Model 3 and auto insurance

[ModelNforNerd]

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.

I check all of the actuarial boxes (now that I've calmed down from my 20's....)

The only issue I'd even remotely have is the car itself.

But I'm an East Coast non-owner, and I live in one of the better concentrations of East Coast owners (Eastern MA).

So by the time I get my Model 3, USAA will have a better comfort level with the model. (supply chain for parts, service, etc etc), thanks to all of our West Coast friends. So, even though I'm still fairly jealous they will be driving their cars before I get mine...I do thank them for at least being the trailblazers as far as dealing with insurance companies who may not even have the Model 3 in their system yet.

When I put my A3 on my policy in 2014, I was very near the top of the list inside USAA as far as insuring the new sedan version. As soon as I had a VIN, I called for a quote, and they couldn't give me one. I had to wait about a week for them to upload the specs/stats for the newer model.

Shouldn't be a problem this next time.

 

[heysteveh]

As an interesting point of reference for insuring a Model 3 in the future, I have a 2014 Mercedes C250 Coupe. Sticker price was $40,645, 27-month lease based on a selling price of $33,234 after all rebates, discounts, etc. I live in the Phoenix, AZ area, and my insurance is with State Farm. I am a married male in my mid 50's with a perfect driving record, a multiple car discount, a low mileage discount, home insured through State Farm as well, so pretty much all the discounts. My current policy includes a $1,000 deductible, and a 100k/300k bodily injury, so pretty typical I think. My current 6-month premium is $343 which is less then $700 per year. Having lived in several major metropolitan areas, I have found the Phoenix area to be less expensive for car insurance than other areas I have lived in.

I am thinking that my car should be comparable to a new Model 3 in the insurance company's eyes as far as my car being a premium entry-level luxury brand, relatively expensive to repair in an accident, similar price point, high safety rating, etc.

 

[graphix25]

BMW 335xi 2015 Lease Insured with StateFarm
@ Seattle, WA
100k/300k/100k -- Required Min for leasing in my state
$1000 Collision Deductible
Solid Driving Record, not perfect.

6 Months -- $504.60

I would expect the Model 3 will be in a similar price range as what I pay now. It's important to note the Model S is typically a $100k car which is obviously going to have a lot more expensive insurance cost. For a lot of folks buying that car they are coming from more pedestrian models and are in shock in the uplift for a high end luxury vehicle.

Unfortunately you will not be able to price out the Model 3 until it begins shipping as it won't be in anyone database.

 

[cmann]

It's funny how companies are already offering insurance on the model 3, even though it isn't out yet.

2017 Tesla Model 3 Insurance