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Tesla also records and knows everything the driver does, and everything happening in the car. That could work for or against the insured.

 

When you say everything....

 

The model 3 does have an inward facing camera built into the rear view mirror so it can monitor driver feedback, eyes not facing the road, head tilting down, all to assist with driver alertness.

Elon Musk's Tesla Model 3 has a secret camera installed | Daily Mail Online

So YES ... EVERYTHING going on in the car.




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On the one hand, it sounds like a good idea if the insurance company is incorrectly or unfairly categorizing the cost of insuring a Tesla.

But on the other hand, what if AAA is right and Tesla's do cost more to insure? Tesla will be forced to deny coverage to high risk customers in order to keep premiums low for everyone else. I would have no problem with this until I get incorrectly or worse correctly categorized as high risk.

So I'm ambivalent about this. I need a third party to state with facts whether Tesla's are expensive to insure.

 

AAA, from my perspective, IS a third party.

I've read a few different articles that indicated Teslas cost more when they get in an accident because they only have one authorized source of parts for repairs (Tesla) instead of the numerous part manufacturers who make components for other automakers.

 

Isn't that the way it is when all new body components & frame configurations start?
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If we think about autonomous vehicles level 3 (tesla is at level 2 right now) there are 2 ways to go. You can do as tesla does now, which is check for hands on the wheel. Or you can do what gm does in its new super cruise, which is watch the driver and see if the eyes are on the road. Tesla has not implemented this yet, but its likely the way to go, and hardware is there ready for them to implement if its the better way.

But tesla's camera is not the same as gm's, it looks at the whole interior, not just the driver. Why is this? Well tesla has the other business model up its sleeve if we get to autonomous vehicle level 4 or 5, there may be a network to car share, and have the car move from the location to the driver requesting the car. In this case if the car goes only where its system works, the new driver/passengers may end up in the back seat, or not paying attention at all, but you want a record of what they do in case they vandalize the car.

Countries need to step up their regulation for autonomous driving and privacy. IMHO even at tesla's current level, the car is much safer, but there are privacy concerns. Will tesla share data with the police in the case of speeding or running red lights or stop signs? (IMHO they should not, and the government should not compell them). Will tesla share the data in the case of accidents (IMHO they should, and if you are buying a tesla you should be man or woman enough to accept responsibility if you caused an accident). Remember insurance is there to pay even if you are at fault. Insurance companies don't seem to want to give bonuses for technologically safer cars, so this is a good business for tesla to partner into. If you don't want data shared if you are at fault in accidents, you are free to buy insurance for more money from someone else.

One major cost of repairs is the parts, and these come from OEMs and junk yards mainly, but also third parties. The oem parts have large mark ups (profit margins). If tesla insurance partnership works with shops in a network, it can probably justify lower margins on parts, and lower costs of repairs (since its on both the end of supplying and paying for the parts).

 

Yes, but third party suppliers see more incentive to make parts for a Camry versus a 7 Series because of the volume in potential demand. If their part isn't much less than the manufacturer because there isn't many cars on the road to prop up demand, most will likely choose the manufacturer part.

There is also the fact that it costs more to repair aluminum, and high strength steel, sheet metal than plain old steel. Few body shops actually have the equipment to fix aluminum because of the investment cost and the numbers of cars that use it. Off the top of my head, Teslas, Range Rovers(maybe Land Rovers), and the BMW i's are the only current cars using it structurally.

 

Several weeks ago now the BBC reported increased insurance repair costs on UK vehicles and the primary reason was attributed to the higher cost of replacement technology systems and components which are used more often now in newer cars etc. I'll have a dig around and see if I can find details to cite.

 

Tesla, like any number of other entities is partnering with Liberty insurance. I suspect Tesla is being paid for the referral when a driver buys the policy.

Call Liberty for a quote and ask about discounts. You may be surprised how many are offered. The only way I see Tesla owners getting lower rates through this program is if Liberty is screwing down Tesla's reimbursement rates. If so, Tesla may have found another way to lose money if they have to repair a car through an insurance claim.

 

Most folk that are able to afford new vehicles costing >$30K & on into 6 figures, find it financially advantageous to bundle their insurance - fire, flood, earthquake, wind damage, business, life, auto(s) umbrella policies, Med, long term elder care, etc. The more and more you buy, the cheaper they make the whole package. Pull out just one type of ins. & the economic bundle quickly comes tumbling down. For those that bundle, you have to move the entire shebang. That's much easier to say than do. The reason being, that 20 year life insurance policy that you bought at age 38, you're going to pay outrageous rates 18 or 19 years later. Nice idea that the op posted but it's going to be a minority that find switching to be a bargain imo.
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