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.

 

[wrishel]

Anyone who's ever had an accident knows that the critical quality factor is the customer service as you go through the process of getting an estimate and getting paid for medical expenses.

Based on my own experience with Tesla support (wait times, evasive answers, dropped calls, and failure to call back) I can't imagine anyone in their right mind thinking that Tesla will get this right. Tesla's core competence is building great cars and advancing the state of the art ... NOT customer support.

 

[FlatSix911]

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.

Good point. If the Tesla insurance program is similar to Tesla Service... run, don't walk to your independent agent.

 

[eye.surgeon]

So my wait time on the phone was about 51 min but I finally got through and had a very positive feeling about the service...

 

[engle]

So, then, is Tesla doing this as an exercise ahead of possible robotaxi in the unknown future?

Yes!

"Does Tesla Insurance cover ride sharing?
Like other personal insurance policies, Tesla Insurance covers the personal use of your vehicle and does not extend to commercial activities like ride sharing, which require a commercial policy. Tesla Insurance plans to offer a commercial policy in the future to support the Tesla ride sharing network."

Ref: Tesla Insurance FAQ

I can't wait for the Tesla Network! I'll drive the 2020(?) Model Y Dual Motor I ordered and rent out my 2018 Model 3 Dual Motor. If the math works out, then maybe I'll buy two Model 3 "Standard Range Plus" w/ FSD @ $44,990 + tax ($649/month) to fill my 3rd and 4th garage spaces and add them to the Tesla Network. Something tells me the math won't work out since I live only 6 miles from the factory I'd be competing with a surplus of TSLA-owned robotaxis...

600 messages in 8 years = 0.205 per day so quality over quantity? I used to waste so much time reading TMC speculation during the long Model X production hell. At least I bought some TSLA!

 

[mdjak1]

It's stupid.

Elon must not have shopped insurance for himself for decades.

How is the product going to account for your home, non Tesla vehicles and umbrellas?

Any "savings" if any - will get negated somewhere else.

Yeah, usually bundling autos and other policies together reduces the cost significantly.

 

[mikneyah]

I like the idea of then insurance product, but for not it’s going to be costly like any other insurance! When the robot taxi happens, it will be cheaper then, but not now out the gate!

 

[BZM3]

its more expensive for some people, its cheaper for some people. Such is the nature of insurance.....................

i'm confused at the people rating this disagree? how is what i'm saying false? it is clearly saving some people people, and charging more for others. ??? how is that not the nature of insurance?

 

[ItsNotAboutTheMoney]

Looks like they updated their algorithm. It went down by ~$100 / month for me for the Model 3, but still about $300 more per 6 months for the Model 3 and $150 more per 6 months for the Model X.

$450 more per 6 months for "luxury" Tesla insurance?



Wondering the same...

Understanding Uninsured Motorist Property Damage Insurance - NerdWallet

 

[shrspeedblade]

Yes!

"Does Tesla Insurance cover ride sharing?
Like other personal insurance policies, Tesla Insurance covers the personal use of your vehicle and does not extend to commercial activities like ride sharing, which require a commercial policy. Tesla Insurance plans to offer a commercial policy in the future to support the Tesla ride sharing network."

Ref: Tesla Insurance FAQ

I can't wait for the Tesla Network! I'll drive the 2020(?) Model Y Dual Motor I ordered and rent out my 2018 Model 3 Dual Motor. If the math works out, then maybe I'll buy two Model 3 "Standard Range Plus" w/ FSD @ $44,990 + tax ($649/month) to fill my 3rd and 4th garage spaces and add them to the Tesla Network. Something tells me the math won't work out since I live only 6 miles from the factory I'd be competing with a surplus of TSLA-owned robotaxis...

600 messages in 8 years = 0.205 per day so quality over quantity? I used to waste so much time reading TMC speculation during the long Model X production hell. At least I bought some TSLA!

Just called to satisfy my curiosity as my quote was significantly less than I'm paying now, but CURRENTLY rideshare (Uber/Lyft/etc.) is excluded on the policy. Disappointed but not surprised. Hope this helps anyone else who was wondering and I hope they make the addition soon.

 

[jordanair45]

Got it. It was only about $17/month cheaper than my currently policy, but gotta support the shareholders

However, it did offer a little more coverage than my current policy.

 

[RubberToe]

Uninsured motorist property damage: This covers expenses for damage to your car caused by an at-fault driver who doesn't have insurance (uninsured) or by a hit-and-run or miss-and-run.

On the form, the maximum amount for this is $3,500. Does that mean that if someone who is uninsured totals my Model 3, that the insurance only covers the first $3,500 and that I'm responsible for the rest of the amount I owe on the car?

Actually, I think that would be covered under the "Collision Deductible"..

In any case, Teslas quote is $209 per month single car. My current cost through AAA with 4 cars on the policy is $341 per month for the Model 3 alone. I ran over a parking stop in 2017 and filed a claim for the $3,500 bill (lesson learned: don't file insurance claims). My insurance went up to $4,100 per year due to that. They plan on charging me another $4,100 in February.

Tesla here I come pending the question above...

RT

Just signed up, Tesla cost was $1,114 for 6 months versus AAA at $2,050.

RT

 

[Zorg]

Quote is $120 a month. State farm is $170

 

[Hankmancini]

Was disappointed that savings with Tesla insurance were not greater.

Tesla $2,160/yr
Auto Club $2,270/yr

Only vehicle
Location 92649
Liability $250/500K
Property $100K
Collison deductible $1,000
Comprehensive deductible $500
Pleasure only (retired)
Both wife and I no tix or at fault accidents > 5 yrs

Auto Club excellent service. Tesla insurance service level unknown.
Savings would have to be greater to consider.

 

[Bet TSLA]

Anybody have a stand-alone umbrella policy they like? If I have my Teslas insured with Tesla and my other cars insured with some other insurer, then what?

 

[Az_Rael]

Anybody have a stand-alone umbrella policy they like? If I have my Teslas insured with Tesla and my other cars insured with some other insurer, then what?

Your other car insurance company might offer umbrella policies. I have one through Ameriprise, but I am unsure if they will sell a policy as a stand alone. Worth calling around though.

 

[Uncle Paul]

Was disappointed that savings with Tesla insurance were not greater.

Tesla $2,160/yr
Auto Club $2,270/yr

That savings is enough to buy a full tank of gas...oh wait...

 

[RubberToe]

Just signed up, Tesla cost was $1,114 for 6 months versus AAA at $2,050.

RT

This is almost beyond belief. Mrs. Toe turned in a Buick Encore lease about 3 days before I switched the Model 3 off the AAA policy to Tesla insurance. They sent us a refund check, with a new breakdown for the 3 remaining vehicles, the Model 3 being one of them.

The line item for the Model 3 was increased to $4,997. Collision was $3,285 with a $2,000 deductible. Bodily injury was $632. Comprehensive was $455 with a $2,000 deductible.

I knew I should have been an insurance salesman.

Getting $1,500 back from AAA, and Tesla charges monthly which I like. Could be another Vegas trip coming up to photograph the EA charger progress at Baker.

RT

 

[Bet TSLA]

Moved my two over to Tesla from Geico. Bizarrely, the cost was different by exactly three cents. But, hey, now I have identity theft insurance! Not to mention if I lose my Model S fob for the third time it will cost me only $50 to replace.

Geico says they will continue to keep my umbrella policy in force so long as I have half or more of my cars insured with Geico (but they add a $69 surcharge for the privilege). So two out of four is good enough. But I do see that RLI (rlicorp.com) does stand-alone umbrella policies. Anybody familiar with them?

Tesla insurance so far has screwed up in a variety of small ways. First, I got a policy but said to start it a few days in the future. Then I added my wife to the policy, then the second car, still saying to start it in the future. A couple days later I discovered it was already started, right after I modified it. So they got that wrong and they said they couldn't fix it.

Next, they spelled my wife's name wrong. Next, they spelled my name wrong. And the guy I was talking to was utterly unable to understand what I was asking about when I asked if my vinyl wrap was covered in a collision in any way.

Independently, I guess, Tesla's web site is fairly wrong. My 3 page still says I should complete my purchase of insurance. My S page has a link to the insurance information for both vehicles. So I can get what I need to see, but they need to clean things up.

 

[SongjinDK]

I can only add more drivers after buying the Tesla insurance. Do they adjust the prices base on the driver added?

 

[Bet TSLA]

I can only add more drivers after buying the Tesla insurance. Do they adjust the prices base on the driver added?

Adding my wife to my policy cost little or nothing. Adding another car was less than doubling, but not much less. I expect that adding a teenager with an accident on her record will add significantly to the cost, but I haven't tried it.

You can experiment by getting insurance with a start date next month. But given that mine somehow started while I wasn't looking, I would advise being careful about that.