Tesla has long operated outside of the realm of most automotive companies, offering a suite of unique products that no one else has. Now the ground-breaking company plans to expand its offering of Tesla Insurance.

Tesla’s insurance offering is currently available in just eight states, including California, Illinois and Texas. During the last earnings call, Tesla reported it had become the second-largest insurer of its cars in the Lone Star State. Eventually, the company will offer coverage to 80% of the U.S., then it will take this offering international.

“The car insurance industry is incredibly inefficient,” Tesla CEO and Founder Elon Musk told attendees of the All-In Summit in Miami. “You’ve got so many middle entities, from insurance agents all the way to the final reinsurer. There’s like a half-dozen companies each taking a cut.”

Tesla bases its insurance premiums on real-time driving data to compile a monthly safety score.

Five factors impact this safety score: forward collision warnings per 1,000 miles, hard braking, aggressive turning, unsafe following and forced Autopilot disengagement.  

The company sets the Safety Score at 90 when customers first sign up. But adjusts premiums monthly based on a driver’s Safety Score. The higher the score, the lower the premium.