Tesla has agreed to pay more than $1.3 billion in premiums to insure its owners and their car when they die, according to an announcement on Monday.
Tesla has said that owners of its Model S sedan and Model X SUV, which are also electric, can expect to receive insurance coverage from its insurance company for up to 50 percent of their vehicle’s worth, or $2,000 to $3,000, depending on the model and state.
The company has long offered insurance coverage for its vehicles in some of the most expensive states, including Florida, New Jersey, Michigan, California, Ohio, Pennsylvania, and Massachusetts.
In 2017, Tesla agreed to a $2.5 billion settlement with the National Highway Traffic Safety Administration for allegedly violating safety standards and overcharging its Model X and Model S sedans, according.
The agreement also included the establishment of a separate, self-insured company to cover Model X owners.
Tesla says it is in the process of reviewing the settlement, which will not affect its ability to sell vehicles in certain states.
The company says it plans to pay a total of $1,500 to $2