There's lots of places where tiny upsides come with huge downsides. And yet for some reason people still accept them! My partner's manager signed up for a summer energy program that could cut off her HVAC system in exchange for a super-paltry discount on her monthly electricity bill. She cursed her decisions a few hours in to the next heat wave.

I don't think they are all that competitive when it comes to insuring electric cars.

Teslas at least are very expensive to repair. Despite the high premiums, they may be competitively priced.

I suppose time will tell. If Tesla's insurance product becomes popular (in states/jurisdictions where it's offered), that would imply that big insurance companies are not pricing competitively.

Tesla gets to cheat a bit here, in that they don’t have to charge themselves markup on replacement parts for this own cars. So in theory they should always be able to outprice other providers for Teslas.

They also are only marketing to their own customers who generally have much safer lives than the Altima and Town and Country crowd.