Blog Tesla Partners With Liberty Mutual for Insurance Program

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.

 

 

[Super_Popular]

Interesting

Tesla Partners With Liberty Mutual for Customized Insurance Plan

 

[rxlawdude]

Prices are non-competitive, based on many posts of owners doing inquiries. Further, expect to be hard selling phone spammed if you request a quote.

 

[whitex]

Is there any waiver that one signs to allow Tesla to sell the insurance company stats on your driving (similar spyware to what some insurance companies want to push already on their customers today by giving discounts if you plug in a tracking device in your car that reports your driving history back to them)?

Also, does the rental benefit include same or better Tesla model for the entire duration of the repair? That seems to be the biggest complaint that Tesla owners have - most insurance companies don't cover a Tesla rental, especially when parts required for repairs take weeks or months to arrive.

 

[jbcarioca]

Prices are non-competitive, based on many posts of owners doing inquiries. Further, expect to be hard selling phone spammed if you request a quote.

That was my surprise, although they've stopped spamming me after two days.

 

[BrettS]

Prices are non-competitive, based on many posts of owners doing inquiries.

It certainly was for me. I got a quote last night for my 2015 Model S and my other non Tesla car and it was literally double what I am paying now with esurance.

 

[pinball_player]

The other bad thing about this is that I currently have Liberty Mutual insurance, and even with the new partnership, the prices are the same as before. One would hope that the prices would be less than what Liberty Mutual was charging before.

 

[stefanp]

It certainly was for me. I got a quote last night for my 2015 Model S and my other non Tesla car and it was literally double what I am paying now with esurance.

I got a quote with Liberty for my 2017 Model S in March. Live in South Florida. The quote I got today was IDENTICAL to the quote I got in March. Over $500 per year more than I am paying with Progressive.

 

[tsukiakari]

The quote I got via the Tesla link is the same quote they gave me through the normal route. It's straight-up $589/mo., which is absolutely absurd. Also, the phone spam gets real after requesting a quote online--even though I put in a fake phone number, they still managed to call me about 3-4 times/day until I finally answered, told them they were insane, and demanded that they stop calling.

 

[T-Will]

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.

 

[AZZ1]

I have yet to find anybody to offer me a lower price than Geico. I have three cars including my Tesla (and a teenage driver) and the last time I got a Liberty Mutual quote it was around $12k/year. The most ridiculous insurance quote I have ever received. And I have homeowners through them.

 

[maccore2]

I agree with everyone, I expected the partnership to be more than just Liberty being able to put a picture of a MS on their website. In Indiana, they wanted $900 more per year than Ameriprise, the best price I’ve found thus far vs State Farm, Allstate, Progressive, and Gieco.

 

[Poopsy]

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.

 

[BrettS]

Maybe it depends on where you live

Yeah, I think insurance in general has a lot of variables and the location and drivers can make a huge difference. Normally I wouldn’t bother to post in a thread like this as insurance quotes can vary so much for so many reasons. But like someone said earlier, since they are billing this as a Tesla specific product you would expect to see something more than just a picture of a Tesla on their website and a standard quote.

 

[Tracking]

Elon is usually kinda smart. This Liberty Mutual program looks kinda stupid. What's up with that?

 

[kort677]

Yeah, I think insurance in general has a lot of variables and the location and drivers can make a huge difference. Normally I wouldn’t bother to post in a thread like this as insurance quotes can vary so much for so many reasons. But like someone said earlier, since they are billing this as a Tesla specific product you would expect to see something more than just a picture of a Tesla on their website and a standard quote.

as noted in many other threads, there are so many variables that go into the mix of underwriting an auto policy that it is unlikely to be able to use one person's quotes as any sort of a yard stick. #1 factor is driving record. #2 is levels of coverage. then there is the location of where the vehicle "lives" also a factor is the car used for work, commuting, if commuting how far is it driven, you age, your family members driving records and age, and a much overlooked thing is your credit records, a poor fico could result in higher rates. these are just a few things that enter into the mix.
the bottom line is to get as many quotes from different companies and choose accordingly.

 

[kort677]

Elon is usually kinda smart. This Liberty Mutual program looks kinda stupid. What's up with that?

it is far from stupid. Tesla is a conduit, nothing more.

 

[Tracking]

I'm announcing a new partnership I have with my new partner, Angelina Jolie. True, the partnership provides no benefits whatsoever, but hey, I'm calling it a partnership.

 

[rolling18]

I'm announcing a new partnership I have with my new partner, Angelina Jolie. True, the partnership provides no benefits whatsoever, but hey, I'm calling it a partnership.

Haha that kind of sounds like when rappers or hip hop "artists" give themselves titles and names like Dr., Queen, King,.. Ect...

 

[electric frank]

I agree with everyone, I expected the partnership to be more than just Liberty being able to put a picture of a MS on their website. In Indiana, they wanted $900 more per year than Ameriprise, the best price I’ve found thus far vs State Farm, Allstate, Progressive, and Gieco.

I'm with you on Ameriprise (Costco) - gave up my full coverage 2006 Lexus SC430 for same coverage on 2014 S85 - premium only increased $88/year. They were WAY WAY lower than AAA, State Farm, and Progressive.