A guide to Tesla insurance by Daigle & Travers, Darien, Connecticut (203) 655-6974
According to the Highway Loss Data Institute, insurance premiums for Tesla owners could potentially go up 30 percent. This is because drivers of Teslas have submitted 46 percent more claims on average than vehicles of the same class. Insurance claims for Teslas also typically cost twice as much as an average automobile insurance claim.
Overall, Teslas crash often and 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.
Costs of Insuring your Tesla
The average annual minimum cost for insuring a Tesla Model S is $2,691, while the average minimum cost for a Tesla Model X is $2,784. This cost depends on the type of coverage you have, as well as where you are located.
For drivers in a big city, you can expect to spend at least $2,000 each year to insure your Tesla. However, if you live in a smaller city or town, you are likely not going to have to pay as much.
Also, you can expect to pay even more if you have a history of car accidents.
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.
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.
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.
Collision and Comprehensive Coverage
If you are the owner of a Tesla, it is a good idea to purchase additional collision and comprehensive insurance coverage. This will run you about $1,000 to $2,000 annually. However, if you get into an accident and do not have this coverage, you might be forced to spend thousands of dollars out-of-pocket to get your vehicle repaired.
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.
You may also be able to save money on your automobile insurance through rebates and tax incentives. All states offer up to $7,500 in tax breaks to drivers of electric cars.
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 Tesla 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.
• Be sure to 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.
Check to see if your agent has commitments to car clubs or manufacturers.
Would you settle for less?
If you find your current insurance agent is unable to offer you an acceptable insurance policy for your Tesla, it’s time to find a new agent.
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.