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Insurance rates seem very high!

Insurance rates seem very high!

With all the anti-collision and safety features, including sentry mode, automatic braking you'd think the insurance rates would be lower. Kind of shocking, anyone else puzzled? Any actuarials out there to explain? Are they that hard to repair?

M3BlueGeorgia | 16 April, 2019

You need to shop around.

Allstate was my insurance provider for many years, but their price to insurance the Model 3 was ridiculous.

I ended up with Travelers, and paying for the Model 3 only a little more than I was paying for the 2008 Honda Accord it replaced.

cpeppey | 16 April, 2019

M3BlueGeorgia thanks. I'll try travelers. Funny thing is, I also upgraded to a M3 from a 2008 Accord. (secretly miss that comfy seat, but nothing else)

rhj | 16 April, 2019

Currently with travelers and my quote from a 2009 to a 2019 was a few hundred higher then a regular new car

mcmack15 | 16 April, 2019

They are crazy expensive to repair---little fender benders run into thousands. Not sure what is happening with other makes and models, but I do recall 2-3 years ago the owner of a very reputable, local repair shop telling me prices were going to skyrocket for simple repairs in fender benders, and of course insurance costs would follow. The new headlights are much more expensive than in years past, and with all the sensors in the bumpers nowadays............

gmr6415 | 16 April, 2019

USAA charges me $5 per month more than my 2003 Honda Civic Hybrid was and that included adding accident forgiveness and full car replacement. It's half the cost of my wife's 2010 Prius, which doesn't have accident forgiveness or full car replacement, which would be a waste on a 9-year-old car anyway.

Kary993 | 16 April, 2019

Yes I am with Travelers as well.

fazman | 16 April, 2019

Under $700 for 6 months for a 2018 P3D+
500/500/500 limits
$1k deductable collision
$0 deductable comp
full value replacement with 2019
100/300 uninsured motorist with $0 deductable

Do you think I could do better?

coleAK | 16 April, 2019

USAA doubled from our 2004 MB e 4matic to the model 3LR AWD. We are about as low risk as possible from an insurance standpoont. As mcmack said, it’s high repair costs.

apodbdrs | 16 April, 2019

It is new car, it is still difficult to get parts and there are very few TESLA certified body repair shops therefore very expensive to repair what appears to be simple dent. Insurance companies are certainly taking advantage to make as much money as they can pending real data being collected. In the long run, TESLA will prove to be a very safe car and insurance rates should come down compare to other vehicles.

Neomaxizoomdweebie | 16 April, 2019

I’m with USAA and my rate hardly changed from a BMW 328i. Went from $411 to $475 for a MR. not sure why the big difference for you. I haven’t had a ticket since 2000. Not bragging, just offering a data point.

geoffdorn | 16 April, 2019

I'm an agent and there are a couple things going on that increase premium on the 3. First as mentioned above a simple fender bender means that a camera and sensor may be damaged vs a plastic bumper of an older vehicle. The second part is that there is not enough data to come up with a good history to base pricing off of so the cost new is the main influence currently. Third if we all drive as I imagine we all drive there are going to be more claims as a group. As more claims history comes in prices will change for better or worse. Hopefully the safety features will help.
Now let me lastly say that car insurance is a pile of money that you are buying from the company and if someone has 500k in liability coverage and someone else has 25k that these are different, so if you are going to quote the price you are paying then quote the coverage too.
Other things to ask your agent are... is my glass roof covered with my zero deductible windshield coverage option that I purchased? If your insurance offers new replacement cost for the first years as mine does, ask if they are also going to cover the AP that you paid for. Lastly pay for the vehicle rental coverage because we all know the repair parts are not just sitting on the shelf.

Bighorn | 16 April, 2019

300 bucks for 6 months with a low deductible is a bargain.

woster402 | 16 April, 2019

Yep, $300 is a bargain. Mine is currently roughly $450 a month through USAA. Didn’t think that was too bad of a price as it was only 200 more expensive then my 2003 Wrangler I was driving full time.

Neomaxizoomdweebie | 16 April, 2019

In light of what geoffdorn said above I could have just said that all things being equal, my rate went up by 15.5% from covering a 2012 BMW to covering a new Tesla.

Kataniki | 16 April, 2019

USAA member here, went up $71 for a 6 month premium from my 2005 Prius. $404 for 6 months including full replacement, rental car, max on everything with $500 deductible for MR. Also kept the roadside assistance as it is more comprehensive than Tesla's.

kenduong03 | 16 April, 2019

@fazman,

wth, those are high ass coverages, all that for 1400 a year. that's pretty awesome.

-TheJohn- | 16 April, 2019

Man some of you are getting ripped off or are really young and/or have crap records.
50 years old here and $81 a month with State Farm for utterly total coverage including glass etc on our LR RWD.
We do have two houses and another car with them as well. Perhaps that explains it?

coleAK | 16 April, 2019

Sorry should have been more clear above. Our rate doubled but we kept the MB. So it almost doubled but we added another car. I thought that was reasonable considering our MB is only worth ~$6k

JayKay3 | 16 April, 2019

As someone else said, many factors figure into an auto premium, including individual discounts which offset the risks inherent to the overall model's safety stats. My premium actually went down for my last six-month policy renewal. My State Farm 'Drive Safe and Save' program discount (which is new to me this time) helped to reduce my premium. But, we shall see what happens as the insurance companies analyze safety stats for the M3. Hoping folks aren't becoming Mario Andretti-types out there, although I must admit I have never experienced the acceleration that I have now with the M3. Having said that, I am still a safe driver.

TexasBob | 16 April, 2019

FWIW we switched from Chubb to Pure. Big drop in rates. Both very good premium insurance carriers.

PittCaleb | 17 April, 2019

I currently drive a leased Outback that
s under 3 years old. My Model 3 rates at USAA are within $50/yr. So it's kinda apples-to-apples and exactly the same. Are you coming from a 15 year old beater with no collision to a brand new $50k sports car (i.e. power package)?

gmr6415 | 17 April, 2019

@geoffdorn, you forgot that insurance prices also vary greatly by state. When we moved from No VA in 2002 to Florida USAA doubled our insurance rates for the exact same vehicles and coverage. When we checked around they were still the least expensive in FL. A lot depends on state insurance laws as well is what is referred to around here as Q-tip or knuckle drivers.

Q-tips are the elderly (I'm getting there myself) where all you can see behind the wheel is the "white" backside of the driver's head. Knuckles are where you don't even see the Q-tip. All you see is their knuckles on the steering wheel. It all gets down to risk. AAA doubled my mother's rates when she turned 80. She had never had a ticket or an accident in her entire driving history. When I called AAA to inquire why they said statistically she was due.

RedPillSucks | 17 April, 2019

Insurance is about the same as my 2013 Toyota Camry Hybrid LE.

P49X | 17 April, 2019

Comparing premiums is only half the story. Claims service is equally important.

wiscy67 | 17 April, 2019

We have USAA and also noticed the new M3 SR+ has much higher premiums than our other cars - about $2100/yr vs $1000/yr for each of our other cars. Same 100/500 deductibles, 300k/500k coverage. The bulk of the difference is in the collision coverage. I noticed when we did the quote estimator before we bought the car that USAA doesn't care if the car is a performance version or standard. It's the same high cost to insure.

wiscy67 | 17 April, 2019

I got a quote from Ameriprise based on the recommendations here and it was double USAA rate. I notice that when I remove my local college student (less than 100 miles away) as a driver the cost is more than halved. Hmmm... Lots of variables that go into the equation.

johnw | 17 April, 2019

My insurance increased $10/month from my G35. I was shocked and very happy. Am Fam

Mikael13 | 17 April, 2019

$20 more than my former 2011 BMW 335i..

I have GEICO
45 yrs old/ Northern California
$500 for 6 months
2018 M3 LR AWD, Blue, 19”, AP
100k per person / 300k per occurence
$500 deductible
No tickets/accidents (knock on wood)

.... “15 minutes could save you 15% or more on car insurance” ;-)

crmedved | 17 April, 2019

Man, some of you have great rates. I tried USAA and they were pretty expensive. I used to have Progressive for like $750/6 mo... they wouldn't transfer my 16% snapshot discount from my old car so I bailed to Root for ~$650.

Root Insurance
28 years old, Delaware
No tickets or accidents, ever.
$650 for 6 months
2018 M3 LR AWD, Blue, 18", EAP
100/300/100 bodily & property liability ($192)
100/300 PIP ($25)
$30/day rental ($35)
100k $0 deductible uninsured property ($18)
$500 comprehensive ($100)
$1000 collision ($285)

$0 glass repair not an option in my state.

Mikael13 | 17 April, 2019

I always suggest shopping around every 6 months. There is no more loyalty from these insurance companies (not sure about USAA though). Age matters too for some carriers. Add zip code/regions, demographics and probability of accidents, etc. It’s all a part of the pricing generated by the insurance carriers and their actuaries.

One thing to note though - don’t buy cut rate insurance. Although they may be cheaper, in the event of a claim, you might get screwed. Stick with reputable companies even at a (marginal) cost you can afford. It’ll give you peace of mind. :-)

kpmkrishnan | 17 August, 2019

M3BlueGeorgia & cpeppey - You saved my day. I got a ridiculous quote from Geico that will erase any savings that i would ever make with an electric car. Travellers got it right. I am thinking all these insurance / oil & the old laggard Auto companies are a nexus and are trying to prevent people from adopting electric vehicles. I hope some Tech company comes in and gets all these dinosaours out of business.. Travellers - you are my new favorite and i am switching my home insurance regardless of how much you quote

MacGuffin | 19 August, 2019

What shenanigans these insurance companies are pulling -- it's INSANE!... After being with Geico for 27 years -- during which I don't think there was any year that my insurance didn't go DOWN after an additional year of ownership of the same vehicle due to its depreciation -- they just informed me they are raising my rate by FORTY PERCENT!! (From $125 to $175.)

This wasn't completely unexpected, due to other threads I saw recently that mentioned Geico was jacking their rates for Teslas -- but then when I tried all the recommended alternatives, those quotes somehow came back as even MORE!... Costco/Ameriprise was $195, Travelers was $220, and Metromile wanted more than that without even driving a single mile!...

How can that possibly be? These companies are clearly colluding on pricing... Say Elon, where's Tesla's promised insurance company? Please save us from this bludgeoning! :-( Almost all my gas savings per year just got eaten up by this ridiculous insurance Tesla tax. Crikey.

bjrosen | 19 August, 2019

Allstate charged me $57 more than for my three year old Volt, seems quite reasonable to me.

lbowroom | 19 August, 2019

No increase from State Farm this year. Don't know how real this thread really is though with a meaningless title. throw the word seem into a sentence and it becomes meaningless. No numbers quoted. Just fishing for stories about high insurance costs

MacGuffin | 23 August, 2019

@lbowroom -- I don't get it, I supplied very specific numbers in my post? This is *very* real -- I have now gotten 7 different quotes for my insurance renewal, and they range from 40% more all the way up to 380% more for the exact same coverage!! :-(

daddy88 | 23 August, 2019

@MacGuffin - I believe you. The rates vary from state to state of a given insurance company. I had NJM jacked up insurance on renewal (then I switched to Geico, and first 6 months renewal the rate hasn't changed).

Perhaps Tesla insurance can start at states where insurance is high. (or work towards making the car less costlier to repair or less rear window break-in)

MacGuffin | 29 August, 2019

@daddy88 -- I think Elon listened to you! I signed up for the new Tesla Insurance yesterday since they beat Geico by 19% as advertised, going from $174 to $146. It's totally ridiculous that Geico jacked my rate 40% after being their customer for 28 years, with zero accidents -- I had been perfectly happy with Geico, and now they lost a loyal customer for absolutely no reason... Hopefully Tesla can profit off the apparent greed of these insurance companies who are jacking up all the Tesla rates!

MacGuffin | 29 August, 2019

CAVEAT EMPTOR about the Tesla Insurance. I signed up yesterday and now totally regret it and there is NO WAY TO CANCEL IT! Their phone line goes to a recording that says they are not taking calls and hangs up on you! And the “manage policy” link on my Tesla account goes to an error page with an animated Starman Tesla orbiting the moon. WHO THE HELL DOES BUSINESS LIKE THIS?!?! Well Tesla, that’s who.

I now need to report them to the California Insurance Commissioner, because I am trapped in a Kafka-esque nightmare! :-(

Tesla will take your money and give you ZERO customer service. Do yourself a favor and RUN DON’T WALK away from this “discount” — the 19% savings I was supposedly going to receive is not worth the hassle!

Bighorn | 29 August, 2019

That’s a lot of drama in a handful of hours.

airpor41 | 30 August, 2019

Mine lowered by about $10 per month going from 2018 Golf R to Model 3.

bcmusik | 30 August, 2019

Mine is $2050 per year with Liberty. Tesla just quoted $1475. This is much more reasonable. This is a no brainer.