Insurance rates on the raise

[Keith909man]

Higher then normal claims on the Model S/X
And repair cost has insurance companies re thinking

US insurer hikes Tesla premiums due to 'higher-than-average' claim rates

 

[azred]

Misleading. Yes, AAA has been in the news for raising rates -- and this isn't the first time we have heard similar news about Tesla insurers -- but that's why everyone needs to shop around. I just renewed and my rate was not increased -- and the rate was very reasonable. Maybe all insurers wil eventually greatly jack up rates but they haven't yet and posting threads with misleading titles like this serves no one -- except possibly Tesla shorts grasping for yet another reason to bash Teslas.

 

[kort677]

Higher then normal claims on the Model S/X
And repair cost has insurance companies re thinking

US insurer hikes Tesla premiums due to 'higher-than-average' claim rates

the repair cost ratio of the tesla is extremely high versus other high end vehicles. the insurance companies were bound to react like this to the astronomical costs of body damages to a tesla.

 

[sdorn]

State Farm increased the rates on all four vehicles I have insured with them this year by around 20%. They said it was an across the board rate adjustment. I haven't had any accidents / tickets / etc. that would have caused my rates to go up.

I have thought about shopping around, but honestly the service I get and the relationship I have with my SF agent is worth more than a few hundred bucks a year in savings.

 

[Reciprocity]

State Farm increased the rates on all four vehicles I have insured with them this year by around 20%. They said it was an across the board rate adjustment. I haven't had any accidents / tickets / etc. that would have caused my rates to go up.

I have thought about shopping around, but honestly the service I get and the relationship I have with my SF agent is worth more than a few hundred bucks a year in savings.

I had AAA before this hike, but switched to Alstate. Was surprised it was cheaper then AAA for home and auto. Before that, I had a hard time finding cheaper, including USAA.

 

[flankspeed8]

Misleading. Yes, AAA has been in the news for raising rates -- and this isn't the first time we have heard similar news about Tesla insurers -- but that's why everyone needs to shop around. I just renewed and my rate was not increased -- and the rate was very reasonable. Maybe all insurers wil eventually greatly jack up rates but they haven't yet and posting threads with misleading titles like this serves no one -- except possibly Tesla shorts grasping for yet another reason to bash Teslas.

I don't see how this is misleading.

AAA raises Tesla insurance rates 30 percent; company disputes analysis

"AAA combed through its own data and found Model S and Model X owners had abnormally high claim rates.

The claim rates were also much costlier than competing vehicles in the Model S and Model X's respected classes."

Sounds like it is based on fact. AAA is not the only insurer that has been struggling with how to underwrite this vehicle which is clearly in a class by itself. IMO, people are taking risks using AP that they would never rationally do. I am sure this is a part of it. Tesla has not helped themselves with their lack of repair network, and excessive wait for replacement parts. This will get better though.

This is not an attack on AP...Clearly AP has prevented many serious accidents, but there are reports readily availably how it may have contributed to accidents that would have never occurred if the driver was in full control. Example, driving right into temporary lane dividers.

 

[azred]

the repair cost ratio of the tesla is extremely high versus other high end vehicles. the insurance companies were bound to react like this to the astronomical costs of body damages to a tesla.

Tesla's recent announcement that they will be opening body shops may help, eventually, even given the special challenges of Tesla aluminum bodies. Of course I know Tesla Service is currently pricey so body work presumably will be too, at least until the numbers of Teslas skyrocket with Model 3's introduction.

 

[azred]

I don't see how this is misleading.

AAA raises Tesla insurance rates 30 percent; company disputes analysis

"AAA combed through its own data and found Model S and Model X owners had abnormally high claim rates.

The claim rates were also much costlier than competing vehicles in the Model S and Model X's respected classes."

Sounds like it is based on fact. AAA is not the only insurer that has been struggling with how to underwrite this vehicle which is clearly in a class by itself. IMO, people are taking risks using AP that they would never rationally do. I am sure this is a part of it. Tesla has not helped themselves with their lack of repair network, and excessive wait for replacement parts. This will get better though.

The title of the thread is what is misleading. I guess I could start a thread "insurance rates on Tesla not on the rise" since that was the case for my insurer.

 

[PeteP]

Much of this is Tesla's fault. There are many stories out there about long waits for replacement parts, limited numbers of qualified body shops, etc. Yes, they are working on it, but the damage here is done (no pun intended). When a car sits at a repair shop for weeks and weeks waiting for expensive parts, the carriers are paying for rental cars. When I had my Model S in for some relatively minor body work, the rental car bill was bigger than the bill for the body work.

 

[RayW]

Much of this is Tesla's fault. There are many stories out there about long waits for replacement parts, limited numbers of qualified body shops, etc. Yes, they are working on it, but the damage here is done (no pun intended). When a car sits at a repair shop for weeks and weeks waiting for expensive parts, the carriers are paying for rental cars. When I had my Model S in for some relatively minor body work, the rental car bill was bigger than the bill for the body work.

Same for me, as well. I'm having some minor repair work done on my Tesla now (waited 6-weeks for parts) which costs >$2,400, but the identical work on my BMW 3-series last year cost <$1,000 and took 1-week.

 

[Uncle Paul]

Was with AAA for over 25 years. When they quoted on my new X it caused me to shop around.

I ended up moving my 3 autos, 2 bikes, boat and house to another company that made it easier for me.

I also moved my roadside service to "honkforhelp.com"

 

[kort677]

I also moved my roadside service to "honkforhelp.com"

isn't that a redundant for a tesla owner?

 

[frankp]

Was with AAA for over 25 years. When they quoted on my new X it caused me to shop around.

I ended up moving my 3 autos, 2 bikes, boat and house to another company that made it easier for me.

I also moved my roadside service to "honkforhelp.com"

Same here... I was with Mercury for 15+ years. When I received the Quote for my new S in March it was soo high I had no choice to shop around. Ended up moving all my 3 cars to Geico. While at it moved 4 cars from other family members over as well ... Not sure I trust the AAA findings... Perhaps naive but I have the perception that my S is a safer car. I would like to see some real statistics on accident rate for S/X versus industry.

 

[AmpedRealtor]

The cost of body work on S/X is absolutely astonishing. This does not surprise me one bit and should be taken seriously by Tesla. Tesla is partly to blame here for their completely inept handling of parts requests from those body shops. It's unbelievable that someone would have to wait 6 months to have a bumper or quarter panel repaired or replaced. What body shop wants to have an extra car sitting around for so long, with all of the associated liability? There's probably an upcharge for that.

 

[kort677]

in addition to the additional costs of providing a replacement vehicle during that extended wait for parts.

 

[Reciprocity]

Instead of crying foul, maybe we should just post our Ins. company, state and rate and people can find the cheapest insurer and switch to that one because its clear they know what they are doing. Ill start:

Alstate, IL - 3 cars but the Tesla Model X added $90/Mo. A fairly bare bones plan.

 

[kort677]

Instead of crying foul, maybe we should just post our Ins. company, state and rate and people can find the cheapest insurer and switch to that one because its clear they know what they are doing. Ill start:

Alstate, IL - 3 cars but the Tesla Model X added $90/Mo. A fairly bare bones plan.

nice plan however there are many components to the rate quoted to person for auto insurance. some of these variables are amount of miles driven, levels of coverage, location of home, location of work, education levels, financial reports, driving records, accident records, claim records, number of drivers in the household, ages of additional drivers, additional drivers driving/accident history I am sure that this is far from a complete list of things that are considered when you are being underwritten but the point is that what person A pays for coverage cannot be compared to person B, even if they reside in close proximity to each other.

 

[Kurt'sX]

Tesla's recent announcement that they will be opening body shops may help, eventually, even given the special challenges of Tesla aluminum bodies. Of course I know Tesla Service is currently pricey so body work presumably will be too, at least until the numbers of Teslas skyrocket with Model 3's introduction.

I have to agree.....once Tesla has a larger fleet of vehicles on the road, the cost of repairs will drop. I still look at them as a start up compared to the 100 year history of Mercedes, Ford or GM. My hope is that self driving vehicles will eventually flood our highways and accidents will all but be eliminated. (what a wonderful thing the future is!!)

 

[Reciprocity]

nice plan however there are many components to the rate quoted to person for auto insurance. some of these variables are amount of miles driven, levels of coverage, location of home, location of work, education levels, financial reports, driving records, accident records, claim records, number of drivers in the household, ages of additional drivers, additional drivers driving/accident history I am sure that this is far from a complete list of things that are considered when you are being underwritten but the point is that what person A pays for coverage cannot be compared to person B, even if they reside in close proximity to each other.

Obviously, but it could give some guidance to folks who believe they are overpaying. Enough to prompt them to get a quote. If you are in IL and paying 150 on AAA and you have 3 cars, well maybe you want to try Alstate.

 

[kort677]

Obviously, but it could give some guidance to folks who believe they are overpaying. Enough to prompt them to get a quote. If you are in IL and paying 150 on AAA and you have 3 cars, well maybe you want to try Alstate.

maybe you're correct but I think that you're focusing on only one piece of a complex puzzle.