I just took delivery of a M3, LRAWD and updated my auto insurance. It is kinda a sticker shock to find insuring the M3 cost much more than my Audi S6, a V8 turbo. Collision coverage is exactly double that of the Audi's which does not have Autopilot features. So, despite all the claims about autopilot being safer, does the insurance industry agree or is there statistics proving that claim?
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If Tesla is a safer car, why the insurance cost does not reflect that?
- Thread starter 20140emission
- Start date
You have to shop around with a Tesla. Some companies have decided they don’t like to insure them and have set prices accordingly. We had to move from AAA to a different company when buying our Teslas, as AAA wanted double for the Teslas as other companies.
It is possible some insurance companies treat them like an exotic in their systems, who knows. Best just to move on to a different company.
It is possible some insurance companies treat them like an exotic in their systems, who knows. Best just to move on to a different company.
mkspeedr
Member
No matter how safe it is - minor accidents cost a lot to fix. Way safer in a big crash but minor ones are costly.
jebinc
Well-Known Member
Probably because the collision insurance for a car, that probably costs more (and more to repair) than the car it replaces???
It's the cost of parts to repair the vehicle. Especially with all the Tech even a small fender bender might make an Insurance Co. buy out the car instead of repairing it.
Actually the parts cost are fairly reasonable when compared to competing brands. The labor costs and very very very long repair times are the killer
Teslas have a high safety rating as they protect the passengers from serious injuries better than other cars based on the crash report (and also from some pretty severe accidents we've seen where the drivers can walk away). Medical expenses and after care can be costly for insurance companies. However it's the design of the car parts that offers the protection and that's what your paying for and for the most part coming from Tesla who can't make the parts fast enough for new cars and replacement pieces (do think their parts warehouse is due to be completed this year). Our local news channel did a story recently about how people who even get into fender benders can expect to see a dramatic rise in repair costs as now most cars have a lot of sensors and electronics in those areas and those aren't cheap to replace and we know Telsa has a good amount of electronics and sensors in their cars.
I know with aluminum parts (Model 3s uses both aluminum and steel), the labor cost (and skilled labor involved) to work with aluminum is reportedly higher as well. I think most people who buy a Tesla for the safety aspect of it are more concerned about walking away with no or minor injuries as opposed to parts of their car to be replaced when it comes down to it.
I know with aluminum parts (Model 3s uses both aluminum and steel), the labor cost (and skilled labor involved) to work with aluminum is reportedly higher as well. I think most people who buy a Tesla for the safety aspect of it are more concerned about walking away with no or minor injuries as opposed to parts of their car to be replaced when it comes down to it.
jebinc
Well-Known Member
"... some are aluminum and some are steel..." Really??? How can you tell? Early ones were aluminum?
No, designed with both on the Model 3 from the beginning. A magnet will tell you but here's a chart that will help you.
Tesla Model 3: here's the alloy mix of the Model 3 body - Electrek
Insurance company's costs are based on coverage.
A tesla being "safe" just means you aren't as likely to die. That may be reflected in the medical payment portion of your insurance. But most of your insurance costs are from stuff like collision and comprehensive.
What makes the car safe are things like crumple zones - which vastly increase the cost to repair.
A tesla being "safe" just means you aren't as likely to die. That may be reflected in the medical payment portion of your insurance. But most of your insurance costs are from stuff like collision and comprehensive.
What makes the car safe are things like crumple zones - which vastly increase the cost to repair.
CarlK
Active Member
Like others said shop around there are good rates around. Premiums for our S and X are not much different than the Prius we used to have. I'm with CSAA (AAA affiliate in NorCal) and have a clean driving record.
Be "safe" still has a lot to do with the cost. Fixing a broken leg or punctured lung is whole lot costly than to replace a broken bumper or crumpled front end. One reason of the high cost is some insurance companies do not how to access the risk of the car they have little experience with. They'd just err on the safe side or just to scare you away for the business they are not interested. That's the reason why Elon wants to start an insurance business. This will become even worse when FSD is released.
Be "safe" still has a lot to do with the cost. Fixing a broken leg or punctured lung is whole lot costly than to replace a broken bumper or crumpled front end. One reason of the high cost is some insurance companies do not how to access the risk of the car they have little experience with. They'd just err on the safe side or just to scare you away for the business they are not interested. That's the reason why Elon wants to start an insurance business. This will become even worse when FSD is released.
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Just got my bill from Allstate for the 3. Rates went up 42% to $146/month. (250/500K, $0 deductible comprehensive and $500 deductible for collision, for the performance model (if that makes a difference.)) Called them up and they said it was due to higher actual costs for repairs, than their initial estimates.
Got a quote from State Farm and they were $142 for almost the same coverage.
Both quotes with Homeowner's and personal umbrella multi policy discount.
Got a quote from State Farm and they were $142 for almost the same coverage.
Both quotes with Homeowner's and personal umbrella multi policy discount.
iaflyer
Member
There are two terms to know when thinking insurance. Frequency and Severity. The cars out there with these ADAS systems have not yet shown a reduction in frequency (although we do expect it someday) but severity (cost to settle the claim) has skyrocketed.
And I’ll just throw this out there, the IIHS-HLDI (the places that actually crash cars to test them, unlike CR) doesn’t have a particularly high opinion of Teslas. At least as of a presentation they give us last week.
And I’ll just throw this out there, the IIHS-HLDI (the places that actually crash cars to test them, unlike CR) doesn’t have a particularly high opinion of Teslas. At least as of a presentation they give us last week.
My insurance dropped in half when replacing a decade old Toyota Land Cruiser as my daily driver. I had an 08 and a 16 Land Cruiser which cost the same to insure, and I replaced the 08 with the Model 3 and saw a big drop in rates overall. Maybe on my next renewal the cost will go up as more people buy the Model 3 and get into costly accidents, but regardless my cost of ownership is MASSIVELY improved with the Tesla. I did the math from owning my Model for 4k miles over 3 months compared with the Land Cruiser, and I've quite literally saved nearly $1k - in 3 months. It's truly mind boggling to think about how much I'll save in the coming years, and now the remaining Cruiser in our garage will only see 2-3k miles per year so the gas cost is negligible.
caskater47
Member
When I got my P3D last August I had Allstate. They wanted to double my premiums. I switched to Geico where the Tesla costs less to ensure than my wife's Acura MDX.
Lack of information and level of risk. Insurance companies run on just the numbers. If they don't have the data then some might be overly conservative (high rates). It takes time and information for this to change. Shop around. Some insurers were very high for me, others were cheaper or the same as my old SUV.
+1 on Geico. A little cheaper than my Highlander was with State Farm. Edit. I'm paying about 120 a month, including 9k in extra insurance to cover autopilot and FSD.
+1 on Geico. A little cheaper than my Highlander was with State Farm. Edit. I'm paying about 120 a month, including 9k in extra insurance to cover autopilot and FSD.
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