Tesla has launched an insurance service designed to give drivers in California – its biggest market – lower rates because of safety features on its electric vehicles, according to an article by Reuters.

Tesla said its rates were lower than its rivals by as much as 20% but did not provide comparisons, according to the article.

The California Department of Insurance website showed Tesla was licensed as a broker to conduct business on behalf of the State National Insurance Company Inc., a unit of Markel Corp., according to the article.

U.S. insurers say they currently do not have sufficient data to validate auto industry promises of safety benefits from automated driving systems, citing automakers’ reluctance to provide detailed information on models sold with those features, a lack of consistent standards, drivers’ unpredictable use of the systems and higher repair costs, according to the article.

Tesla said it would offer “comprehensive coverage” and claims processing to customers in California, and that it would expand to additional U.S. states in the future, according to the article.

Data from Tesla vehicles, when in autonomous mode, “will decrease the frequency and severity of collision claims for Tesla owners,” a factor that State National said will allow it to offer insurance at a lower cost.

Just a few months ago, Porshe announced a similar tailor-fit insurance program where drivers would be given rates based on their monthly mileage.

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