Insurance and FSD upgrade

[Rhian]

Hi everyone.
We got our LR dual motor M3 last year with no FSD and we got it Insured with LV.

We upgraded to FSD last month just before the price increase kicked in. We have just rung LV to let them know about the upgrade for insurance reasons so they put the FSD down as an engine modification (?!) and increased the premium by £50 as their system doesn’t recognise software add ons/updates.
Has anyone upgraded to FSD and tried to notify their insurance company and had the same experience?
I want to make sure that we are actually covered.
thank you!

 

[SteveLR3]

I upgraded mine. I'm with Direct Line, they said it didn't affect my policy but have just added a note to say I've got it. Premium unchanged.

 

[timpharrison]

I just haven’t told insurer. I can’t see any reason to do so.

 

[Watts_Up]

... and increased the premium by £50 as their system doesn’t recognize software add ons/updates.
thank you!

I guess it's considered as an additional equipment, so if your car is totaled or stolen...it would be included in the insurance reimbursement.

However, I was thinking that your insurance could have also been reduced because of the added security?

Note: Did you get a discount for car localisation and recovery feature offered with the Tesla App?

 

[HenryT]

I just haven’t told insurer. I can’t see any reason to do so.

I guess that would mean it won't be taken into account in the value you are offered for replacement then if your car is ever written off?

 

[Jeeves]

... We have just rung LV to let them know about the upgrade for insurance reasons so they put the FSD down as an engine modification (?!) and increased the premium by £50 as their system doesn’t recognise software add ons/updates.

How much of that was the customary fee for making a change of any kind?

It sounds like they just picked the item on their menu that most closely aligned with the change. I would challenge it in writing if you feel it was unfair. You might not get the outcome you expect. They might regard FSD as introducing higher risk and charge you more than £50.

Does the FSD functionality move with the car or the owner? For example, if you bought FSD and decided to swap your car for a new one, could you move the FSD licence (if that’s the right term)?

 

[Rhian]

I guess it's considered as an additional equipment, so if your car is totaled or stolen...it would be included in the insurance reimbursement.

However, I was thinking that your insurance could have also been reduced because of the added security?

Note: Did you get a discount for car localisation and recovery feature offered with the Tesla App?

I’m questioning the fact that they put it down as an engine modification, which is not. I want to make sure we are covered.




This whole new tech is unchartered territory for the insurance companies who haven’t got much clue about this latest tech.
Tesla insurance can’t get here fast enough!

 

[Jeeves]

In that case, I would seek written confirmation.

 

[Drew57]

I don't know about LV but Direct Line initially thought the acceleration boost was a modification & wanted to charge me £30.

I challenged that, was put on hold while a Manager was consulted & they then confirmed that with Teslas' these things are not a mod, just software changes so no additional premium required & comments to that effect put on the account.

 

[MrBadger]

We have just rung LV to let them know about the upgrade for insurance reasons so they put the FSD down as an engine modification (?!) and increased the premium by £50 as their system doesn’t recognise software add ons/updates.

On our renewal (with a different insurer), when looking at alternatives LV wouldn't quote us online due to FSD and tow. We could add tow to list of options, but as you say, no logical place for FSD so when put in as iirc 'other', the website just had a blanket refusal to cover.

Tesla insurance can’t get here fast enough!

Be careful what you wish for. I believe they monitor your driving and assess risk accordingly.

 

[timpharrison]

Some interesting points raised here. I do not believe the insurer would reimburse you for the cost of FSD if you had to make a claim for replacement of a totalled car. If I’m wrong on this, I agree that it absolutely would be worth letting the insurer know you’ve added this option.

In addition it is my understanding that Tesla will not allow you to transfer FSD across in the case that your car is totalled. I think that’s appalling of Tesla, but I’m pretty sure it is true.

 

[Tony Hoyle]

I just haven’t told insurer. I can’t see any reason to do so.

LV have it in their latest T&C that you must tell them about *every* update including OTA.

Of course nobody is going to do that (potentially thousands of tesla owners calling them weekly...), but if they wanted to be arseholes they could refuse to pay out on the grounds you didn't tell them about something minor.

OTOH they do seem to understand FSD, the only stipulation that you must install all updates to it.

 

[Drew57]

DL reminded me that their policy will pay out based on the car as originally insured & would not reimburse for things subsequently added like FSD or boost. Seems fair enough as we aren't being asked to increase the original premium

(& as far as FSD is concerned, I'm pretty sure it is non-transferrable..... it stays with that car/that owner)

 

[dan223]

I guess it's considered as an additional equipment, so if your car is totaled or stolen...it would be included in the insurance reimbursement.

If the car came with FSD then it would be covered in payout, however as it was added afterwards it is unlikely the insurance will payout for any "modifications". I could expect maybe the performance boost to add some costs, but FSD I wouldn't think should, but obviously if they associated a higher risk with FSD then that is a different story, make sure you get the change in writing specifying that it is FSD and not an engine modification.

I just haven’t told insurer. I can’t see any reason to do so.

It is a modification to the original spec, and any modification requires you to let your insurers know, if you have an accident and they found out you hadn't (ok probably a small chance but it is possible), your insurance would be invalid and you would find it hard to ever get insured again.

 

[AnthonyLR]

I upgraded mine. I'm with Direct Line, they said it didn't affect my policy but have just added a note to say I've got it. Premium unchanged.

Same for me. And Direct Line said if I buy the acceleration boost to tell them but there would also be no increase.

 

[Louis0w]

Interesting thread. I’m with LV. I bought FSD at time of purchase in Sept ‘19. I didn’t even consider informing LV that it had FSD, and don’t recall being prompted to. I guess I should inform them for my own peace of mind; but is it really the expectation that all owners with FSD, even if spec’d at time of purchase, need to inform their insurer of a ‘modification’?

 

[Tony Hoyle]

See https://www.lv.com/-/insurance/medi...cuments/0029604-car-document-of-insurance.pdf

Under 'things that you must tell us about':

"changes are made to the manufacturer’s standard specification, which improve the value, appearance, performance or handling of your car, including OTA updates"

Questions for LV would be.. If you bought it with FSD is that the standard specification? If you buy it afterwards is that a change to that specification? If Elon decides to give it everyone free does everyone then have to call LV individually and tell them? Does 'improve the value' mean I should have called the insurer when I got netflix?

As I bought the car with FSD I don't consider that any kind of modification.. the things that have happened with OTA updates since, that's a grey area.

 

[AndyS3]

Its factory modification so doesn't need to be mentioned imho

 

[AnthonyLR]

Its factory modification so doesn't need to be mentioned imho

So if the car is written off and you haven't told them what do you think they say when you ask them to pay for FSD on the replacement?

 

[MrBadger]

My Dad use to work very closely with the insurance industry. I remember as a young child sitting in the dome of the building at end of Regents Street adjacent to Piccadilly Circus. We were having 'tea' (in my eyes, my Dad was on business) with the head of Sun Alliance, a pretty major insurance company of that time.

One of the many wise thing he taught me in life was 'never let there be a grey area with insurance'. Which basically means the insurers will interpret things how they wish unless you get things formally agreed. ie don't assume that things will be covered.