Insurance is getting out of hand

[meloccom]

Having been in the insurance industry some time back, I can tell you that the vehicle rating factor initially is a business decision, based on the experience of other similar car types. After a few years of specific claims experience and a large enough sample size, the actual claims experience starts to have more influence over the vehicle rating factor which occasionally results in large changes in premiums. I think this is what’s happening with Tesla at the moment.

 

[raynewman]

I was with allianz until my renewal last year. Garaged, low km, rating one, never made a claim….and I was offered $4k renewal from the previous yar which was under 1K, so I moved on.

I guess I'll be moving on next year.

 

[caskings]

My renewal came in from CBA Insurance (Comminusre) for my Model 3 LR. Went from 1,311.08 to 1,922.10, time to go shopping around.

 

[OzVic]

Having been in the insurance industry some time back, I can tell you that the vehicle rating factor initially is a business decision, based on the experience of other similar car types. After a few years of specific claims experience and a large enough sample size, the actual claims experience starts to have more influence over the vehicle rating factor which occasionally results in large changes in premiums. I think this is what’s happening with Tesla at the moment.

Are Tesla drivers really that terrible drivers? There can't be THAT many accidents in the grand scheme with the Tesla driver at fault. I know for a fact the Tesla has saved me a couple of times with AEB or BEEP BEEP BEEPing. This didn't happen in my previous Subaru (may it RIP).

Or is this some type of reverse punishing because all the brands boil down to just a couple of insurance conglomerates? Get their costs back from the expensive to repair car owners that weren't at fault as jacking up the premiums on the tradie's Hilux's with poor braking ability will cost them too much of their business?

 

[ZeeDoktor]

Never assume malice where incompetence (or perhaps ignorance in this case) can be an explanation.

Some contributing factors I've heard from an acquaintance working in the insurance business are:
- Teslas are (were) new cars with limited history available to gauge cost by (as @meloccom already said)
- Teslas are expensive cars. Even the lower end models are expensive by comparison. A Mazda 3 is size- and utilitywise comparable to a Model 3. Yet it retails at less than half the price.
- Damage that on a Mazda 3 is repairable at moderate cost is often considered a write-off with Teslas. If the battery cage is deemed to have made contact with any part of the world it ordinarily wouldn't come close to, Tesla won't touch it for repairs. That's a full battery pack replacement. Starting price somewhere in the vicinity of $30k.

It would be interesting to see some accident statistics. Elon used to claim that Teslas are less than half as likely to be involved in a serious crash than ordinary vehicles. I wonder if that holds true. Do any road safety authorities in Oz make that data public?

If that is in fact true, the doubling of the cost should be compensated by the halfing of the likelihood of a crash - therefore the insurance price should be about the same as a comparable ICE.

 

[meloccom]

Are Tesla drivers really that terrible drivers? There can't be THAT many accidents in the grand scheme with the Tesla driver at fault. I know for a fact the Tesla has saved me a couple of times with AEB or BEEP BEEP BEEPing. This didn't happen in my previous Subaru (may it RIP).

Or is this some type of reverse punishing because all the brands boil down to just a couple of insurance conglomerates? Get their costs back from the expensive to repair car owners that weren't at fault as jacking up the premiums on the tradie's Hilux's with poor braking ability will cost them too much of their business?

No, not necessarily, cost of parts, repair procedures and speed of parts supply can add to the total cost of of a repair. In recent times with world wide parts supply shortages, a number of cars are being written off because the cost of a rental car pushes the total repair cost up too far or complicates the relationship with the insured, making it easier or more likely to proceed to a total loss. At least that’s my speculation based on previous experience.
Just before I left the industry we received a complaint from the importer of European manufacturer that was returning to the Australia market about the cost of insurance. We were able to demonstrate using a basket of crash parts and a low speed crash test why their premiums were so high. We eventually negotiated a reduction in some crash parts for a reduction in insurance premiums.

 

[P100D_Me]

This has been an interesting read. My 2017 P100D Model S renewal came in and was $600 more than last year (over $3K).
Turns out my agreed value was way above reality, but to be fair I don't check market value until it is time to sell the car.
Anyway reducing that agreed value down to something just above what I saw on car sales resulted in a $500 reduction.
So it is worth checking this on your policy, I'm still not happy with the cost but the issue is essentially these are expensive cars to fix with long wait times on parts and people seem to keep making a lot claims on them (according to my insurance company). I am essentially being penalised because of others

 

[paulp]

This has been an interesting read. My 2017 P100D Model S renewal came in and was $600 more than last year (over $3K).
Turns out my agreed value was way above reality, but to be fair I don't check market value until it is time to sell the car.
Anyway reducing that agreed value down to something just above what I saw on car sales resulted in a $500 reduction.
So it is worth checking this on your policy, I'm still not happy with the cost but the issue is essentially these are expensive cars to fix with long wait times on parts and people seem to keep making a lot claims on them (according to my insurance company). I am essentially being penalised because of others

My 2018 model S is insured with the same company and same garage and same milage per year as my new EV that is worth 3 times as much. Both cars restricted to the same two rating 1 drivers. The premium difference is $20. I’m concluding therefore that the insurance price is a tesla thing not an EV thing.

 

[Jjdsyd]

This has been an interesting read. My 2017 P100D Model S renewal came in and was $600 more than last year (over $3K).
Turns out my agreed value was way above reality, but to be fair I don't check market value until it is time to sell the car.
Anyway reducing that agreed value down to something just above what I saw on car sales resulted in a $500 reduction.
So it is worth checking this on your policy, I'm still not happy with the cost but the issue is essentially these are expensive cars to fix with long wait times on parts and people seem to keep making a lot claims on them (according to my insurance company). I am essentially being penalised because of others

Can you let me know who you are using? I have been with Comminsure for a few years. Also a 2017 P100D. Max no claim bonus (have never made a claim), no tickets, 55 years old, car a year older and I drive ~ 7,000 km per year. My premium went from $2852 to $4619. WTAF?

 

[Craig 128]

Just got my renewal from CommInsure for my 2019 Model 3 SR+. Up 32% to $1,332.

 

[caskings]

Just got my renewal from CommInsure for my 2019 Model 3 SR+. Up 32% to $1,332.

I had a similar % rise from CommInsure. Ended up swapping to Allianz.

 

[locksmack]

Mine is up 84% with GIO.

 

[raynewman]

I had a similar % rise from CommInsure. Ended up swapping to Allianz.

Allianz seem to be the goto insurance company this year; I've got all my cars with them at least until next year.

 

[Punchbuggy]

I've just received my comprehensive renewal quote from NRMA - up another 25% for my 2020 M3 LR. GIO quoted almost 50% less than NRMA, with Allianz slightly more expensive (but still much cheaper than NRMA). By moving to GIO I've kept $1,200 in my pocket. That's significant.

 

[elddum]

Last year my 2020 LR3 was insured with APIA for $961; this year they want $1165 (an increase of 21% - no claims etc).
They also decreased the 'Amount Covered' by 10%. That all smells of daylight robbery.
I have a replacement quote from Allianz for $880 with an increased 'Agreed Value'.
Guess where it's going to be insured.

Welcome to the Insurance industry in Australia - a rort! A license to print money and no way you can avoid it.

All insurances (car, home, business) are going up significantly due to the high volume of claims over recent years in fires, floods, water damage given significant above average rainfall, etc and inflation. .. but like most things, the system is geared so they never lose. I live in a apartment complex (body corporate) and the insurance premium has doubled since last year for no reason (ie, no increase in claims, etc)... and even using a broker, cannot get a more reasonable insurance premium.

The insurance industry needs to be invstigated like the banks, although I don't think the Royal Commission really blunted the banks blatant profiteering at the expense of the average Australian.

 

[EatsShoots]

https://www.cnn.com/2023/09/13/business/inflation-car-insurance-rate-increases/index.html

Our rates are up 4x in last three years in NY but we added a third vehicle and two teen drivers. There are many threads here about nightmarishly long timelines for Tesla body work, which I have to believe impact insurance on these. For us replacing an most fully loaded ‘22 rav4 prime with a non-performance model y will command another ~$1k annual premium. That’s giving me serious pause on the purchase.

 

[Vostok]

All insurances (car, home, business) are going up significantly due to the high volume of claims over recent years in fires, floods, water damage given significant above average rainfall, etc and inflation. .. but like most things, the system is geared so they never lose.

Well it’s a bit like running a casino. If you’re losing money, you’re doing it wrong.

 

[jq371]

I have signed up to a NL with Maxxia.

The insurance they have used for me is $3244 pa

I just checked NRMA in was quoted $1700 (with windscreen protection and agreed value of the full cost of the car, plus if your car is written off in the first 2 years they replace your car with a brand new car)

Does anyone know, with NL, can you change the insurer you use? From what i understand is you can just advised them of the new insuraer and provide your policy details and then they cancel the insurancethey have organized and pick up with your new insurer. I'll need to check with them but for anyone in the know, does that sound right ?

 

[Jules22]

No idea with maxxia, but I know with Smartsalary there is the option to choose any insurer if you don't want to go with theirs.

I'd assume most NL would be the same.

 

[jq371]

ah thanks, cheers for that. Yeah looking around their website it looks like it can be changed.