Tesla Faces Lawsuit Over Elevated Insurance Premiums Linked To Forward Collision Warnings

Tesla Insurance will have its date in court

Not a Tesla App

A class-action lawsuit has been filed against Tesla Insurance Services, alleging that the company overcharges for car insurance premiums. This accusation stems from the claim that Tesla bases premiums on “false” crash warnings rather than actual driving behavior.

Judge Brad Seligman of Alameda County Superior Court denied Tesla's request to dismiss the lawsuit, setting the stage for a detailed examination of Tesla's practices. While Tesla has denied any misleading conduct, the court’s decision to allow the case to proceed highlights the gravity of the allegations.

Safety Score Accuracy?

The plaintiff, Illinois resident Ricky Stephens, represents Tesla drivers from numerous states, including Arizona, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. This lawsuit, gaining traction under California's expansive unfair competition law, raises critical questions about the reliability and fairness of Tesla's insurance premium calculations.

The lawsuit, scheduled for an initial hearing in January 2024, seeks restitution, disgorgement of profits, and an injunction against alleged false advertising. The core issue lies in the “safety score” used by Tesla to determine insurance premiums. This score is affected by several factors, including hard braking, aggressive turning, and, notably, forward collision warning alerts.

Implications for Tesla and the Auto Insurance Industry

This lawsuit could have significant implications for Tesla and the broader auto insurance industry. The case highlights real-time data and algorithm-driven assessments in determining insurance premiums. Using vehicle data to calculate insurance rates, Tesla's innovative approach was seen as a game-changer. However, the current legal challenges suggest this technology might not be as flawless as initially perceived.

Several Tesla drivers have reported sporadic and random forward collision warnings, which adversely affect their safety scores and, consequently, their insurance premiums. This situation raises concerns about the accuracy of Tesla's vision system, which is still under development. If these collision warnings are indeed erroneous, as alleged, this could mean that customers are unfairly penalized with higher premiums based on inaccurate data.

Moreover, the case involving Tesla drivers who engaged in Track Mode on their EVs raises further questions about the insurance unit's algorithms. Reports of significant premium hikes after a single day of aggressive driving in controlled conditions challenge the fairness and transparency of Tesla's premium calculation methods.

Tesla's ongoing legal battle over its insurance practices is more than just a corporate dispute; it is a litmus test for the use of advanced technology in calculating insurance premiums. As the case progresses, it will be crucial to scrutinize the balance between innovative data use and the rights of consumers to fair and transparent insurance pricing. The outcome of this lawsuit could set a precedent for Tesla and the entire auto insurance industry as it grapples with integrating new technologies into traditional business models.

Follow

Follow

Follow

Tesla Introduces Hands-Free Frunk Opening in Update 2024.32.3

Not a Tesla App

In Tesla’s upcoming update, 2024.32.3, Tesla has added hands-free support for opening the vehicle’s frunk. This follows the Spring Update (2024.14), which added Hands-Free Trunk support for certain vehicles.

When hands-free trunk support was added earlier this year, it was supported on vehicles that include an ultra wideband chip, which includes the refresh Model S, new Model X, and the 2024 Model 3. Due to the hardware requirement, these will be the same vehicles that support the new Hands-Free Frunk feature. Legacy vehicles without UWB will unfortunately not support either feature due to the hardware requirement. UWB enables far more accurate tracking of the phone key, allowing Tesla to pinpoint its exact location relative to the vehicle.

The Cybertruck interestingly also includes an ultra wideband chip, however, it didn’t include the automatic opening of the gate earlier this year. However, we expect the Cybertruck to also receive the hands-free frunk opening in this 2024.32.3 update or relatively soon afterward.

Update: The Cybertruck is receiving hands-free frunk support in the 2024.32 update as well.

Hands-Free Frunk

The Hands-Free Frunk works similarly to the trunk feature – with an iPhone 11+ and a recent version of the app, you’ll be able to stand in front of your vehicle, and the Frunk will unlatch after sounding a chime. On some vehicles, the frunk will immediately open after being unlatched, however, you’ll need to manually close it.

This new feature isn’t enabled by default – you’ll need to go to Settings > Locks > Hands-Free Frunk to enable it.

At this time, Tesla doesn’t support UWB on Android devices, though both the Hands-Free Trunk and Hands-Free Frunk support will come to Android users in a future app update, according to Tesla.

Exclude Home

With the addition of the hands-free frunk opening, Tesla has also added a new option. You can now choose to disable the automatic opening when your vehicle is located at home to prevent you from accidentally opening. This will apply to the automatic frunk and trunk. In addition, in the Model X, you’ll also be able to disable the self-presenting doors at home. This is a great addition as many people have kept the hands-free feature disabled due to it awkwardly opening in the garage.

In the 2024.32.3 update, Tesla also mentions that they’ve improved the detection of the phone key, which should make the feature more reliable and faster when approaching the vehicle from the front or rear.

Follow

Follow

Follow

Tesla’s Referral Program Launches in Europe

Not a Tesla App

Following its recent launch in the United States and Canada, Tesla has launched their referral program in several European countries as well.

The program is available in Germany, Norway, France, the Netherlands, the United Kingdom and possibly others. The program is almost the same as the one available today in North America, with rewards for each referral and a discount for those referred. The cap in Europe is also ten per year.

This program comes right on the heels of a 0% financing offer for the Model Y in Sweden and France. While referrals aren't currently available in Sweden, the 0% financing still is.

European Referrals

The European Referral program accounts for country and local currency, where applicable.

The referral reward program is comparable to the one available in North America. After exchange rates, there is only an approximately 10% difference between the available rewards in the US and EU.

Other Countries

We expect this program to start rolling out to other European countries over the next few days or weeks, as Tesla continues to expand its referral program.

Follow

Follow

Follow