If Tesla is a safer car, why the insurance cost does not reflect that?

[MacGreiner]

Insurance companies don't care two hoots about whether you survive a crash or the extent of your injuries - it is total auto restoration cost that they care about. Depending on the risk analysis, it his cheaper for them if you don't survive. That is why motorcyclists in no helmet states can still get insurance.

 

[KenF]

As others have said, you just need to shop around. With USAA in the Mid Atlantic, the Model 3 costs less to insure than a Suburu Impreza.

 

[Goodtohave]

I had to shop around....my existing company was stupid expensive .....finally found a very reasonable rate with one of the major companies

Big variance company to company for my model 3.

 

[SaddleSC]

Tesla is a safer car, meaning safer for the occupants. The insurance quote is primarily based on the high cost to repair the car after the accident has occurred.

 

[20140emission]

Because a Model 3/S/X are very expensive to repair.

I know aluminum repair costs more than steel. I could see the different hourly rates in the body shop. But if I total a M3 and my insurance pays me a replacement claim, it would cost them, say $54,000 plus or minus. If I totaled my Audi S6, they probably have to pay me close to that much since the purchase price was over $80,000. So, why charge me double to insure the M3?
Also, the insurance is a copy hundred more than the 2014 MS I traded in. Does it cost less to repair a MS?

 

[Ejl80]

As others have said, you just need to shop around. With USAA in the Mid Atlantic, the Model 3 costs less to insure than a Suburu Impreza.

And USAA wants 70% more to insure my model 3 than progressive. So shop around

 

[Bill Foster]

My 2019 SR+ is 40 bucks less a MONTH then the 2013 335i coupe I traded in

 

[Bill Foster]

And USAA wants 70% more to insure my model 3 than progressive. So shop around

Strange. See my post after yours. That discount I got is through USAA

 

[SageBrush]

I know aluminum repair costs more than steel. I could see the different hourly rates in the body shop. But if I total a M3 and my insurance pays me a replacement claim, it would cost them, say $54,000 plus or minus. If I totaled my Audi S6, they probably have to pay me close to that much since the purchase price was over $80,000. So, why charge me double to insure the M3?
Also, the insurance is a copy hundred more than the 2014 MS I traded in. Does it cost less to repair a MS?

For many reasons but you can start with this: most accidents are not a total loss.

 

[UTMB]

All things the same, my premium with Costco/Ameriprise is less/6mos for my Model 3 than my 135i cost when I bought it in 2008. Rep told me that it is lower because of automatic safety equipment, e.g. AEB.

 

[DanCar]

The car is designed to self destruct on impact. Absorb the impact so the passengers don't. Safety is about the passengers. The car takes the impact on the chin.

 

[neroden]

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?

Look at the breakdown. Car insurance is four main components:
(1) Personal injury -- for people in the car getting injured. This is LOWER for Teslas than for other cars.
(2) Liability -- for you injuring people in OTHER cars, or pedestrians, or damaging OTHER cars, or crashing into other people's houses. This is LOWER for Teslas than for other cars.
(3) Collision -- insurance for repairing YOUR car if it gets hit by another car. This is HIGHER for Teslas than for other cars, because the parts are expensive and the body repairs are expensive.
(4) Comprehensive -- insurance for repair YOUR car if it gets damaged by something else (like a tree falling on it). This is HIGHER for Teslas than for other cars.

Now you know. The insurance industry agrees that Teslas are safer than other cars, but they are expensive to repair.

That said, definitely shop around. I've seen really wild variation in premiums for insurance for Teslas, much higher variation than I am used to seeing with other cars.

 

[MidwestM3P]

My brand new Model 3 is $15 cheaper per month to insure than my 2013 BMW X3, both through State Farm and both with the exact same coverage, including deductibles. The Tesla has a much higher current value, of course.

 

[Ejl80]

Strange. See my post after yours. That discount I got is through USAA

USAA wanted about 2200 a year for my 340. 1700 a year for my Model 3. Progressive is about 1010 a year for my Model 3. I periodically check back with USAA and leave sad every time lol.

 

[ItsNotAboutTheMoney]

Price = cost x probability + margin

If high price then one or more of those is a problem.

 

[VT_EE]

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.

Why did you have to get the extra $9k? The car should be insured for all the features you purchased with the car unless you bought them after the fact.

 

[20140emission]

Look at the breakdown. Car insurance is four main components:
(1) Personal injury -- for people in the car getting injured. This is LOWER for Teslas than for other cars.
(2) Liability -- for you injuring people in OTHER cars, or pedestrians, or damaging OTHER cars, or crashing into other people's houses. This is LOWER for Teslas than for other cars.
(3) Collision -- insurance for repairing YOUR car if it gets hit by another car. This is HIGHER for Teslas than for other cars, because the parts are expensive and the body repairs are expensive.
(4) Comprehensive -- insurance for repair YOUR car if it gets damaged by something else (like a tree falling on it). This is HIGHER for Teslas than for other cars.

Now you know. The insurance industry agrees that Teslas are safer than other cars, but they are expensive to repair.

That said, definitely shop around. I've seen really wild variation in premiums for insurance for Teslas, much higher variation than I am used to seeing with other cars.

Well, if the car is safer, I assume the chance it causes an accident is lower. My insurance will pay for damage if My car is at fault. For accidents caused by others and I have no control, my insurance will go after the culprit party’s insurance and my insurance does not pay a dime. So, the argument that it costs more to repair and the car being safe does not affect the collision coverage cost is weak.
Anyway, yes, I have AAA and my home, umbrella are all tied with them. I guess I should just put up.

 

[Bill Foster]

USAA wanted about 2200 a year for my 340. 1700 a year for my Model 3. Progressive is about 1010 a year for my Model 3. I periodically check back with USAA and leave sad every time lol.

That’s insane. I pay about 900 a year for the Model 3 from Usaa

 

[Big Dog]

My new Model 3 is priced only a few dollars more than my two-year old Audi A3. As others said, shop around. Obviously, your carrier doesn't want to insure Teslas.

 

[alexGS]

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.

Actually I thought this discussion was in reference to the latest crash test results released this week; great results in EuroNCAP testing.
Tesla Model 3 aces crash test, sets 'new safety technology benchmark' - Electrek

-Alex