Tesla Insurance Using Real-Time Driving Behavior

Different from most traditional insurance products, Tesla Real-Time Insurance removes the following variables that would otherwise impact your premium:

• Credit/Age/Gender/Marital Status
  We believe your price should be determined by how you drive, not who you are.
• Accident/Violation History
  We believe your price should be determined by how you drive now. We do not increase your premium due to an incident regardless of whether it happens before or after you sign up for Tesla Insurance.

Your premium will change in one of three circumstances:

• Updates to any of your policy or personal details (such as coverage limits, your home address)
  For any changes to your policy or personal details, the premium will change immediately to reflect the changing circumstances.
• Changes to your mileage
  During your first 6 months upon purchase, you can contact us at 1-844-34-TESLA to update your estimated mileage if you think your mileage has or will change substantially from your initial estimate. Your premium will reflect the change right away. After the first 6 months, your mileage for the next 6 months will be updated based on the actual mileage driven in the last 6 months.
• Changes to your Safety Score
  Once a new Safety Score for the month has been determined, you will be notified at least one month in advance before the premium is changed. Your monthly premium increase or decrease due to a Safety Score change will be capped at up to 50% for each vehicle insured.* In order for the Safety Score to be used to determine your next premium, you need to drive at least five miles in the past 30 days and your vehicle must be connected to a cellular or Wi-Fi network at least once during the previous 60-day period.

*Safety Score changes will not be capped in all states.

Your Safety Score for each vehicle gets updated at the end of each month based on your driving in the previous 30 days and it will impact your premium in the following month. Tesla will notify you in advance of your new monthly premium. Here is an illustration of how the Safety Score impacts the Tesla Real-Time Insurance premium each month:

There are currently two versions of Safety Score available, version 1 and version 1.2. Each version uses a different calculation to determine your Safety Score.

The following table illustrates when the switch to version 1.2 is expected to happen for each state where version 1.2 is currently available. If your policy start date is on or after the date displayed, your policy will be using version 1.2 to calculate your premium. Also, If your policy renewal date is on or after the date displayed, your policy will be using version 1.2 to calculate your premium at the start of your next policy term:

If your policy is using version 1.2 upon your renewal, you will see your Safety Score being calculated at least 60 days before the renewal. Your premium will not be impacted till the start of your next policy term. Your renewal notice will contain your Safety Score using version 1.2, at least 30 days before the renewal of your policy.

Safety Score version 1.2 is coming to additional states soon.

Note: If version 1.2 Safety Score is available in your state but your policy renewal date falls before the date listed above, your policy will be updated to version 1.2 during this renewal.

Vehicles that do not have the capability to report data, or stop transmitting data for 60 consecutive days, will be treated as an unconnected vehicle. An unconnected vehicle's premium is determined using a Safety Score of approximately 86.

Currently, you can get your Safety Score for your vehicle in one of two ways:

1. Become a Tesla Insurance customer in one of the states we offer insurance. You will have access to a Safety Score if you have an active Tesla Insurance policy.
   • Tesla Insurance customers in California can opt-in to view their Safety Score from the home screen in the Tesla app. It is provided for educational purposes only, and you can opt-out any time.
   • For Tesla Insurance customers in all other select U.S. states, the Safety Score is automatically available from the home screen in the Tesla app.
2. Customers who have the option to request Full Self-Driving (FSD) Beta can do so from the vehicle’s touchscreen. To view if you have access to FSD Beta, select 'Controls' > 'Autopilot' > 'Request Full Self-Driving Beta.' This will activate the Safety Score in your Tesla app.

If your vehicle does not include one of the safety features utilized in the Safety Score (due to Hardware or Firmware limitations), the Safety Score is calculated without it. When calculating the Safety Score, the median values will be used by default.

If you cancel your policy or remove your vehicle from your existing policy, and then later add it to a new or a different existing policy, the vehicle’s latest Safety Score from when it was removed from the policy will be used for the vehicle’s first month’s premium when reinsured with Real Time Insurance. Thereafter, your premium will change as normal.

If your vehicle has not been on a Tesla Insurance policy for over a year, a Safety Score of 90 will be used.