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If the rise in insurance is because of repair costs why isn’t third party cheap too?
- Thread starter Kenners
- Start date
Was that recent as premiums are rising for all in the last few months? People with Lexus LC500s are seeing double their premiums from last year for example.
Last year the Direct Line group were the cheapest for me, so try Direct Line, Churchill and Privilege.
Has anyone who's been in an accident had extraordinarly long repair times, perhaps been told that parts availability is a problem?
It's the only reason I can think of apart from the obvious one that people are binning their Teslas regularly so it's a simple case if high risk for the insurer.
It's the only reason I can think of apart from the obvious one that people are binning their Teslas regularly so it's a simple case if high risk for the insurer.
I have a 2019 M3P and have been insured with LV for the last 4 years. The latest quote to renew was an increase of ~80% over last year to £850 (15k miles/y, full protected NCB, 63 y old) despite moving from South Oxfordshire to rural Norfolk and overnight storage in a garage. After shopping around I eventually insured with Admiral for £654 with a lower excess, 10k miles/y. legal cover, but no replacement car as I have two spare ICE cars.
Jonnymack74
Member
I believe premiums are skyrocketing on Ice cars too according to a few friends and work colleagues
I've never heard that or indeed tried selecting both on a comparison site to see if there is a difference, I always assumed overnight in a locked garage would be a positive.
However, I will never understand how a premium is arrived at as the prices quoted will change every day, Just how nominating the Mrs on my policy makes my premium lower (and me on hers) seems bonkers - surely If anyone adds another driver there is an increased risk of an accident directly linked to the increased use on the roads.
It seems if you add an experienced driver the premium comes down, therefore the assumption is the risks come down, but if your car is parked in a car park and your not with the car and another driver damages it your risk increases and the premium goes up - Just where is the logic?
People damage/scrap their vehicles getting in/out of garages leading to more claims. A driveway is normally the cheapest option.
Adding another driver decreases risk for long journeys where the driving might be shared rather than just one person getting tired and having an accident. It's normally only cheaper to add a second driver if they have their own vehicle - so it doesn't really increase the use of the vehicle (which is limited to your annual mileage anyway).
The point really was is third party removes the risk of anything EV/Telsa specific, as I am wearing all of that risk for them. If I crash it I have all the costs for the damage to my car. Sure there is a performance element too, but I can insure a 911 for about a third of the price of my Y and I have yet to see any evidence Tesla’s are involved in more accidents. There are basically zero thefts. Safer cars should reduce premiums overall.
So why is third party cover still massively higher? That is clear evidence of insurers charging excessive premiums based on the brand in my mind, not the risk assumed. Repair risks/costs should be reflected in the gap between the third party premium and fully comp, if the market was operating fairly.
As all insurers have hiked premiums well above the level of a lot of other brands you could say there is evidence of collusion.
I would be amazed if lower running costs of EVs did not factor in the decision to increase premiums, they will look at total cost of ownership and assess what is bearable.
So why is third party cover still massively higher? That is clear evidence of insurers charging excessive premiums based on the brand in my mind, not the risk assumed. Repair risks/costs should be reflected in the gap between the third party premium and fully comp, if the market was operating fairly.
As all insurers have hiked premiums well above the level of a lot of other brands you could say there is evidence of collusion.
I would be amazed if lower running costs of EVs did not factor in the decision to increase premiums, they will look at total cost of ownership and assess what is bearable.
"Conspiracy Start"
The Oil industry are looking for other ways to punish EV drivers rather than scare tactics in the news..... They bribe the Insurance companies to hike the premiums on EV's!
"Conspiracy End"
If it is true in what the insurance companies are saying and that the cost of repair/parts is the cause of the increase, then when is the premium increase so uneven? If no change to anyone's details (age, address, NCBs etc) then surely it should be a similar % increase to everyone's premiums and not just random.
The Oil industry are looking for other ways to punish EV drivers rather than scare tactics in the news..... They bribe the Insurance companies to hike the premiums on EV's!
"Conspiracy End"
If it is true in what the insurance companies are saying and that the cost of repair/parts is the cause of the increase, then when is the premium increase so uneven? If no change to anyone's details (age, address, NCBs etc) then surely it should be a similar % increase to everyone's premiums and not just random.
While I do think that insurance companies are rip off artists with absolutely no priority around serving or providing value to their customers, there are many factors at play.
1. Roaring inflation has increased repair costs and their operational costs. They probably also took a hit due to Mad Liz crashing the bond markets and need to rebuild their equity. Boring politics effects our renewals, vote wisely.
2. Tesla repairs do seem to be more expensive than maybe they should, having 'Tesla Approved' bodyshops helps keep the price high.
3. New regulations to prevent them ripping off people who don't compare prices lead to the inevitable where they rip off everyone equally. Anyone who thought it would be to our benefit really needs to remember these are insurance companies.
4. Your Tesla is perhaps newer than your old car, and so more chance of a larger payout on total loss.
5. Auto insurers have long chosen to play the game of attracting the sort of customers they want through their pricing, while initially Tesla owners were perhaps boring old lower risk farts like me or you, perhaps the demographic is changing and we just aren't appealing anymore.
Still, at least our great allies the Saudi's are working with Russia to push up the price of petrol and diesel, while the forecourts operators are profiteering, and we seem to be encouraging Norwegian's to profit even more from North Sea oil. The end of the fossil era will be slow and utterly disgusting to watch while huge amounts of money is transferred to unworthy causes.
1. Roaring inflation has increased repair costs and their operational costs. They probably also took a hit due to Mad Liz crashing the bond markets and need to rebuild their equity. Boring politics effects our renewals, vote wisely.
2. Tesla repairs do seem to be more expensive than maybe they should, having 'Tesla Approved' bodyshops helps keep the price high.
3. New regulations to prevent them ripping off people who don't compare prices lead to the inevitable where they rip off everyone equally. Anyone who thought it would be to our benefit really needs to remember these are insurance companies.
4. Your Tesla is perhaps newer than your old car, and so more chance of a larger payout on total loss.
5. Auto insurers have long chosen to play the game of attracting the sort of customers they want through their pricing, while initially Tesla owners were perhaps boring old lower risk farts like me or you, perhaps the demographic is changing and we just aren't appealing anymore.
Still, at least our great allies the Saudi's are working with Russia to push up the price of petrol and diesel, while the forecourts operators are profiteering, and we seem to be encouraging Norwegian's to profit even more from North Sea oil. The end of the fossil era will be slow and utterly disgusting to watch while huge amounts of money is transferred to unworthy causes.
@bay74 - I note my last two posts have got the thumbs down from you, Is it everything I say? or just a bit of it? Have i misinterpreted the information of the video?.
Of course, feel free to disagree with me but it really would help if you posted a reply and say what your belief is or correct me where I'm going wrong. I don't take offence because people disagree but it would be nice to know why.
Of course, feel free to disagree with me but it really would help if you posted a reply and say what your belief is or correct me where I'm going wrong. I don't take offence because people disagree but it would be nice to know why.
ChrisInTheCar
Member
My insurance is due for renewal in the next month so I did some quotes. It's gone up from 300 ish to 400 ish (with Churchill). I don't know where these figures of £5000 come from! Out of someones a** I think.
Had a bump early this year in my Y. Drove the car home (so can’t have been damaged too badly). Car spent several weeks being assessed. Warned that parts “take months” to come in, so be prepared for a wait.
Eventually said chassis looks bent so unsure if battery damaged.
Car written off. £50k claim.
Apologies to all for insurance premium increases, but I suspect the car may have been repairable if Tesla a) were able to supply parts in good time (instead of insurance paying hire-charges), and b) the car was designed with repairability/recertification in mind. To be fair to the insurance company, to some extent it was easier for them to write the car off, then pass the cost onto other people insuring Teslas.
Ouch that's some bump
The takes months for parts is going to be the kicker, lots of car rental costs, at those special insurance company 5 times as much as normal people pay rates.
There really could do with being more investigative journalism on insurance practices, including those very questionable claim management companies that seem to be just another avenue to hide profits.
Insurance companies are notorious for taking the easy option and writing off perfectly repairable vehicles. (This has been the case long before Tesla and I don’t believe Teslas are much different in repairability anyway) They get their money back from all us customers whether they repair or write off… but one option is a whole lot less hassle… and they can still get something back on the written off car. Guess where are the components for classic car conversions come from!
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