Tesla Insurance Experience Being the Not At Fault Driver

[eJonny]

I wanted to share an experience I am having with Tesla Insurance. I am an unashamed fan of Tesla and have been willing to deal with challenges to support the brand, technology, and the changes Tesla is driving in the industry to foster more competition and better products.

So, being an early adopter (but not first wave), I switched from USAA to Tesla Insurance in July of this year.

Earlier this month (October) I was sideswiped by a commercial truck in the parking lot of a local mall. Fortunately, no one was hurt and the damage wasn't terribly extensive. But my driver's side sideview mirror was a total loss.

I called to file my claim and Tesla Insurance told me that they farm out to their contract adjusters. In this case, I was referred to someone at Crawford who was supposed to call me within 48 hours, but didn't until I called Tesla Insurance a second time (which is when I got the information about the outsource adjusters).

The process took a while to get started. I opened the claim and got a claim number very quickly, but it took 3 business days before I heard from an adjuster (one day after I called Tesla Insurance back inquiring about the adjuster). The process didn't include any online tools to track the claims process, post documents, ask questions or check status.

After working with the adjuster and finding out that the repair would be less than the cost of the deductible, the adjuster said there was nothing she could do and the claim would have to go to Tesla's subrogation department so I could be reimbursed.

The repair cost $890. And while that is high, it is less than my deductible. I always maintain a high deductible to reduce my premiums.

Tesla mobile service was fantastic, prompt, and performed excellent service - I would hope so at that price.

My premiums are slightly lower than the rates I had at USAA. I provided excellent TeslaCam footage of the accident and the type of technology that Tesla provides should reduce fraud, improve insurance claim cycle times, and help cut cost out of insurance.

But Tesla Insurance is still forming. I'm willing to cut them a little slack (no online tools for claims tracking, a rough handoff and back from the adjuster, and not having a process for subrogation). But I hope they do pick up their game and improve their processes quickly. Tesla Insurance is going to be very important when full self-driving is "out of beta" sometime in the next 5-10 years and Tesla will need a mature insurance organization to support it.

I will continue to provide updates on the experience for the community.

 

[Akikiki]

Maybe its not the same in CA, but USAA also farms out (and has for the 40+ years that I have been with them) their adjuster service to Crawford - here in Hawaii.

 

[eJonny]

Maybe its not the same in CA, but USAA also farms out (and has for the 40+ years that I have been with them) their adjuster service to Crawford - here in Hawaii.

Hi Akikiki!
Yes, USAA does farm out some of their adjuster work. And I'm not saying there is anything wrong with Crawford. My adjuster is on your island and she was very kind.

It seems like the problem is that the role of subrogation isn't something that would be normally outsourced and I don't think that Tesla Insurance has a process for it. Tesla Insurance has already suggested, once, that I go after the other party myself.

 

[r1200gs4ok]

I wanted to share an experience I am having with Tesla Insurance. I am an unashamed fan of Tesla and have been willing to deal with challenges to support the brand, technology, and the changes Tesla is driving in the industry to foster more competition and better products.

So, being an early adopter (but not first wave), I switched from USAA to Tesla Insurance in July of this year.

Earlier this month (October) I was sideswiped by a commercial truck in the parking lot of a local mall. Fortunately, no one was hurt and the damage wasn't terribly extensive. But my driver's side sideview mirror was a total loss.

I called to file my claim and Tesla Insurance told me that they farm out to their contract adjusters. In this case, I was referred to someone at Crawford who was supposed to call me within 48 hours, but didn't until I called Tesla Insurance a second time (which is when I got the information about the outsource adjusters).

The process took a while to get started. I opened the claim and got a claim number very quickly, but it took 3 business days before I heard from an adjuster (one day after I called Tesla Insurance back inquiring about the adjuster). The process didn't include any online tools to track the claims process, post documents, ask questions or check status.

After working with the adjuster and finding out that the repair would be less than the cost of the deductible, the adjuster said there was nothing she could do and the claim would have to go to Tesla's subrogation department so I could be reimbursed.

The repair cost $890. And while that is high, it is less than my deductible. I always maintain a high deductible to reduce my premiums.

Tesla mobile service was fantastic, prompt, and performed excellent service - I would hope so at that price.

My premiums are slightly lower than the rates I had at USAA. I provided excellent TeslaCam footage of the accident and the type of technology that Tesla provides should reduce fraud, improve insurance claim cycle times, and help cut cost out of insurance.

But Tesla Insurance is still forming. I'm willing to cut them a little slack (no online tools for claims tracking, a rough handoff and back from the adjuster, and not having a process for subrogation). But I hope they do pick up their game and improve their processes quickly. Tesla Insurance is going to be very important when full self-driving is "out of beta" sometime in the next 5-10 years and Tesla will need a mature insurance organization to support it.

I will continue to provide updates on the experience for the community.

I have been with USAA for over 45yrs....I have a 2019 M3 and a 2020 Model S......I have 300k/500/ and 1,000 deductible....I pay approximately $825 every 6mo.....I live in SoCal....I have never had any issues over the years with USAA....They are very responsive and never let things go longer than 24 hrs...

How much are you paying with Tesla.....they were almost $450 each 6 months higher than USAA

 

[Tiger]

This defies logic, why does the deducable come into play when you're not at fault, shouldn't the other party's insurance foot the full bill?

 

[r1200gs4ok]

This defies logic, why does the deducable come into play when you're not at fault, shouldn't the other party's insurance foot the full bill?

1...you insurance company should got after the other guy.....
2...deductible does not come into play if you are not at fault, I think....unless you are in a "no fault state"
3...some insurance companies use the deductible rhetoric when the insured just dont know any better...

JMHO

 

[Tiger]

Sounds like I wouldn't touch Tesla Insurance with a ten foot pole until Tesla has got their service act together.

 

[1windy]

Couple of things to note....
1. Did you file a police report?
2. If so, then contact the the at fault party.
3. I had a Fedex truck do the same to me a few years ago, had witnesses, seems equal to the footage. I waited for the police to file a report, called Fedex and reported it. I don't remember the details but once they got the documents, I was reimbursed completely. I never even reported to my insurance company since it didn't "involve" me. I was parked and not in the vehicle. I did this not to potentially raise my rates. I have heard in the past that anything over a $1000 payout increases your rates, regardless of fault. Not 100% sure of this, but didn't want to find out.
This may be slightly off topic but, possibly a way to help you get reimbursed.

Good luck

 

[Maxpilot]

Couple of things to note....
1. Did you file a police report?
2. If so, then contact the the at fault party.
3. I had a Fedex truck do the same to me a few years ago, had witnesses, seems equal to the footage. I waited for the police to file a report, called Fedex and reported it. I don't remember the details but once they got the documents, I was reimbursed completely. I never even reported to my insurance company since it didn't "involve" me. I was parked and not in the vehicle. I did this not to potentially raise my rates. I have heard in the past that anything over a $1000 payout increases your rates, regardless of fault. Not 100% sure of this, but didn't want to find out.
This may be slightly off topic but, possibly a way to help you get reimbursed.

Good luck

This... plus don't forget to ask the other parties insurance for Diminished Value payout. Having body work on record that a future buyer can find using CarFax or similar will lower the value of the car.

 

[Catbiscuits]

I have stuck with USAA, but I had a total loss this summer and your experience sounds a lot easier than mine. My car was at my mechanics and even though he was getting paid for every day that sat there, the car was taking up space he didn’t have and it took them three weeks to get it out of there, it was ludicrous. Like Tesla, they farm out everything now and I had to call multiple times to get any progress whatsoever. Over and over they would promise something and I’d get a call from my mechanic saying no adjuster had been out or the car was still there or whatever. In the end they raised my rates anyway even though it wasn’t my fault (massive flooding on a divided highway and there was nowhere to go... hyrdolocking).

 

[eJonny]

This defies logic, why does the deducable come into play when you're not at fault, shouldn't the other party's insurance foot the full bill?

Yes. The other party's insurance should foot the full bill. It's just a matter of who is going to ask them to do so. Right now Tesla Insurance is saying that I have to do this. USAA (and most other insurance companies) do this for their members/customers. I have escalated this at Tesla Insurance and let everyone know what I hear.

 

[eJonny]

Couple of things to note....
1. Did you file a police report?
2. If so, then contact the the at fault party.
3. I had a Fedex truck do the same to me a few years ago, had witnesses, seems equal to the footage. I waited for the police to file a report, called Fedex and reported it. I don't remember the details but once they got the documents, I was reimbursed completely. I never even reported to my insurance company since it didn't "involve" me. I was parked and not in the vehicle. I did this not to potentially raise my rates. I have heard in the past that anything over a $1000 payout increases your rates, regardless of fault. Not 100% sure of this, but didn't want to find out.
This may be slightly off topic but, possibly a way to help you get reimbursed.

Good luck

Thanks. Good points. I didn't involve the police after 1) confirmed the other driver had a valid license, 2) confirmed the other driver had current insurance, 3) confirmed there were no injuries, and 4) suspected the damages to be below $500 (I was wrong about this one).

I don't think my insurance has ever gone up for a not at fault accident (this is my 3rd in 25 years of driving).

 

[eJonny]

I have stuck with USAA, but I had a total loss this summer and your experience sounds a lot easier than mine. My car was at my mechanics and even though he was getting paid for every day that sat there, the car was taking up space he didn’t have and it took them three weeks to get it out of there, it was ludicrous. Like Tesla, they farm out everything now and I had to call multiple times to get any progress whatsoever. Over and over they would promise something and I’d get a call from my mechanic saying no adjuster had been out or the car was still there or whatever. In the end they raised my rates anyway even though it wasn’t my fault (massive flooding on a divided highway and there was nowhere to go... hyrdolocking).

Ouch. Sorry about your experience. I know that state laws have a lot to do with car insurance. I'm in California (the only place Tesla Insurance is currently offered). Did your incident happen in NJ?

 

[Big Dog]

Yes. The other party's insurance should foot the full bill. It's just a matter of who is going to ask them to do so. Right now Tesla Insurance is saying that I have to do this. USAA (and most other insurance companies) do this for their members/customers. I have escalated this at Tesla Insurance and let everyone know what I hear.

Exactly. Your insurance company should take the lead in getting the repair done and then go after the other guy's insurance for reimbursement. At least in CA. No fault states can be different.

If Tesla is not taking the lead, you should file a complaint with the state insurance commission.

 

[eJonny]

I have a 2019 M3 and a 2020 Model S......I have 300k/500/ and 1,000 deductible....I pay approximately $825 every 6mo.....I live in SoCal....

How much are you paying with Tesla.....they were almost $450 each 6 months higher than USAA

I have a 2016 P100D. I have a 100k/100k/50k with equal coverage for uninsured motorist with a 1k deductible and I'm paying $900 every six months (although this is billed monthly -- Tesla Insurance does not offer discounts for full premium payment, which is what I did at USAA). I was paying $1100 with USAA. I go high end on the coverage based on some past experiences and the fact that my car (at the time I bought it, was more expensive than my first home).

I didn't switch because I expected lower premiums (I expected the same or slight better which is what I got). I switched because I do expect Tesla Insurance to be better in the long run. I didn't expect better service either. But I do expect that they pay expenses for an at fault accident and get reimbursed from the other parties insurance.

We'll see. If I have to go after the other party's insurance personally, I will probably have to wish Tesla Insurance luck until they have their act together. But I haven't given up hope on them yet.

 

[eJonny]

[QUOTE="
If Tesla is not taking the lead, you should file a complaint with the state insurance commission.[/QUOTE]

Great suggestion. Thank you VERY much. Consider that filed in the back pocket if I need it.

 

[EVortex]

In CA insurers have the right to pursue subrogation, but are not required to do so. If they do pursue subrogation, they must include the deductible. I would not expect the insurer to subrogate since your claim is less than the deductible. Best bet is to pursue your claim with the other party’s insurer.

 

[r1200gs4ok]

I have a 2016 P100D. I have a 100k/100k/50k with equal coverage for uninsured motorist with a 1k deductible and I'm paying $900 every six months (although this is billed monthly -- Tesla Insurance does not offer discounts for full premium payment, which is what I did at USAA). I was paying $1100 with USAA. I go high end on the coverage based on some past experiences and the fact that my car (at the time I bought it, was more expensive than my first home).

I didn't switch because I expected lower premiums (I expected the same or slight better which is what I got). I switched because I do expect Tesla Insurance to be better in the long run. I didn't expect better service either. But I do expect that they pay expenses for an at fault accident and get reimbursed from the other parties insurance.

We'll see. If I have to go after the other party's insurance personally, I will probably have to wish Tesla Insurance luck until they have their act together. But I haven't given up hope on them yet.

well did you lose the subscribers saving account and if you are a senior, the senior additional dividend paid in February...

 

[trm2]

Yes. The other party's insurance should foot the full bill. It's just a matter of who is going to ask them to do so. Right now Tesla Insurance is saying that I have to do this. USAA (and most other insurance companies) do this for their members/customers. I have escalated this at Tesla Insurance and let everyone know what I hear.

You are in a strange situation. You don’t have a claim with your own insurance because the damage is less than your deductible. Since you don’t have a claim with them they have nothing to subrogate. Basically, your coverage with your own policy starts at your deductible.

The other party should absolutely make you whole.

 

[1windy]

I would immediately do the following.
-get a police report
- contact the company,
-start a claim in small claims court against the company and driver.

Just re-read the facts. You know the other parties insurance company name and policy. Start at the police report. The other company will want that without question. You couldn't blame them for not responding to an inquiry with out it. In reality its not a lot of money, they will probably just pay you out. Make sure you have everything when you call them. Report , repair bill and info.