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Model 3 and auto insurance

Discussion in 'Model 3' started by flankspeed8, Feb 15, 2016.

  1. flankspeed8

    flankspeed8 Member

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    The S and X threads contain numerous discussions about difficulty or high expense insuring these vehicles as well as repair problems. One of the issues is with new vehicles as insurers do not have a good track record to gauge the risk. In my opinion, if the Model 3 is going to be truly mass market, the auto insurance has to be similar to other cars in the "class." When people buy a new car like a Tesla, is insurance really even a factor or do they pay whatever they have to? Not good to have your gas savings plowed into higher insurance premiums (and by virtue of higher MSRP) registration fees. Is this even a valid concern? Any insurance people want to add some insight? also what can Tesla do to help mitigate problems?
     
  2. vforvortex

    vforvortex Member

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    What are the insurance rates for the Model S and X?
    What are the insurance rates that other cars in the Model 3 "class" pay monthly?
     
  3. flankspeed8

    flankspeed8 Member

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    Obviously this is highly dependent on your driving record, state of residence and insurance company. There are some companies who according to the OP's will not even insure the S or the X. I hope this is not the case with the 3 as whatever issues the insurance companies have need to be fixed.
     
  4. gregincal

    gregincal Active Member

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    Maybe some people have had problems insuring the Model S, but most of what I've heard has been a problem. Certainly for me it wasn't much more expensive than my previous Audi A3, and I was insuring the Model S during the first few months of production. Performance models tend to be more expensive to insure, so I imagine people might pay a lot for a P90DL. I don't foresee a problem with Model 3 insurance.
     
  5. pmadflyer

    pmadflyer Member

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    I thought it was the aluminum and certified labor costs that were responsible for the insurance rates being higher for some. I hope the steel intensive Model 3 fairs better in that regard.
     
  6. tga

    tga Active Member

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    In the near future, there will be tons of aluminum qualified autobody shops repairing aluminum-bodied F150's every day. That should help drive down S repair costs (and insurance) long before the 3 is out, anyway.
     
  7. ModelNforNerd

    ModelNforNerd Active Member

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    Just to sort of "ballpark" it:


    In Mass, with USAA, and a "perfect" driving record, the cost to insure a 2015 Audi A3 (with no lien) runs me $648/yr or $54/month. That's full coverage, double the minimum liability coverage, and a Collision/Comp deductible of $1000, so of course, your results may vary.
     
  8. trinites1a

    trinites1a Alfred | X60D

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    I recently got a quote for a Model S 85D and I live in NJ.. Im 30 and my wife 3 and we have 2 children. The Model S would be leased.. The quote for both vehicles came to just just about 1300... up from $800 which included a 2014 QX60 & 2014 Rogue both AWD both with navi and so on. For the Model 3 I definitely dont think ti would be that high probably similar. I have Geico.
     
  9. ottopilot

    ottopilot Member

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    Our 2016 Model S is about 5% more than our 2014 Suburu Crosstrek.
     
  10. cmann

    cmann New Member

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    A lot of the price of insurance is from the circumstances of the car and driver. Geography and security are large considerations in getting an affordable quote.

    it's usually a safe bet to insure niche vehicles with a broker, but it would be a braver man than myself who called the model 3 niche in a tesla community.
     
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  11. Booga

    Booga Member

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    As someone who is involved with the insurance industry, I think one of the factors with these cars is that the frequency of claims is less. This is probably due in part to the safety of the vehicles, which really began to improve with sensors to help avoid front end collisions. At the same time, when an accident does occur, the severity is going up. I believe most insurers are seeing this being driven by cost of repairs rather than the accidents somehow being "worse." The repairs are going up probably for many reasons, but one of them is that these additional sensors are apparently more manufacturer specific and so there are fewer places that work on them and fewer non-OEM parts available to keep costs down.

    Most auto manufacturers make more money with service and parts rather than the sale of the car, and I wonder if that is Tesla's plan as well. If it is, and they expect these repair services to become a part of it, then that will impact us via the insurance pricing mechanism. One way or another, we pay for it. I just hope Tesla isn't making the true cost of the Model 3 by increasing future revenue from repairs, parts, servicing, etc. (I do know they no longer require the servicing on the Model S to keep the warranty active and so I'm very thankful for what they're doing and don't want to raise any conspiracy theories)
     
  12. gregincal

    gregincal Active Member

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    They have explicitly said they are running all Tesla service to be revenue neutral. It is not a profit center.
     
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  13. Sharkbait

    Sharkbait Member

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    Many, many years ago I went shopping around for auto insurance before making my purchase. Because the car I was looking at had three engine options, one of the first questions they asked me was, what engine? I wonder if any MS owners have been asked about 'insane' or 'ludicrous' equipped vehicles?
     
  14. Booga

    Booga Member

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    I wouldn't be surprised. If it's not included yet, it might be as Tesla brand vehicles become more common.
     
  15. AC238

    AC238 Member

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    #15 AC238, May 22, 2016
    Last edited: May 22, 2016
    I find that to be amazing.

    The Model 3 should be less since it is steel. Aluminum welding is much more difficult and rare.

    If I'm not mistaken it will be at most aluminum panels on a steel unibody frame similar to a new Ford F-150 . According to IIHS, "Total repair costs for the front and rear damage combined were 26 percent higher for the aluminum F-150. Extra time to repair the aluminum body accounted for the higher price to fix frontal damage, while higher parts costs pushed up the repair bill for the rear damage." Ford F-150 crew cab earns IIHS Top Safety Pick

    Depending on how the panels are attached (adhesive, welds, fasteners such as rivets , etc) it will determine how easy it is to repair.
     
  16. StraightDave

    StraightDave Member

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    It's the repair cost that drives up the price of insurance for electric cars. A quick google search and insurance for elective vehicle is 20% higher.
     
  17. FirstSea

    FirstSea Member

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    I just did a quick quote with geico for a base model S, quoted me for $250 lol nope.

    Fairly sure the quote will be less with a broker, but I don't feel like finding out right now.
     
  18. Booga

    Booga Member

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    $250 per month?
     
  19. ModelNforNerd

    ModelNforNerd Active Member

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    Man, I am glad I have USAA.

    I doubt it will cost me more than $750/yr to insure my 3.
     
  20. Booga

    Booga Member

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    USAA is the leader in low cost insurance - very few people leave and so as a percentage of revenue, they spend really little trying to replace customers who are leaving. (High retention is what we're seeing)

    Geico is probably the next best in terms of price, all things considered, because their expense ratio is really low as well, though not rock bottom like USAA. After that, it varies, but Geico should still be pretty good across the board. They could be more on an individual car if they don't like the risks though, and this is there way of saying "Thanks, but no thanks" and encouraging you to go elsewhere. It happens all too often in insurance (it's an actuarial thing about risk selection) and so I tell people to not get stuck to a certain brand. Sometimes, they really just don't want your business, and it's not a personal thing.

    For anyone considering GEICO... pick up a share of Berkshire Hathaway (The B share is all you need) and tell them when you get your quote. I got another 8% off of my premium for being a shareholder. The B share paid for itself relatively quickly.
     
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