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Blog Tesla Partners With Liberty Mutual for Insurance Program

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Tesla plans to offer insurance specifically designed for its electric cars through a partnership with Liberty Mutual Insurance.

Chief Executive Elon Musk has previously taken issue with the insurance industry’s handling of Tesla vehicles, like insurer AAA raising rates on Tesla vehicles in some markets, citing high claim frequencies and costs. Musk said in June that Tesla figures the average cost of insuring a Model S or Model X is about 5 percent lower than for other premium vehicles.

According the the support page, the insurance benefits include:



New Car Replacement – Allows for a brand new car within the first year in case of a total loss

Rate guaranteed for one year

Genuine Replacement Parts

Optional 24-Hour Roadside Assistance beyond the Tesla Warranty

Optional Rental Car Reimbursement to pay your rental costs for as long as it takes to fix your Tesla

Claims Valet Service to drop off a rental car at the scene or schedule a swap at an agreed upon time and place



Tesla has partnered to offer insurance for owners in almost 20 countries, but the this is the first time the program has come to the U.S.

 

 
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I'm surprised at what people have been saying about the rates as well. I wonder what Tesla's strategy here is... maybe a long-term plan?
unless tesla want to jump into the insurance game with both feet, this is the best that can be done. Auto insurance is a very difficult business, especially for a non insurance company. if tesla did take the plunge and became an insurance issuer their policies would be little different in costs than any other insurer. I am not going to enumerate all the many variable of underwriting auto policies. the only thing that tesla could bring to the table is maybe eliminating an anti tesla bias from some insurance companies. but an individual can avoid high prices just by doing a lot of shopping and price comparisons
 
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unless tesla want to jump into the insurance game with both feet, this is the best that can be done. Auto insurance is a very difficult business, especially for a non insurance company. if tesla did take the plunge and became an insurance issuer their policies would be little different in costs than any other insurer. I am not going to enumerate all the many variable of underwriting auto policies. the only thing that tesla could bring to the table is maybe eliminating an anti tesla bias from some insurance companies. but an individual can avoid high prices just by doing a lot of shopping and price comparisons

I think this is the case today, but as Tesla proves higher safety, higher residual value, lower replacement cost etc. rates should decline.
 
LOL. All the talk about Ameriprise, so I went to get a quote.... I guess no body wants to insure Californians! I'm 150 miles away from the fires, (which I'm guessing they are talking about) unless they know something I don't, uh-oh!
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that could be but do you think that this initiative by tesla will be the reason why?

I don't know why else they would introduce this program... It makes no sense to go to market with this only to piss existing customers off.

I take it as a first step of a multi-step strategy. Maybe Tesla will bring in additional partners or share data with insurers to convince them.

Not sure about next steps, but it just doesn't make sense as is.
 
I don't know why else they would introduce this program... It makes no sense to go to market with this only to piss existing customers off.
I can't believe that their intent is to piss off clients, it is an attempt at offering a service. If Liberty gives the tesla a fair shake in their underwriting some might find the relationship to be of some value.
It's not as if tesla is mandating or saying that liberty is the insurer of choice.
 
Just another anecdotal data point: I filled out the questionnaire and got a quote for my two cars that was almost 4x my existing insurance cost.
(I've also been getting spammed daily even after requesting "unsubscribe".)
It does pay to shop around for insurance. In my case, this isn't a good option.
 
Very interesting because I am with Liberty Mutual right now, have had no claims or tickets or accidents, and our insurance went up 40% when it renewed for the year last month. I was told by my agent that liberty mutual has moved to a new system, and that the cost of replacing and repairing teslas is so high that it has raised my cost.

I guess I need to take Elon’s advice and find a new provider! :)
 
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Maybe it depends on where you live. I have Liberty Mutual since day one and I have shopped around and can't find anyone cheaper. I had Gieco with my previous car and they tripled it for the Model S. I tried Allstate and way high, State Farms wouldn't even give a quote because they claimed they couldn't cover an electric car. I tried Amica and they wanted $2800+/yr. I've had the car over 2 yrs and I still get calls saying these other insurance companies want to save me money and when I get quote for same coverage as I currently have with Liberty, it is usually doubled. They want me to pay 6 mos what I pay Liberty for a year. I had an accident and Liberty was great with rental, replacement parts, using only certified repair shop and it didn't go up that much.
 
We don’t own a Tesla, but we do have Liberty Mutual for our home and auto insurance, and the rates are competitive. Although, I think the prices become more competitive when you have both home and auto policies, that could be why people are seeing outrageous premiums for auto only.
I have multi cars, home owner and renter insurance with Liberty M. However they quoted me on my 2013 S85 $2200/yr while Progressive is $1000/yr.
 
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Very interesting because I am with Liberty Mutual right now, have had no claims or tickets or accidents, and our insurance went up 40% when it renewed for the year last month. I was told by my agent that liberty mutual has moved to a new system, and that the cost of replacing and repairing teslas is so high that it has raised my cost.

I guess I need to take Elon’s advice and find a new provider! :)

Maybe the US insurance market isn’t so different from the U.K. one. In >25 years of insuring cars in the U.K. I’ve only renewed once with a provider. Every other time they’ve been having a laugh with their irrationally inflated prices.
 
Auto insurance rates are determined by the claim experience in each State. Each state then has several/many territories that define rates based on claim experience of the vehicle, and driver. So, this is a marketing partnership, be prepared for sales calls and spam. Car rental coverage is not for a like, kind, and quality vehicle. It usually has a set dollar limit per day or per claim. Once exhausted you’re on your own for the expense. All insurance companies are not alike. Look at the claim complaint ratio by insurer and the average total loss pay out. This will tell you which insures fight with customers, repair shops, and others in the industry the most. :eek:
 
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This is my first post. Why? Not because I just bought a 2017 S 100D. But, because As a Texas trial lawyer, I sue insurance companies for a living. Liberty Mutual would be amongst my last choice—and, to avoid frivolous retaliatory litigation, I will say no more. (But “Liberty,” or shall we say your real name, Wausau, if you want me, you know where to find me).
I have probably sued every insurance company doing business in Texas. Except one: AMICA. I have been with AMICA since 1985 and they have never done any of the things I’ve sued other companies for doing. My premium went up $129.00 on a 500k policy from trading in a 2015 Genesis 5.0 for the 100D.

I am not being paid for this endorsement; these are my opinions after 32 years of coverage with one very good company.
 
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This is my first post. Why? Not because I just bought a 2017 S 100D. But, because As a Texas trial lawyer, I sue insurance companies for a living. Liberty Mutual would be amongst my last choice—and, to avoid frivolous retaliatory litigation, I will say no more. (But “Liberty,” or shall we say your real name, Wausau, if you want me, you know where to find me).
I have probably sued every insurance company doing business in Texas. Except one: AMICA. I have been with AMICA since 1985 and they have never done any of the things I’ve sued other companies for doing. My premium went up $129.00 on a 500k policy from trading in a 2015 Genesis 5.0 for the 100D.

I am not being paid for this endorsement; these are my opinions after 32 years of coverage with one very good company.
You'll appreciate my standard warning: "Never use insurance companies with state and/or farm in their name." :)
 
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I've had Ameriprise for over 15 years and they have been indeed the cheapest. Then I got into an accident. Ameriprise was simply a nightmare to deal with. They thought the repair costs were too large so they hired an independent appraiser who ended up using the wrong car and model resetting my whole process. From accident to starting the repairs, it took 2.5 months. I ended up getting the cheap service from the cheapest insurance after the accident. Truly horrendous compared to a friend who has a Tesla and Progressive. Be careful with Ameriprise!
 
I've had Ameriprise for over 15 years and they have been indeed the cheapest. Then I got into an accident. Ameriprise was simply a nightmare to deal with. They thought the repair costs were too large so they hired an independent appraiser who ended up using the wrong car and model resetting my whole process. From accident to starting the repairs, it took 2.5 months. I ended up getting the cheap service from the cheapest insurance after the accident. Truly horrendous compared to a friend who has a Tesla and Progressive. Be careful with Ameriprise!

Other end of the claim spectrum, a kid on a bike in a parking lot crashed into our 2 month old Lexus RX350 taking out left front fender and a dent in the driver door. They sent out an independent adjuster and everything with Ameriprise went smooth as silk. I was very satisfied. No other claims experience with them so if it was a major claim, it may be a different story.
 
It's difficult to get good information. There are a lot of anecdotes here but "The plural of anecdote is not data".
One source I have found is the California insurance complaint analysis. They investigate complaints and rank companies by number of "justified" complaints and develop a ratio of complaints/subscriber. One criticism of this is that some companies have very small numbers of policies so I don't think the statistics would be reliable for companies with fewer than 500,000 policies.
Interesting read:
Automobile Complaint Composite Report

My auto insurance company does not appear in this list but I looked it up and there were no complaints during the past three years. Don't know if this is because they good or because they are small (maybe both).
 
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