IIHS media relations associate Young demonstrates a front crash prevention test on a Tesla Model 3 at IIHS-HLDI Vehicle Research Center in Ruckersville, Virginia
IIHS media relations associate Young demonstrates a front crash prevention test on a Tesla Model 3 at IIHS-HLDI Vehicle Research Center in Ruckersville, Virginia (Photo: REUTERS/Amanda Voisard)

The Tesla Model 3 was recently the recipient of the Top Safety Pick+ award, which in turn could help owners receive lower insurance rates from providers. Those who have subscribed to the company's in-house insurance service will benefit from this especially.

During Tesla's first-quarter earnings call, CEO Elon Musk announced the Tesla Insurance. The company issued an initial roll out on Aug. 28 and stated that the in-house insurance would help owners of Tesla vehicles save up to 30 percent of their current insurance premiums.

Tesla Insurance is currently available only to citizens of California, USA but it will be launched across the country in the near future.

In-house insurances are incredibly beneficial to owners because of the fact that the company knows its cars better than any other company or other insurance providers. For Tesla, this means it could "leverage the advanced technology, safety, and serviceability of (its) cars to provide insurance at a lower cost."

The most significant advantage lies on the fact that Tesla is able to tune in its prices fairly simply because it has all the information it needs about the vehicle.

Meanwhile, mainstream insurance providers have been known to subject high premiums, and Tesla's rates belong to those of high-end luxury cars. As pointed out by Teslarati, this is partly due to the lack of background knowledge and misconceptions about electric cars.

All this could change with the Model 3's superior high safety ratings. This could change the perception of many insurance providers, and as a result, insurance premiums could be adjusted in terms that would be more affordable to owners. This is definitely a good change of pace, especially those who own electric cars that find insurance premiums a tad too expensive.

This is not the first high-safety rating for the Model 3. Last year, the National Highway Transportation Safety Administration (NHTSA) awarded the Model 3 a five-star rating. In July 2019, Thatcham Research Head of Research Matthew Avery said that the vehicle "achieved one of the highest Safety Assist scores we have seen to date."

ANCAP, or the Australasian New Car Assessment Program, also awarded the Model 3 a five-star safety rating and garnered stellar scores in three of four of their exams.

The Tesla Model 3'S new Top Safety Pick+ award was given to the vehicle for its "superior" front crash prevention system. The Model 3 joins the Lexus ES, BMW 3 Series and Mercedes-Benz C-Class in the mid-size luxury car category.