Tesla Insurance Guide

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by Daigle & Travers, Darien, Connecticut (203) 655-6974

According to the Highway Loss Data Institute, insurance premiums for Tesla owners could potentially go up by approximately 30 percent or more. 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

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 may not have to pay quite 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, which generally represents the value of your vehicle taking into consideration its condition and also factoring in depreciation. 

Stated Value

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

A stated amount policy means that the insurer will pay the lower amount of either repair costs, the stated policy amount, or the vehicle’s actual cash value. 

Agreed Value

This is usually the best policy to have. 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 an accurate value for your Tesla 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 usually run you about $1,000 to $2,000 annually, although the exact amount may be lower or higher than those figures depending on a variety of factors. 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 eligible for several different discounts. 

First, Teslas are semi-autonomous vehicles. Some insurance companies may offer discount programs for owners of semi-autonomous vehicles. 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. As of the writing of this article, the federal government and many states are offering attractive tax incentives related to the purchase of certain new electric vehicles. 

Other Important Information to Remember

  • When you discover an insurance program offering agreed value terms for physical damage coverage, compare it with the cost of insuring your Tesla vehicle.
  • Not all insurance programs will allow you to insure custom items that you have added to your Tesla.
  • Different physical damage deductibles are usually available. The higher your deductible, the lower your premium generally is.
  • Be sure to read your application and policy 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. 
  • It is helpful if your insurance agent has 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 coverage for your Tesla and will recommend policies from insurance companies. Give us a call today to learn more about Tesla insurance cost at (203) 655-6974.