Model S Insurance in Canada

[Jaff]

It is entirely possible that in 2012, TD MM's underwriting rules governing Doug's Model S had changed from those governing his 2010 Roadster....it could be as simple as TD MM grandfathering the Roadster exempting it from the new rule...This happened with Chieftain Insurance a few years ago.

Although you are geographically close to Mr. Elbe, I doubt you are in the same territory...it might be that RBC have different minimum deductibles in different territories (although I doubt it)...it is more likely that RBC changed their underwriting rules between the time you purchased your Model S (a few years ago), and Mr. Elbe getting hit Model S (a few months ago).

Grandfathering older rules for existing clients, but subjecting new policyholders to current rules happens frequently in Ontario auto insurance.

Fair enough. But wouldn't that been high enough to trigger the high deductible limits that @iKhalid and others presumed were driven by the car's value? Didn't seem to affect @Doug_G's Roadster, but did with his Model S.

Also curious to know why RBC required a $7,200 deductible of @mrElbe but not of me??? We're both GTA-ish. I realize there are likely numerous little differences that affect our policies, but it sure seems like a wide gap.

 

[mknox]

Apparently the trigger point for a higher deductible is $ 150,000. Including HST my P85D was over that.

Well that could be it then. My 2+ year old S85 was a lot under $150 k

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...it is more likely that RBC changed their underwriting rules between the time you purchased your Model S (a few years ago), and Mr. Elbe getting hit Model S (a few months ago).

Grandfathering older rules for existing clients, but subjecting new policyholders to current rules happens frequently in Ontario auto insurance.

Thanks Jaff. Very plausible explanation.

 

[SmartElectric]

Just an interesting note.

Just phoned my insurance company to get a quote on the CPO S85 I am purchasing.
The rate was less than I am paying on my Smart Electric Drive (which I commute in).

What a nice surprise!

I believe this is because (a) the Tesla is safe (b) this will be our second car used for family trips and not my commute (c) we have zero accidents or claims for >10 years (d) we insure everything with them (house, cars, ...) .

 

[beeeerock]

I believe this is because (a) the Tesla is safe

Watching the feed from the shareholder's meeting and the safety discussion, it occurred to me that given a bit of time to show the crash tests are accurate, one might expect the rates to drop as they relate to injury settlements. Yes, the car's expensive to fix or replace, but I wonder how much of insurance costs are derived from injury claims? If that part of the claim statistics dropped, one would assume the rate would too...

 

[green1]

Just wait until the insurance companies learn that these are among the most expensive vehicles to repair, and that tesla blocks repair of salvage vehicles killing any residual value in a write off. Rates will go up.

 

[Doug_G]

Just wait until the insurance companies learn that these are among the most expensive vehicles to repair, and that tesla blocks repair of salvage vehicles killing any residual value in a write off. Rates will go up.

There is some controversy over Roadster salvage repairs right now, but there is a process for Model S. The car is inspected and as long as it is safe they will work on it. There is a cost associated with the inspection.

 

[green1]

There is some controversy over Roadster salvage repairs right now, but there is a process for Model S. The car is inspected and as long as it is safe they will work on it. There is a cost associated with the inspection.

As long as Tesla remains hostile to anyone other than Tesla working on Tesla vehicles, and as long as they refuse to sell parts to others, and as long as their hourly rates remain among the highest in the industry, Insurance will remain high due to the incredibly high cost of repair.

 

[mknox]

As long as Tesla remains hostile to anyone other than Tesla working on Tesla vehicles, and as long as they refuse to sell parts to others, and as long as their hourly rates remain among the highest in the industry, Insurance will remain high due to the incredibly high cost of repair.

Fortunately for me, my insurance premiums are less than they were on my last few cars (last being a Cadillac CTS) so I'm reasonably happy right now. My rate even dropped a bit in year 2 over year 1 of ownership. I surely hope what you say doesn't lead to my premiums going up over time.

 

[swrving]

A good part of our premiums are for bodily injury and care-giving related expenses. So the safety record of the car has a lot to do with the rates. My insurance went from about $1200/yr (full coverage) on my 2010 Mazdaspeed 3, to $900/yr (full coverage) on my Model S.

 

[Doug_G]

Right, it's far cheaper to write off a car than to take care of someone with life-changing injuries for the rest of their days.

 

[green1]

Another data point...

Calgary, full coverage, less than $900/yr with Aviva (through PC Insurance) Still significantly more than our other car, but relatively reasonable.
Girl I talked to had to google what a Tesla was, and then had to refer it to the underwriters, but 2 days later they figured it all out.
I also got a quote from co-operators for a hair over $1000

 

[llavalle]

The only thing I don't like about this is my insurance coverage. It's pretty clear in their contract that they will buy me a similarly equipped car but won't pay more that what I've paid for mine.

Btw, I've been tracking the prices go up since I got my car and while the CAD price went up (from 114K to 133K), factoring in the historical exchange rates make it so the car is actually costing less in USD than when I bought it (101k USD vs 99K USD)

I'm not too mad. I ordered when the exchange rate was very close to parity and when I took delivery, 6 months later, it was a bargain! I'm glad they honored the prices.

 

[Peter_M]

The only thing I don't like about this is my insurance coverage. It's pretty clear in their contract that they will buy me a similarly equipped car but won't pay more that what I've paid for mine.

Interesting. The 5-Year Replacement Cost part of my policy says "No depreciation will apply, and if the vehicle costs more now than when you bought it, we will even absorb the extra cost."

 

[iKhalid]

Interesting. The 5-Year Replacement Cost part of my policy says "No depreciation will apply, and if the vehicle costs more now than when you bought it, we will even absorb the extra cost."

Is this from CIBC/Desjardin insurance? (they use Certas I think)

 

[agloutney]

I'm in the same boat as llavalle. It would cost me an extra 10k to replace my year old car today. My insurance (TDMM) only insures the amount I paid. Maybe it's time to shop around.

 

[wayner]

The only thing I don't like about this is my insurance coverage. It's pretty clear in their contract that they will buy me a similarly equipped car but won't pay more that what I've paid for mine.

Btw, I've been tracking the prices go up since I got my car and while the CAD price went up (from 114K to 133K), factoring in the historical exchange rates make it so the car is actually costing less in USD than when I bought it (101k USD vs 99K USD)

I'm not too mad. I ordered when the exchange rate was very close to parity and when I took delivery, 6 months later, it was a bargain! I'm glad they honored the prices.

I doubt Tesla owners are the only ones that have this issue given the recent weakness in the CAD.

 

[hingisfan]

I'm in the same boat as llavalle. It would cost me an extra 10k to replace my year old car today. My insurance (TDMM) only insures the amount I paid. Maybe it's time to shop around.

It would cost me a lot more than that. I bought my 60 for 65k, and now a barebones 70 rwd is 90k. I better check the fine print on my replacement policy!

 

[Peter_M]

Is this from CIBC/Desjardin insurance? (they use Certas I think)

No, TD Meloche Monnex; insurer is Security National.

 

[Jaff]

This is generally the case (with most auto insurers in Ontario) llavelle... I don't know about P.Q.

The endorsement is not a "replacement cost" endorsement (like property insurance), but a "waiver of depreciation" endorsement...the company will settle the claim based on what you paid for the vehicle, not what the actual replacement cost of the vehicle is (at the date of the loss).

The only thing I don't like about this is my insurance coverage. It's pretty clear in their contract that they will buy me a similarly equipped car but won't pay more that what I've paid for mine.

Btw, I've been tracking the prices go up since I got my car and while the CAD price went up (from 114K to 133K), factoring in the historical exchange rates make it so the car is actually costing less in USD than when I bought it (101k USD vs 99K USD)

I'm not too mad. I ordered when the exchange rate was very close to parity and when I took delivery, 6 months later, it was a bargain! I'm glad they honored the prices.

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Interesting...this is definitely the exception to the rule...

Interesting. The 5-Year Replacement Cost part of my policy says "No depreciation will apply, and if the vehicle costs more now than when you bought it, we will even absorb the extra cost."

 

[hingisfan]

Replacement Cost Solution FAQ

If I have it right....
- must have on policy since buying new
- limit 100k payout
- I would likely get screwed over as they would say the "60" model is no longer made, and would pay out my purchase price instead of buying me a 70.