Tesla is preparing to expand its in-house auto insurance business to Tennessee, according to a regulatory filing that would mark the company’s second new U.S. market for the product in as many months.
Tesla Property & Casualty has filed a new private-passenger auto insurance program with Tennessee regulators, with a proposed effective date of March 1, 2026, according to documents first reported by insurance industry publication Coverager. The filing states that the company has “submitted a new private-passenger auto insurance program in the state,” outlining coverage and pricing features tailored to Tesla vehicle owners.
If approved, Tennessee would become the 14th U.S. state where Tesla Insurance operates. The move would follow the program’s recent expansion into Florida, which ended a period of more than three years during which Tesla did not enter any new insurance markets.
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According to the filing, Tesla plans to roll out its telematics-based insurance model in Tennessee, including discounts linked to the use of its Full Self-Driving (Supervised) driver-assistance system. Under the proposed structure, premiums would be partially adjusted based on the share of miles driven with the system engaged, with higher usage resulting in larger discounts.
Tesla’s insurance offering differs from traditional auto insurance by relying heavily on vehicle data to assess risk. In most states where it operates, premiums are adjusted using Tesla’s Safety Score, which evaluates driving behaviour such as braking, turning, speed and following distance. The scores are updated monthly, allowing rates to change based on recent driving patterns rather than fixed demographic factors.
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The proposed Full Self-Driving-based discount extends that approach by tying pricing not only to driver behaviour but also to how frequently Tesla’s software is actively controlling the vehicle. The filing indicates that Tesla measures total miles driven and miles driven with Full Self-Driving (Supervised) enabled over a rolling 30-day period to calculate the discount.
Tesla Insurance has grown steadily despite its limited geographic footprint. For the first nine months of 2025, Tesla’s insurance carriers generated $747 million in written premiums, according to company disclosures, underscoring the business’s increasing contribution and providing an incentive for further state-by-state expansion.
