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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. :-)

Anonymous Hero | 28 april 2019

I shopped around and found that the most reasonable quote by far came from Root Car Insurance, at $354 per 6 months. I was already a happy Root customer for a year with my previous car and was very happy to see that they believe Tesla cars are safer and less prone to problems, and therefore are cheaper to insure.

Tesla Model 3 Long-Range Dual Motor (2018)
Location: Texas
Collision - $1000 deductible
Comprehensive - $1000 deductible
Bodily Injury - $250k/$500k
Property Damage - $100k

Total cost - $354 per 6 months

https://rootbonus.com/TerenceChiu

Full disclosure: This is a referral link. You and I both get $25 if you sign up. But I stand by my recommendation even if there's no financial incentive. Root seems like a innovative insurance company that is mobile-first, no-frills and affordable. And they love Tesla customers.