Is Tesla Insurance really cheaper and better than other options?
How does it compare to the best car insurance companies in the market?
In this article, we will try to answer these questions by looking at the availability, coverage, cost, and customer service of Tesla Insurance.
Tesla Insurance claims to provide comprehensive coverage and claim management at a lower cost than traditional insurance carriers.
For which Tesla owners, Tesla Insurance is cheaper?
Tesla insurance is the real deal!!!!
by u/TLAlwaysRead in TeslaLounge
Tesla Insurance is cheaper for drivers who own newer or more expensive Tesla models, such as the Model S or Model X.
This is because Tesla Insurance claims to have a better understanding of the repair costs and risks associated with these models, compared to other insurance providers.
For example, one customer said that they saved $600/year by switching to Tesla Insurance for their Model S.
Tesla Insurance can be cheaper for some Tesla owners, especially those who drive safely and use the telematics program that tracks their real-time driving behavior.
The telematics program assigns a safety score to each driver, based on factors such as speed, braking, acceleration, and turning.
The higher the safety score, the lower the insurance rate. According to some sources, Tesla Insurance can offer up to 30% savings for drivers with a high safety score.
For which people Tesla Insurance is expensive or who should not buy Tesla Insurance?
Tesla Insurance can be expensive or unsuitable for some people, such as:
#1. Drivers who live in states where Tesla Insurance is not available
Tesla Insurance is currently only available in California, and only for Model S, Model X, Model 3, Model Y, and Roadster owners.
Tesla plans to expand its insurance service to other states in the future, but there is no clear timeline for that. Therefore, drivers who live in other states or own other Tesla models will not be able to use Tesla Insurance.
#2. Drivers who have non-Tesla vehicles
Tesla Insurance also allows customers to add their non-Tesla vehicles to their policy, but the rates may be higher than for Tesla vehicles.
This is because Tesla Insurance does not have access to the data and telematics of non-Tesla vehicles, and therefore cannot offer lower rates based on driving behavior.
For example, one customer said that they paid $2,400/year for their non-Tesla vehicle with Tesla Insurance, compared to $1,200/year with Geico.
#3. Drivers who want more coverage options and discounts
Tesla Insurance may not offer the same level of coverage options and discounts as other insurance providers, such as roadside assistance, gap insurance, or multi-policy discounts.
Customers who want more flexibility and customization in their insurance policy may find Tesla Insurance lacking in these aspects.
For example, one customer said that they were disappointed that Tesla Insurance did not offer gap insurance, which covers the difference between the market value and the loan amount of a vehicle in case of a total loss.
#4. Drivers who value customer service
Some customers have complained about the quality of customer service from Tesla Insurance, such as long wait times, lack of communication, and difficulty in reaching an agent.
This can affect the satisfaction and claim experience of customers who need help or have issues with their policy. For example, one customer said that they waited for over an hour on hold to speak to an agent about their claim.
Is Tesla Insurance really cheaper and better than other options?
Tesla Insurance offers insurance premiums that are 20% to 30% lower than those of other insurance providers.
The typical yearly premium for all new Tesla models stands at $2,030, marking a remarkable 49% reduction compared to the industry average.
Tesla determines its insurance rates through their proprietary “Safety Score,” disregarding any traffic tickets on record. Enrolling multiple vehicles with Tesla Insurance can earn you a 12% discount on your premium.
We have answered these questions by looking at the availability, coverage, cost, and customer service of Tesla Insurance.
#1. Availability
Tesla Insurance is currently available in 11 states: Arizona, California, Colorado, Illinois, Maryland, Nevada, Ohio, Oregon, Texas, Utah and Virginia.
Tesla plans to expand its insurance product to more states in the future. However, for drivers who live in other states or countries, Tesla Insurance is not an option.
#2. Coverage
Tesla Insurance offers the same types of coverage as most car insurance companies, such as liability, collision, comprehensive, medical payments, personal injury protection, and uninsured/underinsured motorists.
Tesla Insurance also offers some additional benefits for Tesla owners, such as:
1. New car replacement
If your Tesla vehicle is totaled within the first year or 15,000 miles of ownership, Tesla Insurance will replace it with a new one of the same make and model.
2. Wall connector coverage
If your wall connector (the device that charges your Tesla at home) is damaged or stolen, Tesla Insurance will cover up to $1,500 of the cost to repair or replace it.
3. Electronic key replacement
If your electronic key (the device that unlocks and starts your Tesla) is lost or stolen, Tesla Insurance will cover up to $500 of the cost to replace it.
4. Identity fraud expense
If your identity is stolen as a result of a covered loss, Tesla Insurance will cover up to $5,000 of the expenses related to restoring your identity.
Tesla Insurance also offers a unique feature called Safety Score Beta, which uses real-time driving behavior data from your Tesla vehicle to calculate your premium.
This feature is available in all states except California.
Safety Score Beta tracks your driving behavior using five metrics: forward collision warnings per 1,000 miles, hard braking events per 1,000 miles, aggressive turning events per 1,000 miles, unsafe following time per 1,000 miles, and forced autopilot disengagements per 1,000 miles.
The higher your score (out of 100), the lower your premium. You can monitor and review your daily driving behavior with Trip View in the Tesla app to learn how to improve your score.
#3. Cost
The cost of Tesla Insurance depends on many factors, such as your vehicle model, location, driving history and safety score.
According to Tesla’s website, the average cost of Tesla Insurance for a Model 3 in Texas is $65 per month or $780 per year.
However, this is just an estimate and may not reflect the actual rates for individual drivers.
To compare the cost of Tesla Insurance with other car insurance companies, we used data from ValuePenguin, which collected quotes for a 30-year-old male driver with a clean driving record and full coverage for a 2020 Tesla Model 3 in Texas. Here are the results:
| Company | Average Annual Rate |
|---|---|
| Tesla | $2,030 |
| State Farm | $2,626 |
| GEICO | $3,198 |
| Allstate | $4,038 |
| Progressive | $4,230 |
As you can see from the table above, Tesla Insurance has the cheapest rate among the five companies. However, this may not be the case for every driver or every state.
For example, according to NerdWallet, GEICO has the cheapest rate for a Model 3 in California ($1,974 per year), while Progressive has the cheapest rate for a Model X in Florida ($2,814 per year).
Therefore, it is always advisable to compare quotes from multiple companies before choosing a car insurance policy.
#4. Customer Service
Tesla Insurance claims to provide convenient and easy access to purchase and manage your policy, monitor your safety score, and submit claims through the Tesla app.
However, according to customer reviews on sites like Trustpilot and Reddit, many drivers have experienced problems with Tesla Insurance’s customer service.
Some of the common complaints include:
1. Long wait times on the phone or online chat
2. Difficulty in reaching a representative or getting a response
3. Lack of communication or follow-up on claims or policy changes
4. Errors or delays in billing or payment processing
5. Inconsistent or inaccurate information or quotes
These issues may indicate that Tesla Insurance is still new and has not yet established a reliable and efficient customer service system.
Therefore, drivers who value customer service and satisfaction may want to consider other car insurance companies with better ratings and reviews.
How to decide whether Tesla Insurance is right for you?
The decision to choose Tesla Insurance depends on your individual needs and preferences. Here are some questions you can ask yourself to help you decide:
#1. How safe do you drive?
If you drive safely and have a high safety score, you may be able to save money with Tesla Insurance. However, if you drive recklessly or have a low safety score, you may end up paying more with Tesla Insurance.
#2. What model of Tesla do you own?
If you own a newer or more expensive Tesla model, such as the Model S or Model X, you may benefit from lower rates and better coverage with Tesla Insurance.
However, if you own an older or cheaper Tesla model, such as the Model 3 or Model Y, you may not see much difference with Tesla Insurance.
#3. Do you have non-Tesla vehicles?
If you have non-Tesla vehicles in your household, you may want to consider other insurance providers that can offer lower rates and better coverage for them.
However, if you only have Tesla vehicles in your household, you may enjoy the convenience of having all your vehicles insured by one provider.
#4. What coverage options and discounts do you want?
If you want more coverage options and discounts, such as roadside assistance, gap insurance, or multi-policy discounts, you may want to look for other insurance providers that can offer them.
However, if you are satisfied with the basic coverage and no discounts offered by Tesla Insurance, you may not mind the lack of these features.
#5. How important is customer service to you?
If you value customer service and want to have a smooth and hassle-free claim experience, you may want to avoid Tesla Insurance and choose a provider that has a good reputation and rating for customer service.
However, if you are willing to tolerate some delays and inconveniences in exchange for lower rates and better coverage, you may not mind the poor customer service from Tesla Insurance.
How to compare quotes from different providers?
Before you decide on Tesla Insurance, it is advisable to compare quotes from different providers to find the best rates and coverage for your Tesla model.
You can use online tools such as Compare.com or ValuePenguin to find the best rates and coverage for your Tesla model.
These tools allow you to enter your personal and vehicle information, and get quotes from multiple providers in minutes. You can also filter and sort the quotes by price, coverage, rating, and more.
You can also read customer reviews and ratings from sites such as Trustpilot or Consumer Affairs to learn about the quality of service and claims handling from different providers.
These sites allow you to see the feedback from real customers who have used the providers, and learn about their experiences, satisfaction, and complaints.
You can also write your own review and share your opinion with other customers.
Limitations
Tesla Insurance has some limitations that may affect your decision to choose it as your car insurance provider. Some of the limitations are:
1. Tesla Insurance is only available in 11 states, so drivers in other states or countries cannot use it.
2. Tesla Insurance does not offer any discounts, such as multi-policy, multi-vehicle, good driver, good student, or military discounts, that are common among other car insurance companies.
3. Tesla Insurance does not cover any modifications or customizations to your Tesla vehicle, such as aftermarket parts or accessories, unless they are approved by Tesla.
4. Tesla Insurance does not cover any damage or loss caused by cyberattacks, such as hacking or ransomware, to your Tesla vehicle or its software or data.
5. Tesla Insurance does not cover any damage or loss caused by the use of Autopilot, Full Self-Driving or other driver assistance features unless they are proven to be faulty or defective.
Conclusion
Tesla Insurance is a car insurance product that may offer some advantages for Tesla owners, such as lower rates, new car replacement, wall connector coverage, and safety score beta.
However, Tesla Insurance also has some disadvantages, such as limited availability, lack of discounts, poor customer service, and exclusions for modifications and cyberattacks.
Therefore, drivers who are interested in Tesla Insurance should compare it with other car insurance options and weigh the pros and cons before making a decision.
