Tesla Insurance appears to be gearing up for another expansion, with filings suggesting the automaker is preparing to launch its coverage in two additional U.S. states in the coming months.
According to regulatory filings first reported by Coverager, Tesla Property & Casualty has submitted new auto insurance programs in both Indiana and Tennessee, with a proposed effective date of March 1, 2026. If approved, the moves would mark Tesla Insurance’s first multi-state expansion in years, following its recent launch in Florida.
One of the key highlights in both filings is a new Full Self-Driving (Supervised) discount. Under the proposed programs, Tesla will calculate how much of a driver’s monthly mileage is completed using FSD, with insurance discounts adjusted accordingly each month. This incentive would be layered on top of Tesla Insurance’s existing telematics-based pricing model, which relies heavily on the company’s Safety Score system.
Tesla’s Safety Score evaluates real-world driving behavior such as hard braking, aggressive turning, speeding, following distance, and overall mileage. These factors are recalculated every 30 days, allowing premiums to increase or decrease based on how a customer actually drives. The addition of an FSD-based discount further ties Tesla Insurance pricing to the automaker’s driver-assistance technology.
The Indiana and Tennessee filings come just weeks after Tesla Insurance expanded to Florida, its first new market in more than three years. Florida became Tesla Insurance’s 13th state and a particularly important one, given the state’s high insurance premiums and the growing number of traditional insurers pulling back from the market.
Currently, Tesla Insurance is available in Virginia, Arizona, California, Colorado, Florida, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, and Utah. Prior to Florida, the last time Tesla Insurance entered a new state was Minnesota in late 2022, highlighting how significant this recent burst of activity is.
It’s worth noting that Tesla Insurance does face regulatory limitations in some regions. In California, for example, insurers are prohibited from using real-time telematics or driving behavior data to set premiums, preventing Tesla from applying its full Safety Score model there. Tesla Insurance has also faced scrutiny in the past, including a class action lawsuit over alleged premium overcharges.
If the March timelines hold, Indiana and Tennessee could signal the start of a broader insurance expansion strategy from Tesla in 2026.
