Tesla has recently hired a long-time GEICO executive to oversee its insurance program. The goal is to make insurance costs and premiums more affordable for drivers.
The company launched its in-house insurance program in the United States in 2019, but most drivers have not embraced it due to higher rates than anticipated. Tesla had expected lower costs because of its in-depth knowledge of its vehicles, but has struggled to achieve this.
In an effort to address this issue, Tesla has appointed Allen Laben as the Head of Strategic Insurance Partnerships. Laben’s primary focus will be to make the insurance option more affordable for drivers.
He shared his goal of making Tesla vehicles easy and economical to insure in his new role. Tesla Insurance is currently available in several U.S. states, with real-time insurance, which uses a safety score to determine rates, being unavailable in California due to regulations.
Despite Tesla’s attempt to have the regulation overturned, a judge ruled against it. The hiring of Laben is seen as a potential step towards closing the gap in achieving more affordable insurance premiums.