Tesla chooses Phoenix for telemetric insurance in Israel

The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) will provide unique car insurance to drivers who purchase a Tesla vehicle in Israel. Sources have told "Globes" that Tesla considered a number of insurance candidates in Israel, including Direct Insurance, before choosing Phoenix.

Tesla's unique insurance model, introduced in 2019, is individually tailored to each driver based on telemetric data, which is automatically transmitted from each Tesla vehicle to the company's cloud servers.

Tesla's special algorithms analyzes the number of kilometers each driver travels, the type of driving done (winter, night etc.), the characteristics of the driver (speed, braking, risk taking, accidents etc.) and thus builds a profile for unique insurance for each driver.

Depending on the data, the insurance company may offer 20% to 30% below the regular price for coverage. Nevertheless, in the US, insurance coverage for Tesla cars is on average $1,500-$3,400 higher per year that regular cars that are similar to Tesla's models.

In some countries, Tesla offers its own direct insurance by registering on the manufacturer's website but in Israel where external companies are not licensed to provide insurance, Tesla has been compelled to partner with an Israeli insurance company.

Phoenix declined to comment on this report.