Welcome to Tesla Motors Club
Discuss Tesla's Model S, Model 3, Model X, Model Y, Cybertruck, Roadster and More.
Register

Insurance Tripled after adding Tesla

Wennfred

Active Member
Supporting Member
Apr 4, 2019
3,056
2,151
San Diego
Not sure how you guys are getting all these low quotes, I've been averaging $350-450/mo. I am in my mid 20's, but sheesh that insurance is too high. I've also put my mother the primary driver of the Tesla. Cheapest I got was $1728/6mo with progressive... im really hoping Tesla Insurance is much cheaper.
Need to get to 26 before it drops some in price.

Fred
 
Seems like every community has their own insurance rate policies. Only way to get the best deal is to shop around.
I had to switch from AAA (was a +25 year member) to another company to get a competitive rate for my Tesla. Ended up moving my House, Business, Boat and all other vehicles at the same time. AAA might want to take another look at how many loyal customers they are driving away with their Tesla pricing.
Actually, I sent Southern Calif. AAA a Twitter direct message yesterday, mentioned the comments hereabouts, and suggested they review their rates. But I'm sure it will be ignored.
 
  • Like
Reactions: Mrbattery123
Hello! proud owner of a used (new to me) model 3 LR. Just got back from going to the insurance office. My insurance tripled in price! I had a AMG before so I figured it would've been roughly the same. Should I shop around or should I go with Tesla insurance? anyone recommend Tesla insurance? and how much do you pay? thank you.

i had allstate for decades! when i got model 3 my insurance also went up drastically. at least doubled. insurance rep stated its expensive to insure teslas. ok, well i went to tesla ins and i got slightly more coverage and could lower my deductibles and ended up paying less than what i was on my old combustion engine car i had prior. if you can give tesla a serious look.
 
OP has gone from $220 a month in his old car to $300 a month with Progressive in the Tesla. Unpleasant, but no where near triple.

OP, you may wish to to break the premium down into its parts to see where the differences are and whether you are comparing apples to apples. Also, mention any accidents or moving violations in the past 24 months

thats for the minimum, I had full coverage with AAA
 

dmurphy

Active Member
Supporting Member
You mentioned you are in your "mid 20s". You may or may not be aware of some facts about car insurance.

1. You are likely aware that, before age 25, almost all insurance companies charge through the nose because statistically, under 25 year olds are more risk, and 25 year old males (handle Mrbattery) are the most likely to get into accidents.

2. Area matters, credit score matters, how far you drive matters, and how many losses (and what they cost) a specific insurance company has with a specific car matters. When one company is way out of line with others, they are telling you that they basically dont want to insure that car, because their loss models have shown they need to charge XXX to be profitable with it.

Thats going to be different per company, especially with a "new" car company like tesla, where the costs to repair are fairly high because tesla only has few authorized body shops etc.

3. Because of point 2, it is virtually pointless for people to start comparing rates online, because what one person is charged has nothing to do with what another person will be charged, as it relates to insurance. a Lot of people try to start threads on car forums with a subject like "so, whats everyone paying for insurance on XXX model car??" and that information is completely useless because it has zero to do with what that specific person is going to be quoted, for their address, zip code, age, number of tickets, credit score, etc etc.

So, TL ; DR, ignore any of these prices you are seeing others quoted who are not "20 something males in Los angeles, driving the amount of miles you told the insurance company you drive, with a credit score similar to yours" (or, since you dont know any of that about them, basically ignore the pricing you see from everyone else).

Just quoting this for truth. It's absolutely the case that insurance really isn't comparable.

@Mrbattery123, as an example.... jjrandorin and I drive similar vehicles, of a similar age, similar family etc - but on opposite coasts. Our rates and coverage are nothing that can correlate.

I have almost the perfect car insurance situation: Middle age, homeowner, married, excellent credit score, no accidents or tickets, live in a low crime, top-10 median income county, in a no-fault state ... Also a 20-year customer who carries property & umbrella policies with the same insurance carrier ... All of those things factor into my insurance rate. Any one of those parameters change, and the rates could change - drastically. I pay $70.70/month for my Model 3 - it's about $2 less than my previous Cadillac's rate.

All this is to say - you just can't compare directly. Any one of my parameters change (for example, I'm a few years away from my son getting his drivers' permit...) - and the rates could change wildly. My rate will double - at least - once he has his learner's permit.
 
  • Love
Reactions: jjrandorin
That is literally marital status discrimination. If they want to assess risk by age, that's covered by knowing the driver's age. Driving record figures heavily here, as should location and amount of miles driven per year.

Obviously, unmarried people will skew younger (highest risk) and very old (higher risk). There are outliers who have simply made a lifestyle choice never to marry and some may want to be married but aren't for any reason.

The marriage distinction is a dishonest use of statistics because there's a natural group selection that selects for the highest risk people based on this metric. But, this discrimation is wildly unfair to median-age drivers with clean records who are otherwise low-risk—getting dinged solely for a lifestyle choice that should be unthinkable from a car insurance company.

If I'm 52 with zero accidents or tickets, why should I be dinged for not being married?

One could also make the argument that people with or without kids have fewer/more accidents, but it would be illegal to penalize people who have kids or are child-free. It's exactly the same type of thing.

Or, people who are religious could get in to fewer/more accidents than people who don't. It would also be illegal (as it should be) to charge people more or less but for their religious practices or lack thereof.

How is the choice to be married/unmarried (which isn't always in one's control) a fair point of discrimination for anyone when it comes to car insurance? When things change and marriage isn't so popular, these unfair practices will see more challenges.

There's a reason that it's illegal in Massachusetts and the European Union, and it's not because it's just another way to assess risk. It's an invasion of privacy and also a lifestyle choice penalty/perk, akin to dinging someone for having kids/not having kids or being religious or not.

I don't mean to derail the thread here but man am I tired of being asked about my marital status by vehicle insurance companies. It's none of their business, and they should not be allowed to charge me more because I have made the choice not to marry.

Disagree. You could make the same argument for being young. That you a perfect driver, so why should you be discriminated against. Fact is the statistics that show for the same demographics, married are less risky than unmarried.
 

StellarRat

Active Member
Jan 8, 2014
1,527
1,512
Pacific
Hello! proud owner of a used (new to me) model 3 LR. Just got back from going to the insurance office. My insurance tripled in price! I had a AMG before so I figured it would've been roughly the same. Should I shop around or should I go with Tesla insurance? anyone recommend Tesla insurance? and how much do you pay? thank you.
Mine went up about 45%, BUT remember a new expensive car is always going to raise your collision coverage a lot no matter what brand it is. That simply reflects the higher replacement cost of the vehicle if it's totaled. I think the high cost of repairing a Tesla will add more to that than most cars as well.
 

SageBrush

REJECT Fascism
May 7, 2015
13,275
18,036
New Mexico
BUT remember a new expensive car is always going to raise your collision coverage a lot no matter what brand it is.
I think that is a pretty good rule of thumb presuming all else is equal, but even then we should remember that insurance rates are also strongly affected by the experience of the group of owners in the same insurance pool. That pool is pretty local.

My collision premium is $20 a month with a $500 deductible for my Model 3. No doubt part of the reason for my low rate compared to OP is my age, driving record, etc; but the other thing in play is that Tesla owners in my locale are the stereotype of safe, boring drivers. I see them driving around town and on the highways, they might as well be driving a Toyota Prius (and many were, a few years ago.) Actually, I cannot think of a single instance of seeing a Tesla in my city weaving through traffic or barreling down the highway in the far left lane.

I've always guessed that Comp mostly represents hail, theft, glass and vandalism claims for the pool. My premium of $6.3 a month (with a $50 glass deductible) seems low to me due to glass alone but I'll guess that claims are ~ zero for the other reasons in my pool.

I see the flip side of this local effect in my uninsured motorist cost. Even though I spend my days in zip codes that have very low uninsured motorist numbers, that is not the case within a 50 mile radius so I pay quite a bit more now than I did when I lived in Colorado.
 
Last edited:

dmurphy

Active Member
Supporting Member
Mine went up about 45%, BUT remember a new expensive car is always going to raise your collision coverage a lot no matter what brand it is.

Not always true. My Model 3 cost LESS to insure than the 2-year-old Cadillac it replaced. Vehicle value went up, insurance went down. It's a pretty complex actuarial formula ....
 
  • Like
Reactions: M3BlueGeorgia

zhu-

custom title
Oct 24, 2018
972
854
NJ
Definitely shop around. I had a 2012 C63 AMG with insurance around $180/mo. My previous C300 was around $110/mo, my current Model 3 has more coverage, lower deductibles and only $40/mo. I've always went with either Progressive or Geico, but are usually within 10% of each other while others can be double or triple the price.
 
  • Like
Reactions: M3BlueGeorgia

ItsNotAboutTheMoney

Well-Known Member
Jul 12, 2012
11,659
9,757
Maine
Eventually all 50 states will stop using marital status as a factor for determining cost/risk. Marital status discrimination is illegal in Massachusetts and the European Union in this area. I still find it CRAZY that any insurance company gets away with this, though I understand they must be doing what they're legally allowed to do under the law.

Of course, it would be false for anyone to claim marriage has an 'effect' on drivers with the divorce rate in the U.S. being over 50%. The reality is that unmarried persons skew heavily young (highest risk), very old widows/widowers (high risk), and outliers who find themselves unmarried for any reason or simply don't want to marry, not to mention in our recent history when some people couldn't get married even if they wanted to but for their sexual orientation.

Marital status discrimination of this type needs to be abolished. It'll happen given that fewer people are marrying and also marrying later, but right now it's absurd when insurance companies ask about my marital status and then want to charge me more because I've chosen never to marry. None of their business. It's like trying to charge me more for not having kids or not going to church.

/rant

This being TMC I can feel that it's reasonable to ask the following question:
Are there any actuaries here who specialize in automotive insurance who can comment on the statistical significance of marriage?
 
i had allstate for decades! when i got model 3 my insurance also went up drastically. at least doubled. insurance rep stated its expensive to insure teslas. ok, well i went to tesla ins and i got slightly more coverage and could lower my deductibles and ended up paying less than what i was on my old combustion engine car i had prior. if you can give tesla a serious look.

I dumped Allstate as well, for the same reason. After having them for over two decades.

Ended up with Travelers, and eliminated the price increase.
 
  • Like
Reactions: lUtriaNt

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
14,322
18,156
Riverside Co. CA
I dumped Allstate as well, for the same reason. After having them for over two decades.

Ended up with Travelers, and eliminated the price increase.

Come to think of it, when I finally decided to replace AAA, Travelers was one of the companies I requested a quote from. The company I work for gets us employee discounts for travelers, met life, and liberty mutual. Travelers was significantly cheaper on auto insurance than both met life and liberty mutual (and of course the AAA that I had). This is covering both my model 3p and my wifex X3 M40, so 2 fairly expensive cars.

Not going to say what the price is because as I said earlier, that part is irrelevant for others. What IS relevant though, is that travelers seemed to be significantly cheaper for the auto insurance than the other two, and that seems to jive with several other posters around the country who experienced similar with travelers.

I ended up with met life, because travelers was significantly more expensive on the HOME insurance, and the total price of both together was cheaper with met life than travelers or liberty mutual (and all three were significantly cheaper than AAA, which depressed me because I had been with AAA for so long and dont like moving this stuff around).

I also checked tesla insurance, which was competitive with travelers and met life, but I wanted everything together (home, both cars etc). i did not want a situation where one car was insured by one company and the other one by another.. I just didnt want that.
 

SageBrush

REJECT Fascism
May 7, 2015
13,275
18,036
New Mexico
This being TMC I can feel that it's reasonable to ask the following question:
Are there any actuaries here who specialize in automotive insurance who can comment on the statistical significance of marriage?
Presuming they bother to read this thread.

I'll guess that 'married' is actually a marker for those with children. Anybody know how 'divorced' is treated insurance wise ?
 
  • Funny
Reactions: Spacep0d

Products we're discussing on TMC...

About Us

Formed in 2006, Tesla Motors Club (TMC) was the first independent online Tesla community. Today it remains the largest and most dynamic community of Tesla enthusiasts. Learn more.

Do you value your experience at TMC? Consider becoming a Supporting Member of Tesla Motors Club. As a thank you for your contribution, you'll get nearly no ads in the Community and Groups sections. Additional perks are available depending on the level of contribution. Please visit the Account Upgrades page for more details.


SUPPORT TMC
Top