Feb 24, 2017 08:53 AM EST By Khaleb Skye A. Cruz, UniversityHerald Reporter

Elon Musk is so sure of the safety features inside the Tesla car that his firm started offering a lifetime insurance and maintenance package to some customers.

As future drivers say goodbye to steering wheels, Tesla car may also bid farewell to insurance companies. Indeed, there will be no more monthly payments and unexpected repair expenditures. However, does this mean that there will be a significant increase in the retail price of the automated vehicle?

Tesla car price hike: Lifetime insurance & repair paid in advance

Well, it looks like the cost of the lifetime insurance and maintenance of the Tesla car has been included in the purchase price. As of now, the exact amount of the bundle promo is undetermined. Nonetheless, it is theorized that the rates would be cheaper compared to a typical non-autonomous vehicle.

According to Teslarati, a retired General Motors executive named Lawrence Burns told Forbes that 90 percent of all automobile collisions are results of driver errors. If that is the case, the Tesla car could really eliminate all or most of human-error road crashes. Thus, fewer accidents would translate to less car insurance costs.

In the same manner, Lawrence Walker of the Rocky Mountain Institute supported Burns' statement. He then predicted that autonomous driving systems like that of the Tesla car may slash insurance premiums by as much as 90 percent too. Unfortunately, no company will survive such big loss.

Will the Tesla car really end the insurance industry?

Musk insisted that this strong move in the Tesla car market is not about disrupting the insurance business. However, it will only work smoothly if insurance companies agree to play it nice and fair. Musk even added that they are willing to insource if the need arises.

Apparently, insurance companies must adjust their prices based on the accident chances of a Tesla. In the same manner, the Autopilot safety feature of the Tesla car and its low maintenance cost must be taken into further consideration.Per the Business Insider, insurers like Cincinnati Financial, Mercury General, and Travelers admitted that driverless cars threaten their business platforms.

While the global debut of the "unified pricing" is unclear, Tesla VP for Global Investor Relations Jeff Evanson confirmed that the system already works in Asia. Evanson stressed that the S and X Tesla car models are being sold with insurance and maintenance coverages for quite some time now. For the record, Tesla accidents were reduced by40 percent since autopilot has been installed.

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