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Tesla hires insurance executive to help further reduce costs for drivers: 'We'll lower the total cost of Tesla ownership and accelerate the world's transition to sustainable energy'

The push for responsible transportation continues. While traditional vehicles have been found to cause sickness and reduce air quality, electric vehicles produce no planet-warming gases. This helps to reduce air pollution and its effect on community health.

Data shows that most people who buy EVs are very happy with their purchase, and thanks to EV tax credits of up to $7,500, purchasing an EV is more of a possibility.

Electrek reported that clean energy and automotive company Tesla intends to make EVs more accessible by reducing insurance costs for consumers interested in an EV purchase. Tesla has hired former GEICO executive Allen Laben, an industry veteran of 20 years, to lead the insurance products and partnership efforts.

"My goal is to make Tesla vehicles easy and economical to insure. By partnering with insurance companies, teams across Tesla, and collision shops in the USA and Canada, we'll lower the total cost of Tesla ownership and accelerate the world's transition to sustainable energy," Laben shared on LinkedIn, per Electrek.

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For the last five years, Tesla has launched incentives to lower prices for their vehicles. This included the price reduction of its Model Y, S, and X vehicles by $2,000 in the United States. The company decided to address insurance cost concerns by launching its insurance product in 2021, which focused on safety scores over vehicle performance to assess pricing.

According to a recent study, 90% of Americans would save money by switching to an EV thanks to lower fuel and maintenance costs. An electric car can save, on average, $1,000 in fuel each year, giving back a substantial amount to consumers. Tesla has strived to develop EV technology while making it more affordable.

Watch now: Ford executive reveals how the brand will meet customers 'where they are' with EV technology

For example, Tesla recently invested $76 million in wireless electric vehicle charging technology, which could revolutionize how we charge our cars. Additionally, Tesla's new "Charge on Solar" feature is set to launch nationwide, allowing users to charge their Teslas using excess solar energy from their home panels.

"There's a very delicate balance, because making things more repairable also adds assembly cost and weight," commented one user on Electrek.

"If Tesla wants lower rates, they could limit maximum profits and lower the price accordingly," said another.

While Tesla has relied on partnerships with insurance companies to bring costs down, the automotive giant is determined to scale its own insurance products.

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