Tesla Insurance is preparing to launch in Florida, marking its first expansion into a new state in three years. The move could impact thousands of Tesla owners in Florida who may soon have access to insurance policies directly from the electric vehicle manufacturer.
Tesla Insurance Expansion: Florida Set to Join Existing States
Tesla Insurance currently operates in 12 states, according to recent reports. The states where Tesla owners can purchase insurance from the company include Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia.
According to a report from CoverageR, Tesla has filed to begin offering insurance in Florida. This would be the first time Tesla Insurance has expanded since its 2022 launches in Utah and Maryland.
How Tesla Insurance Works for Drivers
Tesla Insurance provides coverage directly to Tesla vehicle owners, bypassing traditional third-party insurers. The company uses a Safety Score to determine individual pricing. This score is based on:
- Hard braking
- Aggressive turning
- Excessive speeding
- Unbuckled driving
- Late-night driving
- Unsafe following distance
According to official sources, this approach allows Tesla to set rates that reflect each driver’s behavior behind the wheel.
Background: Tesla Insurance Business Model
Tesla first launched its insurance business in 2019. The company became the first automaker to offer coverage directly to its own customers, aiming to simplify the insurance process for electric vehicle owners.
By using data from its vehicles, Tesla claims it can provide more accurate pricing and faster claims processing. For many Tesla owners, this has made Tesla Insurance a cost-effective option compared to traditional providers.
Previous Attempts and Future Expansion
Tesla previously filed to launch insurance in Florida in 2022 but did not proceed at that time. The company has also signaled plans to expand into Georgia and New Jersey, according to CoverageR.
Internationally, Tesla opened an office in Europe with the intention of expanding its insurance operations, but no launches have occurred there to date.
Regulatory Developments and Challenges
While Tesla Insurance is expanding in Florida, it faces regulatory scrutiny in other states. According to a report from Kelley Blue Book, the California Department of Insurance has warned Tesla about its claims handling practices.
Officials reported that Tesla must demonstrate improved claims processing by October 18, 2025, or risk fines or suspension of its license in California. California is the largest market for Tesla vehicles in the United States.
Financial Performance and Rate Changes
According to S&P Global data cited in May 2025, Tesla Insurance had a loss ratio of 92.5% in 2023. This means the company paid out $0.925 in claims for every $1 collected in premiums. This figure does not include overhead costs such as salaries and rent.
Reports indicate that insurance rates for Tesla vehicles have increased significantly in recent years. Factors include higher rates of vandalism and rising costs for repairs and replacement parts. These trends are part of broader Florida home insurance rate changes and market shifts affecting policyholders statewide.
According to official sources, Tesla models are among the vehicles experiencing the largest premium increases. Some industry analysts have suggested that Tesla Insurance may be operating at a loss, especially when overhead is considered.
What Florida Tesla Owners Can Expect
Once approved, Tesla Insurance in Florida will allow Tesla owners to purchase policies directly from the company. The insurance will use the same Safety Score system as in other states, potentially offering competitive rates for safe drivers.
According to CoverageR, the launch in Florida could provide more options for electric vehicle owners seeking coverage tailored to their vehicles. This move comes as the Florida insurance market faces statewide reform proposals, which could further influence rates and policy offerings in the near future.
Details about the official launch date and specific policy offerings have not yet been released. Information may be updated as the regulatory review continues.
Frequently Asked Questions About Tesla Insurance in Florida
What is Tesla Insurance and how does it work in Florida?
Tesla Insurance is an auto insurance service offered directly by Tesla for its vehicle owners. In Florida, it will use a Safety Score system to set rates based on driving behavior. This score considers factors like braking, speed, and seatbelt use.
How much does Tesla Insurance cost for Florida drivers?
Rates for Tesla Insurance vary by driver and are based on individual Safety Scores. While some owners have found it cost-effective, prices can change due to factors like repair costs and driving habits.
Are there other states where Tesla Insurance is available?
Yes, Tesla Insurance is currently available in 12 states, including California, Texas, and Illinois. Florida is expected to become the next state to offer this service.
Can you purchase Tesla Insurance for non-Tesla vehicles in Florida?
No, Tesla Insurance is only available for Tesla vehicles. The service is designed specifically for Tesla owners and uses data from their cars to set rates.
Where are Tesla Insurance offices located in Florida?
As of now, Tesla has not announced specific office locations for its insurance division in Florida. Most policy management and claims processes are handled online or through Tesla’s digital platforms.
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