Up until now I felt like I've had a good rate for our 2017 S75, at $1,284/year. I just got the premium quote for the coming year and its $1,781. Our 2017 Highlander hybrid also increased by 20%, but almost 40% for my MS?! WTF?! We are late 40's, no accidents, have home/life auto all together and have been with Farmers insurance for a long time. Collision went down on the highlander modestly, but increased from $708 to $911 for the MS. So, as my car gets older, it becomes more expensive to insure. Knowing what a costly/timely nightmare it is to fix a tesla this is really no shocker, but sucks none the less...
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New insurance bill increase 39%
- Thread starter Flyguy
- Start date
I'm an actuary who oversees all of the auto insurance rates for a Canadian insurer. In Canada, we rely on the Insurance Bureau of Canada's "Canadian Loss Experience Automobile Rating" (CLEAR) vehicle rate groups to determine the relative risk of one make/model versus another. The CLEAR VRGs are based on industry data that's normalized to remove the effect of the driver (since that's captured separately in each insurer's rating algorithm).
The Model S actually came up as a specific case study this week since we've found that the CLEAR VRGs don't work well for the Model S (at least, not yet). In particular, since it's a new model since 2012 there's limited claims experience to determine the CLEAR VRGs in previous years, so the IBC would have relied on a complement instead. It seems that the complement wasn't sufficient, and now that the claims experience for the Tesla is building, they're finding that the Model S is producing higher claim repair costs than originally anticipated. This isn't really surprising given:
With all of that said, it's not all bad news. The relative rates of vehicle makes/models varies both on the cost of repair and the safety. The Model S is a VERY safe car and this positive characteristic is also reflected in the CLEAR VRGs (meaning that the Model S will have very low rates for any coverage that involves injury claims).
Most likely, your 39% rate increase is due to the adjustment of rates to the Model S as well as adjustments to other rating variables based on a statistical model of historical claims (e.g. where you live, your age group, your use of the vehicle, etc.).
Although it sucks to see your rates increase, I hope this helps provide some context Contrary to popular belief, insurance companies aren't the greedy corporations that people believe they are. It's in every insurer's best interest to charge a rate that matches the expected annualized loss as close as possible -- if we charge too much, we lose clients to competitors -- if we charge too little, we attract new clients at less-than-adequate (i.e. unprofitable) rates.
The Model S actually came up as a specific case study this week since we've found that the CLEAR VRGs don't work well for the Model S (at least, not yet). In particular, since it's a new model since 2012 there's limited claims experience to determine the CLEAR VRGs in previous years, so the IBC would have relied on a complement instead. It seems that the complement wasn't sufficient, and now that the claims experience for the Tesla is building, they're finding that the Model S is producing higher claim repair costs than originally anticipated. This isn't really surprising given:
- Expensive components/technology
- Aluminum body
- Limited availability of parts leading to longer repair times (which means the insurer has to pay for a rental vehicle for a longer time while the vehicle is being repaired)
- The fact that only certain body shops are certified to work on them (since handling batteries require additional tools and safety training)
With all of that said, it's not all bad news. The relative rates of vehicle makes/models varies both on the cost of repair and the safety. The Model S is a VERY safe car and this positive characteristic is also reflected in the CLEAR VRGs (meaning that the Model S will have very low rates for any coverage that involves injury claims).Most likely, your 39% rate increase is due to the adjustment of rates to the Model S as well as adjustments to other rating variables based on a statistical model of historical claims (e.g. where you live, your age group, your use of the vehicle, etc.).
Although it sucks to see your rates increase, I hope this helps provide some context
Contrary to popular belief, insurance companies aren't the greedy corporations that people believe they are. It's in every insurer's best interest to charge a rate that matches the expected annualized loss as close as possible -- if we charge too much, we lose clients to competitors -- if we charge too little, we attract new clients at less-than-adequate (i.e. unprofitable) rates.
Tam
Well-Known Member
Please see the pictures of my bills: It's 6 months billing and it goes down 5% on my renewal effective next month.
Geico just raised my insurance Insurance
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ucmndd
Well-Known Member
I have the same car as you, similar demographic profile, also in CA.
I hold my breath every time my renewal comes through because thus far it’s been reasonable and stayed that way - about $1600/year for BOTH our S75 and 2015 Highlander.
That’s with Costco/Ameriprise. We also had Farmers for everything when we bought the Tesla but their quote at the time was borderline absurd, so we switched everything over.
I hold my breath every time my renewal comes through because thus far it’s been reasonable and stayed that way - about $1600/year for BOTH our S75 and 2015 Highlander.
That’s with Costco/Ameriprise. We also had Farmers for everything when we bought the Tesla but their quote at the time was borderline absurd, so we switched everything over.
TaoJones
Beyond Driven
Just got my renewal notice. Annual premium increase of ~10% from $9xx to $1,0xx. No untoward activity on my part.
Will probably leave it alone. I’ve had Geico, Wawa, Progressive, and Costco/Ameriprise policies previously. I did like the combined single limit (CSL) option that... I think it was Progressive that offered that.
Am now with an independent insurer and don’t remember who underwrites the policy.
Will probably leave it alone. I’ve had Geico, Wawa, Progressive, and Costco/Ameriprise policies previously. I did like the combined single limit (CSL) option that... I think it was Progressive that offered that.
Am now with an independent insurer and don’t remember who underwrites the policy.
Would highly reccomend Ameriprise, IF you have a costco membership. Rates were significantly cheaper than Progressive & Geico.
I used to be a AAA customer for 15 years. Switched over immediately once I got a quote from Costco.
I did also have a claim related to Harvey on my 2012 Mercedes. They were extremely pleasant to deal with, and were on top of everything!
Paying ~$1200 a year for 18 X75D
I used to be a AAA customer for 15 years. Switched over immediately once I got a quote from Costco.
I did also have a claim related to Harvey on my 2012 Mercedes. They were extremely pleasant to deal with, and were on top of everything!
Paying ~$1200 a year for 18 X75D
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Move to Michigan! Then you can enjoy the highest insurance rates in the nation. For my S90D, its about $1,800 for 6 months!!! No tickets, multi-car and house, safe driving, early 40’s.
quickstrike12
Member
dark cloud
Active Member
I'm an actuary who oversees all of the auto insurance rates for a Canadian insurer. In Canada, we rely on the Insurance Bureau of Canada's "Canadian Loss Experience Automobile Rating" (CLEAR) vehicle rate groups to determine the relative risk of one make/model versus another. The CLEAR VRGs are based on industry data that's normalized to remove the effect of the driver (since that's captured separately in each insurer's rating algorithm).
The Model S actually came up as a specific case study this week since we've found that the CLEAR VRGs don't work well for the Model S (at least, not yet). In particular, since it's a new model since 2012 there's limited claims experience to determine the CLEAR VRGs in previous years, so the IBC would have relied on a complement instead. It seems that the complement wasn't sufficient, and now that the claims experience for the Tesla is building, they're finding that the Model S is producing higher claim repair costs than originally anticipated. This isn't really surprising given:
Based on our findings, we're signficantly underpricing the insurance on the Model S relative to the risk, so I foresee that I'll have to increase my own rates on my Model S in the not-so-distant future
- Expensive components/technology
- Aluminum body
- Limited availability of parts leading to longer repair times (which means the insurer has to pay for a rental vehicle for a longer time while the vehicle is being repaired)
- The fact that only certain body shops are certified to work on them (since handling batteries require additional tools and safety training)
Most likely, your 39% rate increase is due to the adjustment of rates to the Model S as well as adjustments to other rating variables based on a statistical model of historical claims (e.g. where you live, your age group, your use of the vehicle, etc.).
Although it sucks to see your rates increase, I hope this helps provide some context
That all makes sense, but some of that must be offset with the fact that the most expensive part, injury claims, are less likely due to the safety of Teslas ?
ucmndd
Well-Known Member
Curious to see the expert response here, but I speculate that most people have an inflated sense of how much this adds to premiums these days. Cars have become remarkably safe across the board.
Tam
Well-Known Member
Safe doesn't mean cheap.
People die less but it's still expensive to cover for injuries and damages.
Bumpers were dirt cheap but now are much softer to save lives which make them much more expensive (there are now embedded sensors too).
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My insurance was just raised significantly but that was primarily due to an accident I was involved in where my Model S was declared a total loss. The rate for my replacement car went up ~65% but to be fair, I am just glad they didn't drop my coverage. I am sure some of the increase was due to the insurance company not knowing how much a Tesla should be insured for as well as 2015 vs. 2019.
Regarding safety, I can tell you that even though the front-end was hit hard and I was spun around, the airbags didn't deploy, there was no notable damage beyond the A-pillars and I walked away with only minor bruising.
Regarding safety, I can tell you that even though the front-end was hit hard and I was spun around, the airbags didn't deploy, there was no notable damage beyond the A-pillars and I walked away with only minor bruising.
I'm an actuary who oversees all of the auto insurance rates for a Canadian insurer. In Canada, we rely on the Insurance Bureau of Canada's "Canadian Loss Experience Automobile Rating" (CLEAR) vehicle rate groups to determine the relative risk of one make/model versus another. The CLEAR VRGs are based on industry data that's normalized to remove the effect of the driver (since that's captured separately in each insurer's rating algorithm).
The Model S actually came up as a specific case study this week since we've found that the CLEAR VRGs don't work well for the Model S (at least, not yet). In particular, since it's a new model since 2012 there's limited claims experience to determine the CLEAR VRGs in previous years, so the IBC would have relied on a complement instead. It seems that the complement wasn't sufficient, and now that the claims experience for the Tesla is building, they're finding that the Model S is producing higher claim repair costs than originally anticipated. This isn't really surprising given:
Based on our findings, we're signficantly underpricing the insurance on the Model S relative to the risk, so I foresee that I'll have to increase my own rates on my Model S in the not-so-distant future
- Expensive components/technology
- Aluminum body
- Limited availability of parts leading to longer repair times (which means the insurer has to pay for a rental vehicle for a longer time while the vehicle is being repaired)
- The fact that only certain body shops are certified to work on them (since handling batteries require additional tools and safety training)
Most likely, your 39% rate increase is due to the adjustment of rates to the Model S as well as adjustments to other rating variables based on a statistical model of historical claims (e.g. where you live, your age group, your use of the vehicle, etc.).
Although it sucks to see your rates increase, I hope this helps provide some context
All this makes sense, thanks. And, as it turns out, the cost of bodily injury liability did in fact go down this year. it went down for both cars, but more for the MS. I guess I'd rather be driving a very safe, but very expensive to fix car than the alternative.
byan1232
Member
I'm paying ~$480 every 6 months with Geico. That includes collision and comprehensive with a $1k deductible. Everything else is pretty standard with NJ. Hope this helps put this into context.
