Elon Musk wants to roll car insurance and maintenance costs into the Tesla purchase price

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The Tesla purchase price is a pretty hefty price to pay, one that many simply cannot afford. Tack on the costs of car insurance and maintenance costs to the vehicle and you could feel like you’re working for your Tesla. Elon Musk has an unusual and rather intriguing solution to the problem, the pay-one-price model. Musk wants to make the Tesla purchase price one round number that would include both car insurance and maintenance costs. The insurance and maintenance would be valid through the life of the Tesla vehicle you choose, the company has already been testing this in Asia.

Currently, existing car insurance companies underwrite the policies with Tesla paying for them upfront and then tacking the cost onto the car’s purchase price, but CEO Elon Musk made it clear Tesla would explore all options. “If we find that the insurance providers are not matching the insurance proportionate to the risk of the car, then if we need to, we will in-source it,” he said during the call, according to Elektrek. “But I think we’ll find that insurance providers do adjust the insurance cost proportionate to the risk of a Tesla.”

Tesla has been regarded as one of the safest cars on the market and according to the National Highway Traffic Safety Administration, Tesla’s have gotten in 40% fewer accidents than others. The concept certainly sounds intriguing but will it save you money? How will Tesla take into account fluctuating insurance costs? We don’t have all the details or numbers so that’s extremely hard to say, what the pay-one-price model will do is offer you convenience. Not having to pay a monthly bill for insurance or budget money for maintenance will certainly be two things people will not have to worry about.

What do you think about Elon Musk’s plan? Let us know in the comments below or on Twitter, Facebook, and Google+.

[button link=”http://www.inc.com/kevin-j-ryan/tesla-insurance-maintenance-cost-up-front.html” icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]Source: Inc[/button]

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