Blog Tesla Says a Fix for Insurance is Weeks Away

[SageBrush]

Hi Sage can you enlighten me on ROOT? Does it plug into the OBD port?

No OBD port monitoring. It is all via the phone
My WAG: Root may save young drivers money if they are safe drivers (as defined by Root) and do not have much of a driving history to go by.

 

[ssq]

The first year or two of each model is cheap until wrecks start happening and the insurance companies have to start paying huge repair bills.

Just wait, your rate will go up at some point.

2016 Model X 75D - $90/yr, 300k/500k limit, 1000 deductible, 2 drivers in mid 30s
2017 Model 3 - $55/mo, same limits, deductible
2012 BMW 528i- $87/mo (not even driven anymore)...

 

[jerry33]

Odd. My Model 3 is cheaper than any vehicle i've owned over the last few years (and i've owned about 8 different cars). $69/m for full coverage. I'm sure this is mostly about the S and X which are $80-$150k cars. Yes, i'd assume they'd be expensive to insure!

Until Denise wrecked a couple of her cars the S85 was no more expensive to insure than the Prius.

 

[brkaus]

I can also see -

Low rates for exclusive of chill mode. Charge for ludicrous mode buy the minute.

 

[jrwaters1]

Odd. My Model 3 is cheaper than any vehicle i've owned over the last few years (and i've owned about 8 different cars). $69/m for full coverage. I'm sure this is mostly about the S and X which are $80-$150k cars. Yes, i'd assume they'd be expensive to insure!

I pay 466.89 every 6 mo for full coverage. When I bought the car in Sept, 2017, I was paying 470. That was half of what I was paying for my wife’s car (40k Avalon). I worry that one day they will raise my premium by a bunch.

 

[thomas2005]

I Would just shop around. I was with Ameriprise whom I have had for many many years. After one year insuring my Tesla, they upped my insurance many hundred dollars on a six month policy.
I then checked into about 7 other insurers and Progressive offered me a GREAT price.
Insurers are always changing they way they decide pricing for policies. Just keep checking around.

 

[afadeev]

pretty sure I would be paying double driving a P100D... I mean come on... you cant expect to sell one of the fastest vehicles in the world and not expect ludicrous pulls daily

Per article: Musk said Tesla insurance customers “have to agree to not drive the car in a crazy way,” or, “they can, but then the insurance rate is higher.”

Sounds like a usage-based GPS monitored insurance offer.
With Tesla-level customer service.

Count me highly skeptical.

a

 

[milleron]

I let ROOT monitor my driving. They decided I was a 10/10 safe driver ... and offered me a policy with less coverage for ~ 25% more than I pay with Progressive.

<<shrug>>
I hope Tesla succeeds, but beyond driver risk stratification from monitoring the car I think the real improvement in rates will occur in places where Tesla successfully reduces repair costs by using their own facilities.

Did the same. Got the same score. They replied that they really liked my "braking;" I guess regenerative braking will make it look to their app like one brakes hardly at all . But their quote for my two cars was just a tad more than I pay to USAA for comparable coverage. The point is that Root did NOT "reward" me for being a safe driver in any way I could easily discern.
I hadn't thought of the cost savings from Tesla Repair facilities, but I certainly hope that you're right about that.

 

[milleron]

With Tesla-level customer service.

Count me highly skeptical.

I agree, but I'm guessing that they will use an existing insurance company for their accounts and claims.If so, customer support may well be above "Tesla-level." It could hardly be worse. Fingers crossed.

 

[jboy210]

I wonder who this targeted at? My Model X insurance is about the same as my insurance for BMW X5.

I will admit I am old, so perhaps that it is it. I remember as a young man turning 25 and getting married in the same year cut my car insurance by 75%.

 

[brkaus]

I wonder who this targeted at? My Model X insurance is about the same as my insurance for BMW X5.

I will admit I am old, so perhaps that it is it. I remember as a young man turning 25 and getting married in the same year cut my car insurance by 75%.

Maybe performance/ludicrous drivers? They can replace the cars pretty cheap, esp the software parts if totaled.

Insurance was the big thing that kept be from getting P100DL... Not that I drive like that except once, but, I would have liked it

 

[CyberShy]

I would like top see Tesla partner with an insurance company on reducing repair costs. Instead of charging FULL retail to repair the cars, give those owners a break thus giving the insurance companies a break thus lowering rates for repairs. It's basically like negotiated costs for health care, except its car repair.

Less cars will be totaled and rates may drop.

 

[HawaiiMike]

If you don't mind my asking, who are you insured with?

USAA

 

[HawaiiMike]

I was stunned when my insurance went up by 80% when I got the Tesla. The original estimate was just a little more than my Lexus. But, it certainly doesn't seem justified by the NHSTA numbers in the article. It would be interesting to see the actual data on the repair cost for the Tesla as compared to any other $65K car. I noticed that my dual motor AWD is called a 4x4 by the insurance company. Maybe they think I an out doing hill climbs and off-roading in their classifications as a way to jack up prices. Remember it is all about profit.

Hi, posted this below: I'm puzzled. I'm a USAA member and I find all Tesla models to be less expensive than their equivalent ICE competition. A Model 3 is $1,200 a year compared to a BMW 320i at $1,400. A Model S is $1,900 a year compared to an Audi A8L at $2,400.

 

[HawaiiMike]

Maybe performance/ludicrous drivers? They can replace the cars pretty cheap, esp the software parts if totaled.

Insurance was the big thing that kept be from getting P100DL... Not that I drive like that except once, but, I would have liked it

I'm puzzled. I'm a USAA member and I find all Tesla models to be less expensive than their equivalent ICE competition. A Model 3 is $1,200 a year compared to a BMW 320i at $1,400. A Model S is $1,900 a year compared to an Audi A8L at $2,400.

 

[afadeev]

I would like top see Tesla partner with an insurance company on reducing repair costs. Instead of charging FULL retail to repair the cars, give those owners a break thus giving the insurance companies a break thus lowering rates for repairs. It's basically like negotiated costs for health care, except its car repair.

Less cars will be totaled and rates may drop.

The problem seams to be less with Tesla gauging repair shops on car parts (which is what you are implying), and more to do with the fact that Tesla can't get it's own supply chain streamlined to provide the right parts to the body shops in the reasonable time.
The excessive delays and wait times cost money and aggravation to both the shops and customers.

More here:

The excessive body structure complexity in Tesla's, especially Model 3, increase cost of repairs:

a

 

[brkaus]

I do realize some repairs have the body shops waiting a long time for parts. Shame on Tesla!

But I do not think that is 100% of the cases. I think it makes for an easy excuse for a body shop, especially poorly run ones.

 

[Niroc]

I have a 2011 Ford Mustang that is worth about $16000. I called to get a price quote for the M3. It was actually a few bucks cheaper than the Ford! Testament to the safety of the vehicle.

 

[Tugman]

Who do I contact to get quotes for Insurance in New Hampshire?

 

[Carbuf222]

I'm puzzled. I'm a USAA member and I find all Tesla models to be less expensive than their equivalent ICE competition. A Model 3 is $1,200 a year compared to a BMW 320i at $1,400. A Model S is $1,900 a year compared to an Audi A8L at $2,400.