Tesla has lots of hurdles to jump before launching driverless rides, but an overlooked barrier is car insurance.
There are plenty of hurdles for Tesla’s promised robotaxi fleet to clear before launching, but one overlooked barrier may be the complexity of insuring a fleet of self-driving Teslas.
Insurance for ride-hailing vehicles is already a complex subject. Uber and Lyft drivers are usually required to get an extra policy to cover their vehicles, which can cost them an average of $31 more monthly on top of their regular insurance policy, according to insurance comparison site The Zebra.
To make matters worse, Teslas are already more expensive to insure than the average vehicle. The average annual rate for a Tesla Model 3 is $2,221, compared to an industry average annual rate of $1,776, according to NerdWallet.
These costs could dent CEO Elon Musk’s promise that Tesla would operate a robotaxi business that is a mix of Uber and Airbnb, where drivers who enter their cars into the robotaxi fleet can profit from their otherwise stagnant vehicles.
“It’s great that you have a vehicle that is cheaper”, said Jessica Caldwell, executive director of insights for Edmunds, referring to Tesla’s $30,000 Cybercab.
