Insurance and gap insurance question

[mikeg561]

I have my current insurance with AAA here in Southern California. I called and asked about insurance for my soon to be delivered 85D.

My Lexus 2009 LS460 costs me $1,062 a year for insurance. The same coverage on the Tesla is quoted at $3,521. Wow! Plus AAA does not offer gap insurance.

1. Anyone else seen such big increase in the cost of insurance?
2. My Tesla delivery person told me the lease does not offer gap insurance. Anyone else have this issue and know what to do? Do I need to find a new insurance company? Hate to do that, been with AAA for like 20 years.

Thanks for your input!

Mike

 

[Super_Popular]

Yep. mine went up by $200 for six months 9 months ago, now at my renewal in July it's going up and $170 for 6 months. It's do to the high cost of repairs. I have Geico.

 

[jeffro01]

My Tesla delivery person told me the lease does not offer gap insurance.

Wait what? Can someone else confirm this? That's a huge risk to take on a car that's this expensive...

Jeff

 

[patrick40363]

US Bank is the company that tesla uses for the lease. Gap comes automatically as long as you maintain certain insurance coverage. At least it did with my last US bank lease.

I have my current insurance with AAA here in Southern California. I called and asked about insurance for my soon to be delivered 85D.

My Lexus 2009 LS460 costs me $1,062 a year for insurance. The same coverage on the Tesla is quoted at $3,521. Wow! Plus AAA does not offer gap insurance.

1. Anyone else seen such big increase in the cost of insurance?
2. My Tesla delivery person told me the lease does not offer gap insurance. Anyone else have this issue and know what to do? Do I need to find a new insurance company? Hate to do that, been with AAA for like 20 years.

Thanks for your input!

Mike

 

[mikeg561]

Hmmm. I will double check with my delivery expert. Yesterday he told me it does not include gap, but maybe he was mistaken. I will ask him to double check and report back here.

Patrick- how long ago did you get your lease? Maybe the new leasing program has changed??

US Bank is the company that tesla uses for the lease. Gap comes automatically as long as you maintain certain insurance coverage. At least it did with my last US bank lease.

 

[patrick40363]

My US Bank lease ended 3 months ago. That is when I purchased my Tesla. In my mind the Tesla lease deal is awful.

Hmmm. I will double check with my delivery expert. Yesterday he told me it does not include gap, but maybe he was mistaken. I will ask him to double check and report back here.

Patrick- how long ago did you get your lease? Maybe the new leasing program has changed??

 

[DoubleDownOn9]

I also have AAA (Bay Area). My premiums went up $33 per month. Did you take the old car off your insurance? That might be it. If I didn't take off my old car the premium went up $200 per month. Sell that gas hog!

I financed my car through my Credit Union. They offered GAP and told them I wanted it but I never heard back from them on it. I'll follow up and get an idea of what the rates are. Yeah I'm pretty sure it's going to be a good bet on these cars. In 5 years I'm guessing they'll take a beating in value.

- - - Updated - - -

Oh and a quick follow-up. Someone dinged my car so it is currently getting body work done. I didn't really notice that much of a difference in price vs other cars. It's not serious work but it is more or less what I would expect from any other repair job. The real bummer is other party's insurance seems to think that a Kia Optima is a comparable car...

 

[Modeler]

My US Bank lease ended 3 months ago. That is when I purchased my Tesla. In my mind the Tesla lease deal is awful.

What is awful about it?

 

[patrick40363]

too much money down.

What is awful about it?

 

[jeffro01]

too much money down.

I once thought that as well until I went and looked at a comparable Mercedes or BMW lease and notice the amount due at signing was pretty damn close...

Jeff

 

[patrick40363]

If you drive off the lot and total your car you just lost the money you put down on the lease. If you are going to lease zero down is best.

I once thought that as well until I went and looked at a comparable Mercedes or BMW lease and notice the amount due at signing was pretty damn close...

Jeff

 

[mikeg561]

So here are some good updates:

1. Tesla finance expert confirmed that the lease DOES include gap insurance.
2. AAA in Southern California gave me an updated quote.....the first one was a mistake. Again, from comparison my previous car was a 2009 Lexus LS460. 12 months insurance is $1,062. Same coverage for 85D is $1,940. Originally they told me the Tesla was $3,521. That was a quote for the entire policy (i.e. all the cars in our household....not just the Tesla). wew!

 

[brucet999]

I have my current insurance with AAA here in Southern California. I called and asked about insurance for my soon to be delivered 85D.

My Lexus 2009 LS460 costs me $1,062 a year for insurance. The same coverage on the Tesla is quoted at $3,521. Wow! Plus AAA does not offer gap insurance.

1. Anyone else seen such big increase in the cost of insurance?
2. My Tesla delivery person told me the lease does not offer gap insurance. Anyone else have this issue and know what to do? Do I need to find a new insurance company? Hate to do that, been with AAA for like 20 years.

Thanks for your input!

Mike

State Farm quote for 70D at $86k price is $700 for first 6 mo, likely $600 after that when low mileage (12k) is established. Message me and I'll put you in contact with my agent.

 

[jeffro01]

If you drive off the lot and total your car you just lost the money you put down on the lease. If you are going to lease zero down is best.

Well sure but you can say the same thing about putting a down payment on one you bought as well... I love leasing, I do so on most every car I buy. I don't have to worry about being up side down and I love getting new cars all of the time...

YMMV...

Jeff

 

[kj_pa]

I have my current insurance with AAA here in Southern California. I called and asked about insurance for my soon to be delivered 85D.

Do I need to find a new insurance company? Hate to do that, been with AAA for like 20 years.

Mike

I had to make the same decision with my 70D. Was with Allstate for years and love our agent, but his quote was 3x more than other companies and i just wasn't willing to pay his premium for the same coverages.