So Tesla insurance recently became available in MD and 1 or 2 other states. I’ve had GEICO for the past year or so (car insurance bundled with home, so was receiving a bundle discount). My policy costs $650/6 months, or $105/month for $100k/300k/50k coverage for a '21 Model 3 SR+ and a 2019 Honda Pilot EX-L for me and the wife. I was skeptical that Tesla insurance could beat GECIO’s rates, but receiving a quote was just a few taps away. This is what Tesla insurance quoted me:
I’m still a little dubious about how smoothly a claim would be handled through Tesla insurance (especially for a non-Tesla) but hopefully I won’t have to find out first hand how the claims experience is. I’m also a little wary of giving Uncle Elon all kinds of info by agreeing to allow Tesla to receive oodles of driving telemetry data, but shruggieguy, cheap insurance is cheap insurance. Based on my limited research, seems the claims process is decent and most of the issues are due to parts shortages, which would be encountered regardless of what insurance provider you have.
The $74 quote (assuming $42 for the 3, $32 for the Pilot) is based on a 90 safety score. If I can keep my score 95+, looks like I can chop my premium another 20-25%.
Also interesting is that adding my wife did not increase my premiums a single cent! I’ve heard of other people adding their kids to their Tesla insurance policy with 0 added premiums either. If I can add my kids to my policy for $0 extra cost, it’s a no-brainer to keep with Tesla insurance!
Reading over the fine print, I do see that Tesla insurance is Actual Cash Value (ACV) versus replacement cost. That may not be an issue right now, as resale values for used Teslas seem to be at least as much as new prices (well, except for maybe Plaids now) but that could change down the road. That is probably 1 factor in the cheaper premiums. Though TBH, I’m not sure if my GEICO policy was ACV or replacement cost.
So Tesla Insurance provides coverage for non-Tesla vehicles? Interesting…
The fact that premiums are also based on your driving score is a good thing/bad thing IMHO. You could game the system, if you knew how to. Though it looks like if your driving score is <90, your premiums can go up very quickly.
As An insurance broker I have read a lot on Tesla’s insurance. I have had a few people leave for the price and come back after a few months. I truly think that this will not last long at the current rates. Insurance companies are really getting hit hard right now (showing with most increasing premiums quickly). Tesla is not rating for youthful drivers and prior accidents- the 2 most risk based factors).
The main complaint I do hear is that rates change monthly based on your driving score with the Tesla’s insured. Every beep the car gives (to close to a lane line, not slowing down fast enough, hard acceleration and braking etc) will lower the score. This will increase the rates for the following month.
I saw someone post an example of how their driving score went from the mid-90’s to 88 one month, and their premiums nearly doubled from the previous month!
I am wondering if there might be some bait and switch play in the making (offer very cheap initial premiums to new customers, then jack the rates up after the first 6 months). But Tesla needs to give you 45 days notice of any rate increase (you can see the next 2 months of projected premiums appear in the app) so you’ll have time to shop around if you see Tesla is about to jack up your premiums to the moon.
Yeah, that’s the biggest problem I think - how unpredictable the monthly costs will be.
Sometimes it’s not in your control and you have no recourse with Tesla Insurance (as with everything else Tesla related ). Also, once you leave your previous insurance carrier, you’ll lose a boatload of discounts that you had and may not get back if you switch back.
All car insurance policies are ACV, unless you have a classic or exotic car with agreed value. You’re not getting anyone to offer that on a regular car. One exception is that many companies offer some form of “new car replacement” that will pay replacement cost or +1 model year or something similar for new cars for first 1-2 years.
If you have umbrella coverage, make sure you are aware of any implications of having auto insurance somewhere else.
Also, insurance isn’t something I buy solely based on how little it costs. I presume there are additional compelling reasons you went in this direction.
Beyond coverage thresholds, claims experience is basically the entire product you are buying.
For comparison I quoted myself (not sure why I have not before). Going with maximum limits really changes the rate a lot. As @trism mentioned if you carry an umbrella you will need to find a stand alone product (they exist, but are not as readily available as a package from a good carrier). When I look at the annual cost of my policy vs the monthly cost of Tesla I would save $214 a year (based on the score of 90 I currently have). Not worth giving up a known carrier with a good record of claims handling (accident forgiveness, new value pay out for 2 years, and all of the other nice perks I have).
If I had younger drivers or some accidents that would be rated it may be a different story.
Glad I checked it out- but no way I would move into it at this point. At some point down the road when OEM’s start selling your data to insurance companies and everyone is scored on every drive it might be worth looking at it again. I am hoping this is a long way away.
Although it may be an older topic, I believe that knowing how to calculate prices is crucial information.
There is an update regarding the calculation of the Tesla Safety Score and its impact on auto insurance prices. Although the calculation formula is not public, it is confirmed that the Safety Score is a personalized rating that affects insurance premiums. Tesla Insurance encourages safe driving by offering lower premiums to drivers with higher scores.
Although getting a perfect 100 on the Tesla safety score may not be possible due to differences in driving conditions and human behavior, you can still achieve a high safety score by consistently practicing safe driving habits. The table on above page outlines how you can aim for a safety score approaching 100 by focusing on the four main factors.
). Also, once you leave your previous insurance carrier, you’ll lose a boatload of discounts that you had and may not get back if you switch back.