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Want to buy a Model 3, insurance is crazy expensive

trm2

Active Member
Apr 3, 2016
1,050
1,640
CLE
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?
Yes, each state sets the minimum limits, but one can purchase more. Since I work in the industry, I’ll avoid stating what I feel about those minimum limits.:)
 

JayNJ

Member
Jul 13, 2018
239
119
New Jersey
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?
Yes. Most people carry much higher limits since the rate increase is pretty minimal. I usually carry 250K limits and pay $91/month in NJ (45 male).
 

dmurphy

Woof.
Dec 7, 2018
3,474
4,682
New Jersey - Morris County
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?

Absolutely, yes.

What I didn't show is that I also carry an additional $2 million "umbrella" liability policy over all of my insurance. It's very cheap ($125/year or so) but protects one's assets.
 

Ofarlig

Member
Mar 4, 2018
283
244
Sweden
Yes, each state sets the minimum limits, but one can purchase more. Since I work in the industry, I’ll avoid stating what I feel about those minimum limits.:)

Over here in Sweden we do not really choose limits, they are set by the insurance companies to cover whatever might be necessary. Standard is they cover up to around $30 million per accident and the policy holder cannot be liable for anything over that amount.

Yes. Most people carry much higher limits since the rate increase is pretty minimal. I usually carry 250K limits and pay $91/month in NJ (45 male).

250K seems low as well, couldn’t that be reached just by hitting someone badly?

Absolutely, yes.

What I didn't show is that I also carry an additional $2 million "umbrella" liability policy over all of my insurance. It's very cheap ($125/year or so) but protects one's assets.

Ahh, okay that makes more sense even though I guess people can get screwed over if they lack the liability policy. But even at $2 million what would happen if you hit and total a rare car valued at say $5 million and was found at fault?
 

rawrguthlaf

Member
Apr 17, 2019
37
40
Philly
I know when I was growing up, some Auto Insurance companies provided steep discounts if you completed a valid driving school. I would ask the insurance companies if they do anything like that. It may cost some money up front but you could save a lot over time. Mine was an assertive driving school.
 

trm2

Active Member
Apr 3, 2016
1,050
1,640
CLE
It varies on the model also. Your insurance is higher for a 60k model 3 vs a 35k.

How do you get umbrella insurance??
Contact your current insurance company. The big auto/home insurance companies will offer umbrella policies also. And yes, they are cheap under most situations.
 

dmurphy

Woof.
Dec 7, 2018
3,474
4,682
New Jersey - Morris County
It varies on the model also. Your insurance is higher for a 60k model 3 vs a 35k.

How do you get umbrella insurance??

That's not necessarily accurate. Liability & under/un-insured coverage is the larger portion of my premium, and that really doesn't depend at all on the value of my Model 3. (Which, BTW, is much closer to the $60k than the $35k model.)
The only time vehicle value comes into play is for collision & comprehensive coverage, and even then, it's a fairly small piece of the complex rating.

Umbrella insurance is available via your carrier - just call and ask about it.

Ahh, okay that makes more sense even though I guess people can get screwed over if they lack the liability policy. But even at $2 million what would happen if you hit and total a rare car valued at say $5 million and was found at fault?

So let's break that down ...
- The owner of the $5m car would file a claim under their own insurance.
- Their insurance would then subrogate my insurance.
- The lawyers would kick each other in the shins until they come to a settlement.
- It's possible I could get sued for the balance, but, as it's in their interest to not pay out $2.5m (my policy limit + umbrella) - my insurance company's lawyers would be fighting hard to prove the $5m vehicle isn't really worth $5m at all. Or that it can be repaired for significantly less than that. Or that there's some issue with the title chain... or any one of a million ways to get out of making it the primary carriers' problem.

The likelihood of this scenario is infinitesimally small. My odds of getting struck by lightning, twice, while holding a winning lottery ticket are probably quite a bit greater.

Insurance isn't about "cover all costs" but about risk mitigation. You cover the likely scenarios, and even some of the unlikely ones.

Worst case in the above, I declare bankruptcy, protect my home and retirement assets, and enter a settlement agreement to pay the balance off over the next 216 years, $10 at a time.
 

The_Observer

Member
Feb 14, 2020
693
411
Los Angeles
Absolutely, yes.

What I didn't show is that I also carry an additional $2 million "umbrella" liability policy over all of my insurance. It's very cheap ($125/year or so) but protects one's assets.

If I know correctly, umbrella policies requires rather higher than average coverages on your auto and home insurance (250k/500k auto coverage, etc), is that correct?
 

Dutchie

Active Member
Jun 9, 2013
1,543
3,443
Canada
Insurance isn't about "cover all costs" but about risk mitigation. You cover the likely scenarios, and even some of the unlikely ones.

Worst case in the above, I declare bankruptcy, protect my home and retirement assets, and enter a settlement agreement to pay the balance off over the next 216 years, $10 at a time.

Inssurance isn't about risk mitigation but about asset protection. If you are at fault for driving into a car full of brain surgeon students who where on their way for their, and they get hurt so badly that they cannot work, then you better be insured properly.
No, if you have no assets they cannot take more than what is insured. But if you live in a nice mansion and have a couple of thousand TSLA stock, for instance, they will go after it -- especially if you had the option to get better insurance but decided not to take it. And rightly so in my opinion.
 

LACALawyer

Banned
Nov 22, 2019
293
321
California
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.
I'm in California too and I saved a ****load of money with Tesla ins.
 

acarney

Active Member
Jul 9, 2019
2,438
1,506
Richland, WA
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.

Oops! I don’t know how that got posted! That was a draft I started to write. I was going to finish saying don’t carry full coverage (comprehensive, uninsured, etc) to reduce the cost at the risk of something happening if someone uninsured hit you. BUT then I got to thinking and it probably wouldn’t save that much if the rates are high based on him not having a driving history.
 

trm2

Active Member
Apr 3, 2016
1,050
1,640
CLE
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.

it is possible and completely legal to have a surety bond in lieu of an auto insurance policy. But yes, you do need something.
 

azred

Active Member
Apr 12, 2016
1,877
2,169
Chandler, AZ
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 guess you must not be Puerto Rican because they find prices here to be quite reasonable:

I like to be in America
Okay by me in America
Everything free in America
For a small fee in America
 

Sofos

Member
Jan 18, 2020
49
8
Orange County
Try Wawanesa as well, they are based in San Diego and I use them. They are cheaper than Tesla ins. if you have clean history.

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).
 

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