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So, How's That Tesla Insurance Going?
- Thread starter wolfwill23
- Start date
Bill Foster
I'm going home!
Meh, I have USAA. I saved 40 bucks a month getting my M3 vs my 13 335i coupe I traded in. No need to switch
woodisgood
Optimustic Pessimist
At the shareholder's meeting Elon mentioned they are completing an acquisition and will launch after that. I assume it's to acquire rather than build up everything they need on the backend (software, employees already versed in claims, etc.).
Rojer Lockless
Member
It’s ready. The contract documents are coming via enhanced summon.
I love how people seem to forget or ignore that USAA requires you or a family member to have served in the military to join.
notAnExpert
Member
No one said USAA is for everyone...just like the military. Lol
strykeroz
Member
Please don’t hold your breath waiting. Tesla is partnering with a tiny insurance company. Tesla simply doesn’t have the money to go full bore with an insurance company. Actually, any attempt they make today will hurt the company.
For example GEICO (2nd largest US auto insurer, State Farm is way bigger, but is a mutual company) has over 6.5 Billion in loss reserves. You need a boatload of money to start an insurance company.
Now, once Tesla gets into the US market and figures out how to do insurance, they can look to expand. The Australian market is really, really different from the US market, and it may be the most similar (although Brazil isn’t too far off either).
Tesla doesn’t have anything to bring to the insurance market. No possible advantages. The well established insurance companies have way more data. Tesla could offer a “nanny state” policy based on absolutely every little thing you while driving, but not many will want to sign up for that.
SabrToothSqrl
Active Member
I'll believe it.. when I see it... but I do think rates are unjustifiably high for these cars...
To the degree that Tesla has to contribute capital to the program - it would pull capital away from other operations. It IS possible they may find people willing to supply insurance capital based on the fact that Tesla's has knowledge of the loss experience of its vehicles that is unmatched by the other brands. Markel would be managing the program. While Markel does do reinsurance I'd be surprised if they put significant capital into the business.
The Loss and Loss Adjustment Expense is a function of the premiums you write. Surplus (i.e. essentially Assets minus Liabilities) and the size of it is what determines your ability to write business. Small writers generally use significant reinsurance which allows smaller surplus.
The question is if you believe that Tesla offers "actuarially credible" loss experience data. If it does you technically should be able to better price the policies. Personally, I don't think Tesla's vehicle telemetry offers enough of an edge compared to the other proprietary data that the national carriers have across the US.
All the positives for USAA. I've had them for well over a decade but their rates were quite a bit higher than Progressive. I might change my tune after my initial 6 months is up with Progressive, but I'm getting 250/500K for about $400 less / 6 months than USAA with 100/300K. I was actually pretty shocked.
You must convert to Elon alternate universe standard time.
FloridaGary
Member
For non-military, Amica is consistently #1 or #2 rated nationally along with USAA.
I'd caution everyone here if saving a few hundred dollars a year makes up for purchasing insurance from a carrier who makes paying claims as difficult as possible and fights with you over every penny.
You'll notice that two of the recommended carriers here have the word "mutual" in their name. Mind you not all mutuals are perfect and not all for profit insurers are evil. I happen to have my insurance with a for profit carrier and wouldn't purchase P&C insurance from one major US mutual unless it was $0.50 on the dollar. And even at that point I'd think twice.
You'll notice that two of the recommended carriers here have the word "mutual" in their name. Mind you not all mutuals are perfect and not all for profit insurers are evil. I happen to have my insurance with a for profit carrier and wouldn't purchase P&C insurance from one major US mutual unless it was $0.50 on the dollar. And even at that point I'd think twice.
The problem is when it starts being more like “thousands per year”, which is what I’m seeing in general between something like GEICO (whose crappiness stories abound) and Liberty Mutual for example. If I’m gonna give someone an extra $200/mo, I better be seeing a hell of a lot of benefits for doing so.
