Tesla claims new insurance product will offer lower prices

Enlarge / A Tesla Model 3. (credit: Smith Collection/Gado/Getty Images)

Tesla announced Wednesday that it is launching a new personal auto insurance product in California. Elon Musk said in April that Tesla would offer an auto insurance product the following month. Tesla now says the product is available in California for all Tesla vehicles going back to the original Roadster. The company plans to add additional states over time.

An April filing with California regulators indicated that Tesla planned to offer a Tesla-branded auto insurance product in partnership with the State National insurance company.

Tesla says that its insurance offering will be 20% to 30% cheaper than conventional insurance products.