Tesla Insurance Launches in California

Tesla has officially launched its own branded insurance product to customers in California.

The company said on Wednesday that Tesla Insurance will offer rates up to 30 percent lower than competitors.

“Because Tesla knows its vehicles best, Tesla Insurance is able to leverage the advanced technology, safety, and serviceability of our cars to provide insurance at a lower cost,” Tesla said in a blog post. “This pricing reflects the benefits of Tesla’s active safety and advanced driver assistance features that come standard on all new Tesla vehicles.”

Tesla says owners in California can purchase a policy in as little as one minute via tesla.com/insurance. For new vehicle orders, customers can request a quote prior to delivery once a VIN has been assigned to their Tesla Account.

Tesla said it plans to offer the product in other states soon.

 

[GregRF]

As I posted in the Investor thread:

2.75x what I pay now

2642/year Tesla
962/year State Farm

Differences include SF having slightly higher Bodily Injury limits(250k/500k vs 100k/300k), but I also have my deductibles set at double the cost of the Tesla plan (500/1000 vs 250/500)

Also have multi-car and home with SF.

 

[mal_tsla]

Will Tesla run this like they run service?

 

[Az_Rael]

Checked my price for the same coverage and mileage

Ameriprise 6 month on my 3: $804.87
Tesla 6 month on my 3: $1185.13

I am not signing up unless there is some really good benefit for the extra $$. Will be interested to watch how claims go with this. I suppose if you didnt have to argue with Tesla about using an approved shop or getting a rental for 3 months due to parts delays, maybe that would be worth it. OR if you get priority in the parts queue because now you are costing Tesla money when your part is delayed? Nah, that implies good communication chains internally.

 

[ElectrekPanda]

I got a quote and it will be lower than my Progressive Insurance: $116 vs $152 per month. I will switch to Tesla when my 6 month term with Flo ends next month.

 

[Ulmo]

I got a quote and it will be lower than my Progressive Insurance: $116 vs $152 per month. I will switch to Tesla when my 6 month term with Flo ends next month.

Do they charge an early termination fee? If it's lower than the savings ... and you consider the coverage equal (it never is), then no reason not to switch now.

 

[bjhinkle]

Tesla must read this thread. This is what I get...

 

[sreehyd]

Its way above my current insurance , Current insurance covers 2 cars, of which Model X cost is as below .
$404 /6months --
$930 /6months (Tesla Insurance)

Nope ... I am holding back ...

 

[jkoya]

I'm getting the same "Algorithm update in progress" message also...

 

[azred]

Sounds like anyone who thinks Tesla insurance is a good deal has probably been paying too much currently. Nice to have another quote when it hits AZ though. But unless significantly cheaper I’d be leery of customer service until they have a claims processing track record.

 

[Zaxxon]

Do they charge an early termination fee? If it's lower than the savings ... and you consider the coverage equal (it never is), then no reason not to switch now.

They don't. Also, I don't think they can. I've never had anything but a pro-rated refund with no issues when changing insurance.

 

[ElectrekPanda]

I have an idea for Elon: Buy a FSD option, get a discount on Tesla Insurance.

 

[Solor]

I have an idea for Elon: Buy a FSD option, get a discount on Tesla Insurance.

My guess is they already have this information on you (the car) and are quoting it accordingly.

 

[jholow]

About 25% higher than my State Farm insurance, identical coverage.

 

[KSilver2000]

I have an idea for Elon: Buy a FSD option, get a discount on Tesla Insurance.

It’s already factored in.

 

[Stevaughnator]

I just went to the Tesla insurance sight @ Tesla Insurance | Tesla and got the message "Algorithm update in progress.". I'll check back later when the update is complete.

 

[Big Dog]

Do they charge an early termination fee? If it's lower than the savings ... and you consider the coverage equal (it never is), then no reason not to switch now.

Early term fee not allowed in CA.

 

[Big Dog]

I have an idea for Elon: Buy a FSD option, get a discount on Tesla Insurance.

I was thinking just the opposite: buy TSLA's (over-priced) insurance and get FSD at no charge!

 

[No2DinosaurFuel]

Just 1 model S 2016 and the quote for apples to apples comparison coverage was 292 per month. Ameriprise is 115 per month. Hahah good one tesla. You almost had me there. No way am I switching. I think they meant your insurance cost will increase 120% to 130%.

 

[SSonnentag]

"serviceability" ... good one. Maybe eventual-serviceability.

 

[SOULPEDL]

Buying insurance from a company with no track record is a bit fraught. How well are they going to handle claims for example. Will they answer the phone? Do they have local adjusters?

I'd give it a while before jumping. All insurance companies are great until you need a payout, then comes the differentiation.

I'd take the small risk for a 20% savings. Tesla would not want to become a stingy payer, this is part of the mission in an overall effort to lower cost of ownership and get BEVs out to the mass market. So although payment and process could be difficult (at first), I bet they'll pay more often than my ins co. And maybe they replace dented panels vs repair them as well.

This is a no brainer... Arizona please!