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MASTER THREAD: Tesla Insurance Services in California

Discussion in 'California' started by BobAbooey, Aug 28, 2019.

  1. OCR1

    OCR1 Active Member

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    But they take 4-6 times longer to repair so that has to be offset by the higher rental costs while your car is down...assuming they cover rentals for the duration of the downtime. I haven’t looked into that.
     
    • Funny x 1
  2. Daniel in SD

    Daniel in SD Active Member

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    Doesn't effect liability coverage (which is all that's required in CA). Has anyone verified that liability coverage is 4-6 times cheaper?
     
    • Funny x 1
  3. Big Dog

    Big Dog Active Member

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    Thanks for posting, and yes I concur with you.

    Just had my D's Audi A3 repaired, and while the Bay Area body shop's list price was $145/hr, the insurer got them to accept $105. Other insurers use body shops with a contract rate of <$75/hr. Given labor costs in California (and required benefits), it's hard to see how Elon can squeeze much out of the major costs of the repair, which is labor.

    Now, of course, Elon could eliminate the markup/profit on parts by selling the parts to the Tesla body shop at manufacturing costs, but that just means the Auto division makes less money so the insurance division can make more. (from the right pocket to the left?) But still, the costs are still there. Other autos can use after-market repair parts to save money. Tesla's cannot.

    Yes, Tesla can eliminate commissions bcos they have no brokers, but then many other insurers already have a similar no-broker sales models, and built into their competive pricing models.

    Like I said, just not seeing the value-add to make it worth the distraction of adding a new, disparate product.

    But the more I think about it, perhaps this is just the first step for insuring RoboTaxis, which I'm guessing traditional insurers won't want to touch.
     
  4. Watts_Up

    Watts_Up Active Member

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    My insurance gives a discount if you have an anti-theft GPS tracking device, but don't recognise Tesla tracking capability
    because I don't have a monthly membership like General Motor On-Star, BMW Assist, Mercedes-Benz mbrace, or Lexus Enform...
     
  5. Big Dog

    Big Dog Active Member

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    You are not missing out on much. I just checked my policy and the discount was $12/yr which makes sense since Tesla's have an extremely low theft rate. (no chop shops as there is no market for 'ahem' previously used equipment/parts).
     
    • Like x 1
  6. Daniel in SD

    Daniel in SD Active Member

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    Model 3 battery packs sell for $10k+ on eBay. That's not nothing but they probably have serial numbers...
     
  7. Pkmmte

    Pkmmte Le meow

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    If that were the case, my quote from Tesla wouldn't be almost 4x higher than my current policy, for less coverage. :/
     
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  8. Big Dog

    Big Dog Active Member

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    Even if true, it won't be long for the other insurers to see the safety factor and price their policies accordingly. A big SUV is already a lot safer than say, a small tix box (and insurers know it with certainty). Offsetting the safety feature, however, is the higher cost of replacement parts. For Tesla's, there is one supplier (OEM-TLSA). For every other manufacturer, there are plenty of high quality after-market parts available. And OEM is more costly than after-market. Heck, one can even put Toyota OEM parts in a Lexus, to save money.


    7 of the deadliest cars on the road
     
  9. djroberts

    djroberts Member

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    My hypothesis:
    1. Tesla creates algorithm based on a bunch of assumptions and advertises they will give a lower rates by x%
    2. People get quotes that are not savings at all.
    3. Tesla takes down site to fix algorithm.

    My guess is that they didn't tune the algorithm for initial low liquidity to cover risk. As more people get insured it'll be cheaper because their risk profile reduces. They need to calculate it as if they already have so many insured or they'll prevent anyone from buying it to begin with.
     
    • Like x 1
    • Disagree x 1
  10. ElectrekPanda

    ElectrekPanda Member

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    Progressive is taising my rate from $120 to $152 per month for my next 6 months. I heard they get you by offering a low rate and then raise it up later.

    This is Tesla plan is very timely because I will be able to save.
     
  11. OCR1

    OCR1 Active Member

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    I got a quote while the website was still up. It was around $500 more per year than Amica for less coverage. And then the site went down and hasn’t been available since. Not a great start.

    Couldn’t they at least put an explanatory message up about why they are down, rather than a “404 error” and “I’m afraid I can’t do that” message.
     
  12. Petrocelli

    Petrocelli Member

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    Tesla promises cars in two weeks, and gets them to you 2 months later. Would you really trust these knuckleheads if you got in an accident and got sued?
     
    • Like x 5
    • Informative x 1
    • Disagree x 1
  13. tvad

    tvad Member

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    On the upside, SpaceX successfully launched and landed the Flyin' Putt Blug!
     
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  14. Pkmmte

    Pkmmte Le meow

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    Looks like Tesla just updated their algorithm and is now quoting me half as much as before for the same coverage.

    So now their quote is only twice as much as what I currently pay Geico.
     
    • Informative x 2
  15. Pkmmte

    Pkmmte Le meow

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    Looks like Tesla just updated their algorithm and is now quoting me half as much as before for the same coverage.

    So now their quote is only twice as much as what I currently pay Geico.
     
    • Funny x 2
  16. OCR1

    OCR1 Active Member

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    My quote is lower but still higher than Amica. And since I have multiple lines of insurance it’s still not an option for me. Nice to see it’s getting more competitive though. I just don’t see this being a practical solution for anyone that needs insurance for more than just their one Tesla.
     
    • Like x 2
  17. devilmountain

    devilmountain Member

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    I just re-quoted Tesla after their algorithm update. Tesla is 363 more a year for similar coverage for two model 3s with AAA. A much better improvement from yesterday but still cheaper through a traditional company. I at least have a good option if my rates go up.
     
  18. Evoforce

    Evoforce Active Member

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    Yes, because they have to abide by the insurance laws that are in place for each State that they will do business.
     
    • Disagree x 1
  19. Petrocelli

    Petrocelli Member

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    Maybe these guys should be building service centers rather than selling insurance.
     
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  20. Evoforce

    Evoforce Active Member

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    #100 Evoforce, Aug 29, 2019
    Last edited: Aug 29, 2019
    How about hiring people to manage their phone calls for a plethora of things including for their insurance. So you get in a crash and there is no one to take the claim or respond to the info you left for them... Sound familiar? You know, can't reach a live person to get any answers or resolution and they don't respond to any mail...
     
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