Tesla Insurance Expanding to Texas: Real-Time Rates Expected Next Month

Fox Business Flash top headlines for September 22

Check out what's clicking on FoxBusiness.com.

Tesla owners in Texas may be able to buy auto insurance from Elon Musk's electric car company as soon as next month.

"Tesla is hoping to offer real-time (based on actual driving history) insurance in Texas next month," Musk responded to a Twitter user who asked if the automaker could offer Tesla Insurance in New York. 

The Twitter user, The Cybertru, said they received a quote for $500 a month for the Tesla's Model Y. If that was the best quote they could get, the user said they couldn't keep the car. 

CLICK HERE TO READ MORE ON FOX BUSINESS

However, Musk noted that the car company won't likely get approval to offer insurance in New York until at least next year, saying the approval process is very "complex." 

"The regulatory process for approval to offer insurance is extremely slow & complex, varying considerably by state," Musk wrote. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE  

In 2019, Tesla launched its own auto insurance for owners in California. The insurance is designed to offer Tesla owners up to 20%, and in some cases, up to 30% lower rates than competitors.

Ticker Security Last Change Change % TSLA TESLA, INC. 774.39 +20.75 +2.75%

"Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety and serviceability of our cars to provide insurance at a lower cost," the automaker said in a 2019 press release. "This pricing reflects the benefits of Tesla's active safety and advanced driver assistance features that come standard on all new Tesla vehicles." 

Telsa said its "comprehensive coverage and claims management" would only support customers in California although it planned to expand overage throughout the U.S.

At the time, the company offered few details about its planned expansion, only saying that it will happen "in the future." 

The Associated Press contributed to this report.