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So, How's That Tesla Insurance Going?
- Thread starter wolfwill23
- Start date
Dan203
Active Member
Yikes. I hope mine doesn't go up that much when I get the Tesla. My wife and I currently pay about $750/six months for a 2016 Audi TT and a 2016 BMW 340i. If just my car shot up to $900 my wife isn't going to be happy.
AlanSubie4Life
Efficiency Obsessed Member
What I'm not doing is saving much money vs. gasoline! It costs more than 3x to insure the P3D vs. the STi, and the STi had much lower comprehensive deductibles. $1200 extra a year wipes out all the savings. P3D is a better ride though. Obviously there is a lot more to insure with the Tesla than for the $13k 2005 STi, but still...
I previously thought Mercury didn't want to insure Teslas because their $1k comprehensive is the minimum they will write the policy for. But it appears that Tesla also does not want to insure Teslas.
I need to shop around I guess.
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AlanSubie4Life
Efficiency Obsessed Member
Get a quote from your insurance. Once you get a VIN assigned, they should be able to quote you precisely before you purchase the vehicle.
I'm not referring to the car but STRICTLY the insurance. Tesla is the same price so that is not saving any money and not very encouraging. Since we probably have the 2ed largest Tesla base in GA I hope we get it next or very soon though.
Dan203
Active Member
Not going to back out now either way. If it's a bug jump I'll just have to take the heat for a while. I assumed it would be roughly the same as the BMW since the BMW was actually slightly more expensive, but after seeing the cost of some of the repairs posted on this forum I could see why they might charge more.
willow_hiller
Well-Known Member
Seems to be competitive insurance for some people Steve Jobs Ghost on Twitter but he admits he had a few speeding tickets.
woodisgood
Optimustic Pessimist
I'm going to check this out, we've been waiting to see digits since MAY. But, from my experience it works usually one of TWO ways.
either, it's REALLY cheap and a loss leader to gain some customers and share steal, OR it's TOO high relative to peers or existing market participants because they are doing a bit of CYA so they don't get too far behind the curve for drivers and costs to repair. Since this is certainly a relationship management, I would imagine is should fall in the middle category, since the actual UNDERWRITER should either be in the market/s and has the actuarial tables to back up quotes.
either, it's REALLY cheap and a loss leader to gain some customers and share steal, OR it's TOO high relative to peers or existing market participants because they are doing a bit of CYA so they don't get too far behind the curve for drivers and costs to repair. Since this is certainly a relationship management, I would imagine is should fall in the middle category, since the actual UNDERWRITER should either be in the market/s and has the actuarial tables to back up quotes.
woodisgood
Optimustic Pessimist
I really expected them to offer a competitive quote and product. It's much higher than I thought. Whoever was in charge of this *sugar* the bed IMHO.
Why do you think they sugar’d the bed? Only people who were anticipating premiums to be a lot less than industry were Tesla Bulls on this forum.
There were people, including myself, if you look back at posts claiming Tesla insurance won’t be better than existing insurance options.
woodisgood
Optimustic Pessimist
You're brilliant.
Why bother offering the insurance then? What's the point of the whole exercise? If your premiums aren't providing relief for Tesla customers that are getting hit with sky high premiums, and there aren't other perks to your product (aside from a really really fast quote), I don't see why they would even bother. At the very least, I thought they might have a new (disruptive, even?) take on auto insurance. Perhaps that was the original thinking, but the realities of the industry thwarted their plans.
Which, by the way is BS. Their rate formula has to be filed with the state and approved. They can't do on-the-fly "algorithm updates." Insurance is a highly regulated business. And we all know how well Musk does with regulators.
What blows my mind is Musk didn’t even trial this with internal employees of Tesla and Space X.
When 0/50,000 people sign up - it’s tells that it’s not ready.
The only way the insurance comes even close to being feasible is if I had only the Model X to insure.
This means no other cars and no home - I’m sleeping inside it.
Can’t believe not a single person in a meeting said something.
When 0/50,000 people sign up - it’s tells that it’s not ready.
The only way the insurance comes even close to being feasible is if I had only the Model X to insure.
This means no other cars and no home - I’m sleeping inside it.
Can’t believe not a single person in a meeting said something.
woodisgood
Optimustic Pessimist
It's early and perhaps we don't know the whole story, but this really doesn't seem to make any sense. They hired an industry exec to head it up - Alex something. Did Elon just give him full autonomy to put up another insurance shop (and not a very good one at that)? Was there not a vision here? Or perhaps the vision centers wholly around FSD/robotaxis and for now it's of little value to [most] owners.
A talking gecko knows more about insurance than Elon Musk and Alex something.
Buffet I’m sure is laughing his ass off.
Not that the premise is bad. I think there is a fantastic market for financial products to be sold to Tesla owners.
As a whole, we should be a cheap demographic to insure and extend credit to.
Maybe Tesla can replace Alex something with Flo, the Progressive insurance lady.
AlanSubie4Life
Efficiency Obsessed Member
AzRael's crazy theory: When they hit Level 3 or Level 4 "eyes and hands-off" autonomy the responsibility for accidents potentially changes from the driver to the car. Also, Tesla has plans for the Tesla Network and robotaxis at some point. Traditional insurers will most likely balk at both of these things initially, so Tesla needs to have their own product in place to offer their customers until the rest of the industry can absorb the sea change that real FSD will bring.
This might just be a way to get the product going and tested so it is in place once the master plan comes to fruition. So, you can sign up to be a Beta Tester for the new Tesla insurance and claims service if you so choose I suppose.
woodisgood
Optimustic Pessimist
You’re 100% spot on I reckon. Just thought the product would do more for owners in the meantime, but yes, its very existence is disruptive when it will be needed.
