Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Apr 3, 2022

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The Lowdown

  • Telsa rolled out built-in telematics in every car
  • This inner system is one of the main reasons Telsa’s are known as “the smartest car”
  • Telsa also offers its drivers the option to enroll in Telsa auto insurance

Last year, Elon Musk announced the new Tesla Insurance, which opened the door to the car safety world as a high-end auto insurance provider. Telsa telematics is the measure behind the program to ensure that drivers are making the right choices while driving.

Telematics also referred to as usage-based auto insurance, is meant to adapt rates to how you drive. These internal systems measure how many miles you drive, your acceleration, your braking, and other driving behaviors.

If you’re ready to buy Tesla telematics auto insurance, use our comparison tool to help you find a provider. Enter your ZIP code to get started today.

How does Tesla telematics work?

Telsa telematics is basically a hub of connections relaying back to Tesla engineers to be analyzed and reworked for best results. Like many devices and apps already offered by nationwide providers, data is a major calculator in safe driving and your insurance rates.

Data is also collected and assessed for crash correlation and probabilities and stored within the vehicle. According to the Tesla website, you can request a copy of the data collected by your vehicle.

Suppose it’s consistently found that drivers are taking to the road radically or leaving their car idling each morning. In that case, that will be taken into consideration even if you don’t team up with the Tesla telematics auto insurance company.

Customers of Tesla insurance will be evaluated monthly, which is more frequent than other six-month policies currently available throughout the United States.

What driving habits does Tesla telematics track?

The most common driving information used in most usage-based programs includes:

  • Where you live
  • Time of day
  • Mileage
  • Hard-braking events
  • Acceleration
  • Idle time

Tesla is also using recorded data and new data to continue to adapt in an attempt to make the vehicle safer.

Does telematics make Tesla cars safer?

The Tesla telematics control unit is meant to operate — similar to its competitors — as a safety game-changer. The difference between the Tesla telematics service and others is features like the Event Data Recorder.

This safety feature monitors the actions before the crash and uses those events to improve Tesla’s system.

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How does are Tesla telematics auto insurance rates affected?

The Tesla auto insurance website boasts competitive pricing of up to 30 percent lower than other providers. However, currently, Tesla Insurance only offers comprehensive coverage and support to Tesla owners in California — with plans to expand.

Teslas are a breed of their own; therefore, the company created this program to offer affordable Tesla auto insurance in-house.

For non-Califonia residents, the basic Tesla telematics module could provide you some sort of safe-driving discount. Savings on insurance is something you should discuss with your provider.

Tesla Telematics: The Bottom Line

Teslas are considered to be high-end vehicles. They are on the cutting-edge of technology and consistently keeping America on its toes. But with the big-name on the steering wheel can follow a big price tag should you get into an accident or something breaks.

In an effort to keep the vehicle’s maintenance streamlined, Tesla is phasing in its own insurance program. Though currently limited to residents of California, Tesla Insurance is a new program designed to give you the best price based on Tesla telematics auto insurance quotes.

Use our free comparison tool to see how Tesla insurance stands up against other providers in your area. Enter your ZIP code to get started.