end feature which is a part of the Autopilot system). They decided on this after NHTSA published reports that Tesla car crashes plummeted by a massive 40 percent after the company introduced the Autopilot feature in 2015. In short, people let the car drive itself – apparently, robots make fewer (or no) mistakes compared with humans.

How is Autosteer Usage Monitored and Calculated?

In the case of Root Insurance, the company developed an App which can track the number of miles driven using the Autosteer feature. Once installed, it will report on the usage to the company. The more miles driven – the bigger the discount.

Tesla Model S Front 3/4 Rolling

“We created Root to be the car insurance of the future,” Root wrote in its blog post. “Artificial intelligence? Self-driving cars? We’re ready.”

Right now, Root Insurance is available in nine states.

Insurance models like this are designed around self-driving cars. As the technology becomes widely available, we may even see the emergence of new EV-specific and autonomous-specific insurance agencies. More importantly, new insurance practices will be adopted. Furthermore, as cars are becoming ever safer with the use of the autonomous driving tech, we are sure that insurance premiums will drop significantly. After all, if one does not make a mistake, why should you pay for its insurance?

One thing is becoming clear though, autonomous vehicles are going to rewrite the rules on insurance and we’re likely going to see a shakeup of the industry in the next decade. 


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Safet Satara
About Safet Satara

I do not have spare time. All there is is car time. 12 years and counting. I am a Central European gearhead, but you are probably thinking - aaa a disposable Borg drone! Well, actually, I like to dress up like James Bond too. The only thing I need to be him is an Aston Martin (and I love DBS more than DB5 because, reasons). That's something I guess.

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