According to new regulatory filings, Tesla has submitted an application to launch its in-house insurance program in Tennessee, with a proposed effective date of March 1, 2026. This comes hot on the heels of Tesla’s first expansion in 3 years: Florida.
This move tells us that Tesla is now focused on expanding the program again. After that three-year pause, we’ve already got two new markets announced, which likely means that customers in the US can look forward to further and faster expansions throughout 2026.
FSD Discounts Included
The Tennessee filing confirms that the new Insurance program will feature Tesla’s FSD discount structure from day one, similar to its offering in other states. This model directly incentivizes FSD use by lowering premiums based on your FSD usage.
With Tesla underwriting its own insurance program, it can take active steps to create better offerings to its customers, just like this one. Under this system, the monthly premium is calculated against your miles driven on FSD and your Safety Score.
Drivers can typically earn a discount of up to 10% on certain portions of their coverage if they drive more than 50% of their miles on FSD.
The Expansion Roadmap
If approved for the March 1st launch, Tennessee will join the list of 13 other states where Tesla Insurance is currently available:
Arizona
California (No Safety Score)
Colorado
Florida (New)
Illinois
Maryland
Minnesota
Nevada
Ohio
Oregon
Texas
Utah
Virginia
Tesla’s previous round of filings included Arizona, Florida, Georgia, Illinois, and Tennessee. With 3 of the previous round already complete, it suggests that Tesla is looking to continue its rapid expansion throughout 2026, with Georgia and New Jersey potentially being next on the list.
