The Insurance Battle: Porsche Taycan Vs Tesla

Tesla has finally launched car insurance for drivers in California, and will soon expand to other states in the U.S. While this may be a boon for its customers, it has certainly raised a few eyebrows in other quarters. Now adding fuel to the battle of the electric cars, Porsche is slated to introduce car insurance before the launch of the Taycan, the first fully electric car from the company, which is also viewed by many as the usurper to the Tesla Model S. The move by both companies comes as a surprise to industry experts, as car manufacturers getting into the insurance business was something unheard of. In spite of electric vehicles being cheaper in terms of maintenance, energy costs, and higher safety ratings, insurers have put steep insurance premiums for electric vehicles due to the wildly varied claim rates.

Moreover, Tesla got into the business mainly due to its customers complaining of higher insurance rates, in spite of Tesla boasting higher safety ratings. Tesla claimed that under Tesla Insurance, customers could pay 30% lower on insurance costs compared to buying insurance from a private firm. The Porsche Taycan 2020 is set to launch in a couple of months, and by then, Porsche owners in 3 states will be able to purchase a new kind of per-mile insurance that the carmaker plans to offer.

Tesla collects a wide range of data from its cars, as seen in this article. Porsche, on the other hand, only requires customers to submit a photo of the vehicle’s odometers at regular intervals. It does not involve the collection of statistics such as a vehicle’s location or the way the vehicle is driven.

Insurance offered by Porsche will also cover every Porsche model made since 1981. Bentley, Lamborghini, and Bugatti owners are also likely to benefit, given that Porsche Financial service is their captive financial provider as well.

Nonetheless, the safety statistics of a car is of prime importance. Below we compare some of the safety statistics of both the cars and how it could potentially impact the insurance rates of the vehicles.


While features like the Automated Emergency Braking, Forward Collision Warning, and Lane Keeping Assistance comes standard in the Taycan, car owners would have to pay an additional $2050 for Adaptive Cruise Control, $1200 for Front and Rear Parking Sensors, $950 for blind-spot monitoring system, and $3,610 for Porsche’s InnoDrive feature. 

The InnoDrive feature is Porsche’s adaptive form of cruise control, which helps the car slow down during curves once a destination is programmed in the vehicle’s navigation system. Surprisingly, Tesla still doesn’t have a blind spot monitoring system, despite a perfect 5-star safety rating from the National Highway Traffic Safety Administration. Nevertheless, Tesla continues to be among the safest cars in the world.