Direct Line, the largest motor insurer in Britain, is providing drivers of Tesla Inc. in Britain a discount of 5% for shifting on the autopilot system of the car. This move was done in order to encourage the use of a system that it expects will slash down on accidents. The decision, which was verified by the representatives of the company in response to media questions, is the only tie-up of Tesla in the U.K. and follows at a time when the firm is attempting to talk into insurers that its Internet-linked cars are statistically more secure.
Direct Line claimed that it was too early to claim if the usage of the autopilot system made a security record that vindicated lower premiums. It claimed that it was charging less to persuade the employment of the system and help research. “Currently the driver is decisively in charge so it is just similar to insuring other vehicles, but it does provide Direct Line a huge chance to prepare and learn for the upcoming period,” claimed Head at Direct Line for Motor Development, Dan Freedman, to the media in an interview.
Direct Line trades insurance policies launched to it by Tesla to the users. Tesla then offers data on the capabilities and features of its cars to assist Direct Line decide prices of the insurance. As per website of Tesla, most of the autopilot features comprise robotically changing lanes without driver input, leveling speed to traffic circumstances, and even self-parking. The vehicle can also be sent from and to a garage.
“Crash rates all over models of Tesla have dropped by 40% since the roll out of the autopilot system. On the other hand, when users look to insure their Tesla cars, this is not mirrored in the costing of premiums,” Financial Analyst at GlobalData, Daniel Pearce, claimed to the media in an interview. “The insurance sector will steadily react to these advancements,” Pearce claimed