February 4th, 2020 by Johnna Crider
Electrade, a website that helps Tesla owners and other EV owners regarding insurance, put together a review of Tesla’s in-house insurance and compared it to three competitors. In the review of Tesla Insurance, the company quickly highlights the pros and cons of Tesla Insurance. Among other things, Electrade found out that the Tesla Model 3 costs less to insure than a BMW i3.
Pros of Tesla Insurance
One of the pros is that Tesla knows its cars, putting the company in a better position to repair and provide better services at its service centers. Thanks to Tesla’s data gathering, it can provide better coverage after an accident. Additionally, it can constantly and quickly improve its pricing in response to new data. Electrade calls it the “Silicon Valley-style strategy of launch fast and continuously improve,” which we have seen with Tesla as it continues to grow.
Cons of Tesla Insurance
Among the cons that Electrade lists, a key one is simply geographic availability — it’s only available in California at the moment. Hopefully, by the time I get my Cybertruck, Tesla Insurance will be available in Louisiana. (Hint, hint, Elon! We are waiting!) The other cons are more speculative than anything else, and are vague. For example, one of the “cons” on Electrade’s list is that you might have higher premiums in the future if you don’t use Autopilot often or didn’t purchase FSD. It’s unclear when or how Tesla can modify rates based on those factors (there may be legal/regulatory issues with anything regarding driver use of the tech), but even if it can at some point in the future, that doesn’t necessarily mean high rates for Tesla drivers — just lower rates for drivers that have and use those features.
Next-Gen Insurance Competitors
The next-gen competition that Electrade reviewed were Metromile Insurance, Root Insurance, and Clearcover Insurance. Metromile Insurance is a pay-per-mile type of insurance that seems to be great for those who don’t drive that often. Root Insurance focuses on creating rates around your driving style and is available in 30 states. Clearcover Insurance, only available in a few states, focuses on affordable online insurance by using AI to help make the process simple.
Buyer’s Guide for Tesla Insurance
Electrade points out that it is really easy to purchase a lot of EV coverage that you may not need. The advice here is to find the best pricing for your money and to include new players such as Root and Clearcover when you are looking at estimates. They also advise you to decide your budget and consider the deductible that you are prepared to pay.
Regarding Tesla Insurance, Electrade says to make sure you fully understand what is covered, such as Traffic-Aware Cruise Control and Autopilot, and to make sure you are insured if accidents happen when these are enabled.
They also list some questions that you should consider when purchasing not just Tesla insurance, but any type of insurance, such as what would happen if someone stole your Tesla. Another pair of questions was: “If Sentry Mode and live cam footage prove it to be the other person’s fault, will you be totally covered? What if you’re at fault?”
There’s a lot to think about. Check out the full article for many more considerations.
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