Tesla's car insurance is now available in California

It theoretically lowers your rates -- if you're committed to Tesla cars.

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Roberto Baldwin/Engadget
Roberto Baldwin/Engadget

Tesla just gave some of its most faithful US drivers the insurance they've been looking for. After rollouts in Asia and Australia, the EV maker has introduced its simply titled Tesla Insurance in California. Drivers can theoretically lower rates on their cars by as much as 20 to 30 percent compared to conventional insurers since "Tesla knows its vehicles best." There are no surprise fees, and you can cancel or modify your policy at any point.

Other states will have access "in the future," Tesla said.

The catch, of course, is that you need to keep buying Tesla cars to see the benefit. If there's ever a rival EV that lures you away, you'll also want to switch providers. The automaker is no doubt hoping that the discount will be pronounced enough (especially for luxury machines like the Model S) that you'll be happy to stick with its cars.

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