Want to buy a Model 3, insurance is crazy expensive

[Salted]

Buy the worst car you can stomach, with liability coverage only, and specify "for pleasure" (not work). Even if you just park it, barring incidents, your rates will drop. The time-to-discount varies by area, car, and company, but when it begins get your M3 quotes again.

This reminds me of a silly but clever movie: "How to be a Latin Lover". Basically, get married for money.

 

[Magnets!]

In California, check out Tesla Insurance. Saved us $$$$.

Note that due to auto burglary rates, areas like LA and SF are very expensive for all car owners. Auto burglary is a ticket now. A prisoner was released early due to Covid, and was busted 3 times in one day for auto burglary. Finally a Grand Theft Auto allowed for his arrest.

Break-ins do not drive insurance rates. Take a look at your policy. In my case comprehensive is less than 5% of the total.

 

[C141medic]

All of those things applied to me up to last September and I was still paying a high price for insurance. My premium went up almost $200 for this next period. (One of) The price we pay to live here in CA.

Wow. I read your earlier post about your 6 month payments for your Model 3. I’m here in NJ and only pay a little over $100 monthly for mine with similar coverage. And I thought NJ was high for auto insurance rates?

 

[acarney]

Another option may be to pay for the car in full (if you have that ability) and then not carry

He's not from USA. We are number 1 for highest insurance rates. This looks like normal price to me. Wait to you see your first hospital bill...

$200/mo looks normal?! I’m paying ~$95/mo for pretty good coverage on my SR+ with progressive...

 

[cerealzealot]

Thanks for all the messages I really appreciate it. I'll try to negotiate if I can. And hopefully the rates will drop after a few months...

 

[jkdman123]

Another option may be to pay for the car in full (if you have that ability) and then not carry

Whatever you do, DON’T do this. Getting caught without insurance could mean your vehicle gets impounded, you could be fined up to $1000, and once you finally get insurance, your rates will be even higher. Don’t be a deadbeat. Bad advice. Like, ridiculously stupid bad advice.

If you can’t afford the insurance on a Tesla, then I’m sorry, you can’t afford a Tesla.

 

[RayK]

Is that a CA thing? I am paying $850 a year for the same coverage. 32y/o. no driver history.

Wow. I read your earlier post about your 6 month payments for your Model 3. I’m here in NJ and only pay a little over $100 monthly for mine with similar coverage. And I thought NJ was high for auto insurance rates?

Must be where I live . I've had a couple of speeding tickets in the last 25 years but I went to traffic school to keep them off my DMV record. I think there's been two claims I've made with them in the last 30-35 years, neither of them for any significant money (IMO; auto burglaries). Prior to the purchase of my Model 3, I asked for insurance quotes from a couple of other companies. At the time (mid-2018), Allstate was still among the lowest (was not the lowest). Since I've had them from the late '70s I thought my loyalty might be a consideration for offering a low rate. According to them, I am getting a discount of $1030 for the term (multiple policy, good and distinguished driver). The 2011 Murano costs $450 (28 y.o. daughter) and the 2018 Ridgeline (wife) is $490 for the exact coverage as my Tesla, except they do no have the replacement cost option (which is $80 for mine). I'm going to call my agent tomorrow and say that since I've been semi-retired from last September, my annual mileage is going to be lower and see what happens.

edit: In case anybody is curious about my coverage...

 

[EV-by-the-Sea]

Is that a CA thing? I am paying $850 a year for the same coverage. 32y/o. no driver history.

Yes, granted it was about ten years ago now, but when we moved from the middle of the country to California our auto insurance rate went up between 2-3x.

 

[Ferengii]

I also switched to Progressive in Colorado 6 months ago with similar savings. My first renewal bill in May is up almost 20% (before any COVID-19/no-driving credits). Shopping around indicates the new rate is now comparable to other companies (no longer a “better” price).

 

[dmurphy]

Wow. I read your earlier post about your 6 month payments for your Model 3. I’m here in NJ and only pay a little over $100 monthly for mine with similar coverage. And I thought NJ was high for auto insurance rates?

I thought we were too, but feeling better by the minute. Maybe NJ isn’t top of the list anymore? I’m paying right about $70.50/mo for the Tesla. State Farm. Limits below.

 

[steve56]

Hello,

So I'm 25, never had a car before (I'm not American, but I live in California right now) and want to buy a Model 3.

I tried a few quotes online and I'm seeing some crazy numbers, $300/month minimum and I'm seeing some go to $700 (ameriprise).

Does anyone know how I could get this lowered down? Is there any way to negotiate? Would Tesla insurance offer me a better rate? I'm working remote (not just because of the situation, my work is remote), so I wouldn't drive it that much (if that matters).

I switched from Farmers to Liberty and the prices were way way less for the same coverage. At first Liberty gave me a pretty high quote but then I mentioned that Tesla has a partnership with Liberty. The agent looked it up and came back with much lower quotes once they realized they have a partnership with Tesla. I own Performance models of both the Model X and Model S. I used to have a non-Performance edition of the Model S that had really low insurance rates even without the Tesla insurance partnership. But once I upgraded to a Performance edition, the rates went through the roof. The insurance company said they consider the Performance editions to be "Sports Cars" and insurance on sports cars is always higher than the standard edition of the same model vehicles.

 

[Big Dog]

Is that a CA thing? I am paying $850 a year for the same coverage. 32y/o. no driver history.

You are also 7 years older - big difference. But yeah, CA thing. After Prop 103 was passed, the primary criteria for insurance is your driving record. Age matters, M/F, garage location (city/suburban/rural) and a bunch of other factors.....

OP: look for a minimum of $100k/$300k.

Automobile Insurance

 

[C141medic]

I thought we were too, but feeling better by the minute. Maybe NJ isn’t top of the list anymore? I’m paying right about $70.50/mo for the Tesla. State Farm. Limits below.

View attachment 538462

That’s really good. I have Allstate and my deductibles are zero. I think that’s why I’m paying a little more for their “premium” coverage which includes new car replacement cost, vanishing deductible, and accident forgiveness.

 

[dmurphy]

That’s really good. I have Allstate and my deductibles are zero. I think that’s why I’m paying a little more for their “premium” coverage which includes new car replacement cost, vanishing deductible, and accident forgiveness.

To their credit, SF gives me no reason to shop. The $0 deductible is nice, but $100/$500 seems reasonable enough as well... I'm not going to let those keep me up at night.

I do agree with you - there really IS a difference; not all insurance is created equal!

 

[focher]

And I just got back about $45 for the month of April due to the stay-at-home orders. Since I'm driving less, and therefore being exposed to accidents less, Allstate (and other car insurance companies) has refunded me about 15% of my premium over the six month coverage.

Just to be clear, they didn’t do that out of the kindness of their heart. The state insurance commissioner mandated it for all auto insurance in California.

To the OP, if you’re in California you can get a quote from Tesla. You just have to call them if you don’t already have a car in your account. I saved about $1k per year compared to what GEICO was charging us plus I upped my liability from 100/300 to 250/500. We pay about $250/mo for our X and 3 Performance together. Married helps. Another way to bring your rate down is to up your deductible if you can afford the out of pocket.

 

[Wennfred]

Hello,

So I'm 25, never had a car before (I'm not American, but I live in California right now) and want to buy a Model 3.

I tried a few quotes online and I'm seeing some crazy numbers, $300/month minimum and I'm seeing some go to $700 (ameriprise).

Does anyone know how I could get this lowered down? Is there any way to negotiate? Would Tesla insurance offer me a better rate? I'm working remote (not just because of the situation, my work is remote), so I wouldn't drive it that much (if that matters).

You got 1 more year, 26 is the magic number, then call Wawanesa, with no infractions they will be the lowest.

Fred

 

[Dutchie]

It's crazy

Progressive is $288/month with the lowest coverage ($15K/$30K/$5K).

It amazes me how low the coverages are in the US. If you ever drive to Canada (BC) please make sure you have extra coverage. Awarded damages here run easily into $100K++++. Just have a look at some examples chronic pain – BC INJURY LAW

 

[MichaelP90DL]

Tessie is insured with Geico, about $250/month. Age 74.

 

[trm2]

Since you have never had a car, you likely never had insurance. The lack of prior insurance is lumping you in with all of the people who are driving without insurance, starting a policy and never paying a monthly premium and such.

Your rates go down the longer you are insured also. If you don’t need a car yet, you can get an insurance policy anyway. Ask for a Named Operator policy. You will have liability insurance, but no car to insure, so the policy should be cheap (you are also covered if you borrow someone’s car). Six months from now, if you get a car, you have six months prior insurance, so your rates should be cheaper (3 - 5 years prior insurance is where the biggest breaks come in).

 

[Ofarlig]

Damn, car insurance in the US really seems to have low limits. Can you guys be liable for damage caused over the limit you choose?