Owning a Tesla is awesome, until you get into an accident...

[lolachampcar]

apacheguy
I was very careful to say that I use this number based on my purchase patterns (trade in on new when my car is typically 3yrs/40K miles). This is only a snapshot in time. Trade in a year earlier and the depreciation per mile is more, trade a year later and it will be less. I just need a number that sets my own expectations so that I properly discount the accident damaged car for the milage on it when I replace it.

I do not expect my number to work for everyone.

 

[Jaff]

Wow...the overwhelming majority of insurers in Canada offer it...when you do replace your vehicle, if you are able, you should look to switch to a company that offers said coverage...

 

[ecarfan]

In the US there are "agreed value" policies and "stated value" policies. They are very different, they cost more, and they are both different from what almost everyone typically has. They are often used by vintage/classic car owners and may have annual mileage restrictions. So they don't really apply to this discussion.

I too am concerned about Tesla repair costs. But I think if your insurers is offering you $70K for the car that sounds reasonable based on the current market.

 

[Jaff]

They are offered by virtually all major insurance companies in Canada...on any new car, not just on antique or classic cars...you guys have it tough I guess...

 

[callmesam]

I am not currently a Tesla Owner. I am very interested, but the INSANE repair costs of these vehicles may be the reason I do not become an owner (along with the resulting increasing Tesla insurance rates because of these costs). Not long ago I had a BMW that needed a fender and door, not too much different in damage than this (but not a wheel & tire). Repair costs were under $5K done at a BMW authorized repair center (in NJ). Tesla either needs to smack these "authorized" body shops around, or really ramp up the certification program to get some cost leveling competition going.

Let me correct one slight misunderstanding. Insurance rates are a function of INJURIES not property damage, in general. Which is why current Tesla Model S premiums are much lower than similar performance vehicles. If you don't believe, go price out insurance for a Mercedes S550 or Porsche Panamera. The Model S protects occupants very well, resulting in low injury rates and low premiums.

 

[JST]

Why are you losing money in repair costs?

If the insurance declared it a loss, they should pay you the $70k less your deductible. Use that to pay out a loan and you are only "out" depreciation -- but you were out that anyway. You order a new Tesla and move on.

If they didn't declare it a loss, they pay to repair it. You pay your deductible. Car gets fixed and you still have it. BUT -- the car was damaged and repaired -- so will take a further depreciation hit.

Sounds like you are coming out ahead by them totaling it...

If the car were cheaper to fix, it wouldn't be so readily totaled. The high repair costs are thus forcing him to eat the depreciation more quickly than anticipated. That's a real loss in value.

Yes, he is "made whole" in the sense that he is getting the value of the car today, but the depreciation curve on cars means that his cost per mile is going to be higher than if he'd been able to keep the car for XX years.

Edit--I also think that $70 is probably a pretty fair offer at this point, given the glut of used cars on the market in the wake of the D intro. The good news is that this means you might be able to find a used car for not significantly more than your payout.

If I were you, I'd look around for a '13 P85. It's a nice upgrade, but won't require the big outlay a new one would. Plus, they aren't making any more of those.

 

[andrewket]

Allstate offers replacement value in the US. It's part of their "new car program". Comes with some other perks, like accident forgiveness (which I've always thought was silly. You're basically pre-paying for an accident that you may not have.)

 

[drsaab]

They will pay off your loan. You can get another same car used or better for 70k in the current market, and get a new loan. Better than driving a tesla around with an accident and a bad carfax. They are doing you a favor by totalling it.

 

[yobigd20]

Let me correct one slight misunderstanding. Insurance rates are a function of INJURIES not property damage, in general. Which is why current Tesla Model S premiums are much lower than similar performance vehicles. If you don't believe, go price out insurance for a Mercedes S550 or Porsche Panamera. The Model S protects occupants very well, resulting in low injury rates and low premiums.

Keep telling yourself that until you get your next bill. Many of us (I won't say ALL of us), including me, have just got our next 6mo bill and it's gone up about ~$200/yr. the increase was mostly in collision and liability. I have a perfect driving record, so nothing to do with me personally. many of us thus asked our insurance companies "why the raise?!?!" ALL of us got the same response from different insurance companies: the Tesla Model S has the highest accident rates and the highest cost of repairs and the highest rate of total loss valuations. So, they have to raise rates to make money or else they'll need to stop insuring Tesla vehicles. It has nothing to do with injuries. It is 100% due to the price gouging at the certified repair shops and Tesla's refusal to sell parts to independent shops. THIS HAS GOT TO STOP AND MUST BE ESCALATED UP TO JEROME/ELON.

 

[Brightonuk]

Sorry to hear mate don't care what these guys say it was your baby and now the insurance company is shafting you, it don't matter the going rate the thought of owing $70K to the bank and now after 1 year you just spent $20k on a rental

I just had a scrape and the Tesla appointed body shop told me to contact this lawyer they always use and sue for "depreciation" and "loss of use" whatever that means.

I don't know if that is even an option for you I am sure there are a couple of briefs on the forum can chime in.

Good luck

 

[EarlyAdopter]

Keep telling yourself that until you get your next bill. Many of us (I won't say ALL of us), including me, have just got our next 6mo bill and it's gone up about ~$200/yr. the increase was mostly in collision and liability. I have a perfect driving record, so nothing to do with me personally. many of us thus asked our insurance companies "why the raise?!?!"

And yet many of us, myself included, haven't seen any increases in our premiums, in my case in nearly 2 years. In fact, mine has gone down slightly. How do you explain that?

 

[SBR]

And yet many of us, myself included, haven't seen any increases in our premiums, in my case in nearly 2 years. In fact, mine has gone down slightly. How do you explain that?

What insurance company? I just got a quote and it's costing me more to insure my p85d than our flying spur speed. Now THAT is insane. I have geico.

 

[yobigd20]

And yet many of us, myself included, haven't seen any increases in our premiums, in my case in nearly 2 years. In fact, mine has gone down slightly. How do you explain that?

Initially mine was much cheaper too but it's gone up on every renewal with the most significant increase (much higher than the previous two smaller increases) just a few weeks ago. Initially they had no data to compare it to. But now they are well seasoned into knowing MS price premiums for repairs and they just shot their rates up for Tesla's significantly.

 

[EarlyAdopter]

What insurance company? I just got a quote and it's costing me more to insure my p85d than our flying spur speed. Now THAT is insane. I have geico.

Progressive.

 

[100thMonkey]

hate to admit it, if my insurance company would total out my car and give me roughly 75% of it's value after a year and 21,000, i'd consider that a pretty sweet deal! every one of us with a vehicle before the D has lost way more than that in basic depreciation, my P85+ now has the proud distinction of being a discontinued vehicle. Don't get me wrong, I love my + but I'd be grateful I didn't get hurt in the accident, I'd take the money and leverage the value by ordering a D, then I'd call all my friends and throw a party!

 

[SBR]

Progressive.

I'm going to give progressive a call tomorrow for all our cars... Thanks for the tip

 

[callmesam]

And yet many of us, myself included, haven't seen any increases in our premiums, in my case in nearly 2 years. In fact, mine has gone down slightly. How do you explain that?

Over 17 months and my premiums are now less than my 10 year old BMW. No increases. Yet.

But I'm confident they will be rising Tesla "soon". :biggrin:

 

[RobStark]

Tesla is asking their certified shops to buy all new equipment to work on aluminum including expensive frame machines.

Frame machines made to work on Audi A8 and Jaguar XJ are not good enough for Tesla.

These repair shops don't see many Teslas so they charge high rates for repair. But if everything gets totaled then these repair shops are not making any money on Tesla repairs.

Further, if Tesla starts declaring these vehicles inoperable then individual buyers in the salvage market will avoid these vehicles and only junk yards will buy these totaled Teslas for dismantling. This greatly depresses prices for totaled Teslas and monies recovered by insurance companies. Further increasing the cost to insurance companies for Tesla vehicles relative to BMW MB and AUDI. Further increasing insurance rates to Tesla owners.

 

[JST]

Tesla is asking their certified shops to buy all new equipment to work on aluminum including expensive frame machines.

Frame machines made to work on Audi A8 and Jaguar XJ are not good enough for Tesla.

These repair shops don't see many Teslas so they charge high rates for repair. But if everything gets totaled then these repair shops are not making any money on Tesla repairs.

Further, if Tesla starts declaring these vehicles inoperable then individual buyers in the salvage market will avoid these vehicles and only junk yards will buy these totaled Teslas for dismantling. This greatly depresses prices for totaled Teslas and monies recovered by insurance companies. Further increasing the cost to insurance companies for Tesla vehicles relative to BMW MB and AUDI. Further increasing insurance rates to Tesla owners.

Why aren't the existing frame machines good enough?

 

[dougkkk]

Sorry about what happened to you man. And your car too. Of course, maybe next time you will be more careful. Hope you get well soon. Same goes for your ride.