what are your thoughts on insurance costs

[crazybarracuda]

I figured i would do a poll asking what everyone felt the insurance premiums would be compared to a similarly priced ICE car. If you had an insurance company run the numbers for a model 3 vs a car of the same price/options do you think premiums will be higher, lower, or the same. i know the prices of insurance on an S or X are sometime substantially higher since not every company has a history on repair/replacement costs for Tesla cars in general.

 

[bradbissell]

Based on my experience with my LEAF in Massachusetts, the insurance rates will be higher than a comparable ICE.

 

[182RG]

Relatively few repair shops, high cost of OEM replacement parts and no third party parts. Unknown impact of autopilot stigma. Cost will be higher.

 

[MSullivan]

Compared to my Volt, my 75D cost increase was less than the dollar value would indicate it should have.
I have Progressive.

 

[MSullivan]

Relatively few repair shops, high cost of OEM replacement parts and no third party parts. Unknown impact of autopilot stigma. Cost will be higher.

Insurance doesn't charge based on stigma, they have actuaries that use raw numbers, not fear.

 

[EaglesPDX]

The autobraking systems such as Autopilot significantly cut auto accidents which is why the insurance industry owned and operated Insurance Institute for Highway Safety champions these safety systems.

That should result in lower insurance costs. Hard to judge by TS and TX insurance rates as those are $100K cars which are going to have high prices for parts and repair.

 

[ucmndd]

The lack of third party repair options will factor heavily in premium cost, IMO.

 

[2018 Steve]

My State Farm agent said that I would be surprised at the lower cost of a Model 3 (compared to ICE cars of same value). Yes, I hope I am surprised at the lower cost!! I will not be surprised at a higher cost.

 

[WileyTheMan]

Highly rated crash rating and safety features should help keep the insurance costs down on the M3, at least comparable to other cars in its class. But beware of the performance versions. They are not blind to Ludicrous mode. Repair facilities won't be a big factor in that I think, but I really don't know.

 

[Lukas99]

Quick question... Do you insure Teslas against theft as well? I wonder, whether all electric car that is virtually non stop online, could be stolen potentially? Where I come from theft insurance is a major part of the amount... Insuring against accidents and natural hazzards like storms, ice etc could be much cheaper where I come from... Can you actually steal a Tesla? )))

 

[Trips]

This thread has a poll on it but is basically a dupe of Model 3 & Auto Insurance.

 

[S'toon]

My insurer posts their base rates online. I looked it up. The Model S base rate is the same for my current much cheaper car. I think they give a lot of credit for the S being an incredibly safe car. If the 3 has the same safety, I think my insurance rates could drop given that it's a smaller car. <shrug> I don't know. I'm guessing.

 

[wilheldp]

Here's a recent data point for you:
2008 Nissan Altima 2.5SL (~$28k car, new) = $574 every 6 months
2016 Tesla Model S60D (~$78k car) = $598 every 6 months

So the Tesla increased my premium $4/month or $48/year.

 

[22522]

Around 40% of property damage accidents involve parking.

Connected and automated parking solutions by Bosch

Tesla ought to be able to solve those.

Insurance should be lower.

Some wishful thinking as I am still trying to figure out how to make the numbers work!

 

[wbrumfiel]

I have an '11 Infiniti G37x and inquired about replacing it with a 2013 or 2014 model S and my agent said it was like $6/month more. Granted I didn't give him a VIN or anything but I don't think it will be a big increase.

 

[vitz]

I wrote to my insurer (here in the UK) to find out what they policy was with regards to Tesla, the Model 3 and especially Autopilot safety features. They were tight lipped on all fronts. They haven't decided between the various insurers how to deal with it, potentially it could be disastrous for their business model as there would be fewer accidents (as Autopilot has categorically prevented accidents).

All the insurance companies have met and will continue to discuss the impact of emerging technology and agree how to charge premiums (I'm not sure how this is different from price fixing in an open market)

I just hope that as early adopters, we don't get charged through the nose for premiums because they are scared of losing business.

 

[Booga]

Insurance doesn't charge based on stigma, they have actuaries that use raw numbers, not fear.

Except to the extent that there is something that is inherently uncertain. They don't have data on it and given that it's constantly adapting, historical data may be limited in value. We hope it's better obviously, but the moving variable may be how much and under what situations it gets enabled.

Generally speaking, you're right, but it truly does vary. There are times in the industry that standard auto insurers have walked away with 15%+ margins and times today where companies lose money (even after investment income) on the same policies.

Anyway, point is that it might vary.

 

[Booga]

I wrote to my insurer (here in the UK) to find out what they policy was with regards to Tesla, the Model 3 and especially Autopilot safety features. They were tight lipped on all fronts. They haven't decided between the various insurers how to deal with it, potentially it could be disastrous for their business model as there would be fewer accidents (as Autopilot has categorically prevented accidents).

All the insurance companies have met and will continue to discuss the impact of emerging technology and agree how to charge premiums (I'm not sure how this is different from price fixing in an open market)

I just hope that as early adopters, we don't get charged through the nose for premiums because they are scared of losing business.

There are many factors, but so far while yes accidents are down, the cost (severity of an accident) is up for these cars. (Note: I'm only referring to cars with these advanced technologies like collision mitigation braking) this does not lend them to a big net impact on pricing.

If we end up with less frequency of accidents and less severity over time, then yes, premiums will fall. Companies cannot put off technological shifts forever and competition means they can't just get together and outlaw lower prices for this segment. I can talk more about why (I work in insurance), but don't want to bore everyone

 

[eisbock]

Here's a recent data point for you:
2008 Nissan Altima 2.5SL (~$28k car, new) = $574 every 6 months
2016 Tesla Model S60D (~$78k car) = $598 every 6 months

So the Tesla increased my premium $4/month or $48/year.

Wow, not too shabby. Is the premium on the Altima now? Or when you bought the car? If it's now, then it's insane that a car worth maybe 8-10k has nearly the same premium as a $70-80k car.

 

[dorcse]

I have a 2014 and a 2015 Volt with full coverage in Massachusetts (high liability, collision ($300 deductible) and comprehensive (a/k/a fire & theft, vandalism) with $0 deductible. Cost to insure both cars: $2247 total yearly premium.

I was shocked when I checked with Liberty Mutual for a quote on a 2016 P90D to replace the 2015 Volt with same coverages. The total yearly premium would actually go DOWN by $170. I have not had them quote based on a 90D, but I assume that might even be less to insure than the P90D.

Go figure