How do I best insure my Tesla?

In past few years, Tesla has expanded the models they offer, Model X, Model S and most recently the Tesla Model 3.

Insurance premiums for Tesla owners could potentially go up 30 percent with standard insurance carriers. One of the reasons for this is insurance claims for Teslas typically cost twice as much as an average automobile insurance claim.

Overall, Teslas cost more to repair than vehicles of the same class. The type of class a vehicle is placed into depends on the size, weight and competing models of the specific automobile. In the case of the Tesla Model S and Model X, these include the Audi a6, Mercedes Benz E-class, BMW 5-series and the Volvo XC70.

Tesla in Connecticut and New York

In CT and NY, there are limited certified Tesla repair shops.  This in conjunction with no aftermarket parts means that the cost repair a Tesla is more expensive than their non-electric counterparts.

Though there are limited repair shops, Tesla is well represented locally. Here are a few of their locations:

Tesla Westport CT COMING SOON!
176 Post Rd W
Westport, CT 06880

Tesla Greenwich Avenue
340 Greenwich Avenue
Greenwich, CT  06830

Tesla – The Westchester
125 Westchester Ave
White Plains, NY 10601

Tesla Manhasset-Americana
2122 Northern Blvd
Manhasset, NY  11030

Tesla Brooklyn-Van Brunt Street
160 Van Brunt St
Brooklyn, NY  11231

Tesla Meatpacking District
860 Washington St
New York, NY  10014

We have good news for you…

Daigle & Travers’s in house research has found that insurance carriers such as Chubb, Cincinnati, AIG and Pure Insurance tend to offer more competitive rates over Geico, Liberty Mutual or State Farm. One of the reasons for this is: our higher end insurance carriers are accustomed to working with clients that usually drive more expensive vehicles.

How much does it cost to insure my Tesla?

We wish we had a definitive answer for you, but there are so many factors that come into play such as, driver history, credit score and the garaging location. The best way to find out how much it would be to insurance your Tesla would be to give us a call.

What should I be looking for in coverage for my Tesla?

Most insurance carriers offer one of three types of coverage: Actual Cash Value, Stated Value or Agreed Value. If you own a Tesla, make sure you go with Stated Value or Agreed Value.

Actual Cash Value

Most standard automobile policies typically provide an actual cash value coverage. This means that when you get into an accident, your insurer will decide the worth of your Tesla as well as the final claims settlement amount.

If you do not agree with your insurer’s valuation of your car after an accident, your only option may be to seek legal action or arbitration under this type of policy.

Stated Value

The true meaning of stated value is often misinterpreted by insurers and policyholders. Many insurance agencies use stated value and agreed value interchangeably. However, this usage is not correct.

Stated amount means that the insurer will pay the lower amount of either repair costs, the stated policy amount, or the vehicle’s actual cash value. For these policies, stated amount will only pay the amount put forth, or the actual cash value, whichever costs less.

Agreed Value

This is the best policy to have, and it means that when you get into an accident in your Tesla, an insurance policy with agreed value will cover the loss up to the agreed amount stated in your policy.

These policies do not have actual cash value stated anywhere in the coverage. However, you will want to verify that your insurer uses the actual Tesla value when they issue the policy. Also, if that value changes at any time, you want to have the option to change the agreed-upon value as well.

Discounts on Tesla Insurance

Although the cost of Tesla insurance claims may rise, owners of Tesla Model 3 and Model S cars may be entitled to several different discounts, and Tesla is working with several insurance companies to ensure this.

First, Teslas are semi-autonomous vehicles. This means that they should be safer to drive, and thus owners of these vehicles might be entitled to decreased rates of their insurance. Teslas are also electric and many insurance companies offer discounts to drivers of eco-friendly vehicles.

Other Important Information to Remember

• When you discover a program offering agreed value terms for physical damage coverage, compare it with the cost of insuring your vehicle.
• Not all programs will allow you to insure custom items that you have added to your Tesla.
• Different physical damage deductibles are available. The higher your deductible, the lower your premium.
• Read your application carefully.
• Asking your agent about policy restrictions and warranties beforehand will help you find a program suitable for your needs.
• Be sure to get an agreed amount Tesla insurance policy through a respectable insurance broker who is familiar with the automobile business. This will ensure that you do not have to lose sleep on the settlement of future claims.
• Your agent should be in a good relationship with insurance company underwriters.
• Only a few agents will claim to have authority to assist insurance company settlement claims swiftly for your benefit. The best insurers are actively involved in the automobile industry.

Would you settle for less?

If you find your current insurance agent is unable to offer you an acceptable insurance policy, it’s time to find a new agent.  Make sure that your agent understands how to insure electric cars and specifically higher value vehicles.

Read over your policy very carefully. Spend time comparing all aspects and not just the prices. Make sure it suits your needs and will help you find the coverage that works best for your specific situation.

Here at Daigle & Travers, we can help you find the right coverage for your Tesla and will recommend policies from only the best insurance companies. Give us a call today to learn more about Tesla insurance cost at (203) 655-6974.  We have three convenient location in Connecticut, Wilton, Darien and Westport.