As a Tesla owner, I was chomping at the bit to switch the insurance on my Model X over to Tesla’s own insurance product. After all, it made sense that the maker of my vehicle also be the insurer because with such synergy and vertical integration come efficiencies of scale and insights into my vehicle that other Insurers simply access to. So I decided to get a quote from Tesla which any Tesla owner can conveniently do by logging into their account on the Tesla website portal.
As you can see to my surprise, the quote I received came in at a whopping 30% more than what I am currently paying to Progressive insurance (administered through Cappuccino Insurance Agency) for coverage on my Model X. I have redacted some personal information but you can get the general idea of what Tesla want’s me to pony up each month for the luxury of being insured by Tesla Insurance. At a 30% premium over what I am currently paying, I do consider it a luxury and a choice to go with Tesla Insurance over my current provider and not a need. Here’s what I have been paying for the last year with Progressive for coverage on my Tesla Model X.
There is a $1.76 ‘Anti-Fraud Fee’ that is not shown on the above quote which sadly increases my annual auto insurance payment with Progressive Insurance to a whopping $1197.76…the agony!! I will point out that my current auto insurance coverage does not cover medical payments and uninsured motorist property damage whereas Tesla’s Insurance quote does cover medical payments and Uninsured Motorist Property Damage to the tune of $1000 and $3500 respectively. My current insurance with Progressive also doesn’t cover Roadside Assistance. When you look at those 3 deficiencies of my current Insurance coverage as a whole, it comes out to a total of $4500 is additional coverage. However, that still does not justify a 30% auto increase in my insurance rate because when you compare my Uninsured Motorist limit of $50,000 per person to Tesla Insurance’s limit of $30,000 per person, you can see that I have a $20,000 buffer to work with which more than makes up for the $4500 not provided for in my current insurance plan.
When you break my annual payment of $1197.76 up into 12 months (as most people pay my insurance on a monthly billing schedule), it comes out to a monthly cost of $99.83 for a vehicle that costs about $100,000. Now that strikes me as quite low and reasonable for vehicle of that much value. Perhaps it’s the rumored Tesla Markdown/Discount that auto insurance companies offer to owners of Tesla vehicles at work here in my favor. The idea behind that markdown/discount is based on the fact and industry-wide knowledge that Tesla vehicles are a lot safer than other vehicles on the road. When you take into consideration Tesla’s extensive safety features, best in class safety records and awards, and autopilot system which uses AI and data from over a billion miles driven on autopilot by Tesla owners around the world, you begin to understand why Tesla owners generally pose a much lower insurance risk for auto Insurance companies. So without further ado, here’s a side-by-side comparison of the nuts and bolts between my current insurance provider – Progressive, and what Tesla Insurance is offering for the same level of coverage. The comparison was made using an awesome tool called Comparisonapp.
Full disclosure, as I mentioned above, my auto insurance is administered through Cappuccino Insurance Agency. So I’m not sure if it’s going to be the same quote as someone who just went directly to Progressive. However I do think having someone manage your auto insurance and you can talk to them directly is far better than dealing with a faceless bureaucracy that offers up a random agent every time you call for help. Having my auto insurance through an Insurance agent like Cappuccino Insurance Agency helps to reduce the stress and anxiety that usually comes with dealing with Insurance companies of any kind. So for now, I will be sticking with my auto insurance provider unless Tesla can beat what I currently pay for my auto insurance and also offer up the personalization that comes with having your own independent agent administered auto insurance.
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