As a Tesla owner, I was eager to change the insurance on my Model X to Tesla's own insurance plan. After all, it made sense for the manufacturer of my vehicle to also be the insurance since such synergy and vertical integration bring efficiencies of scale and insights into my vehicle that other insurers do not have. So I decided to request a price from Tesla, which any Tesla owner may do by going into their account on the Tesla internet portal.
The Tesla Insurance Quote
To my astonishment, the quotation I received was 30% more than what I was been paying to Progressive insurance (managed via Cappuccino Insurance Agency) for coverage on my Model X. I've censored some personal information, but you can get a basic sense of how much Tesla wants me to pay each month to enjoy the privilege of being covered by Tesla Insurance. At a 30% premium over what I am now paying, I consider Tesla Insurance to be a luxury and an option over my existing carrier, rather than a necessity. Here's what I've been paying Progressive for coverage on my Tesla Model X for the last year.
My Progressive Insurance Premium
The aforementioned estimate does not include a $1.76 'Anti-Fraud Fee,' which brings my yearly vehicle insurance premium with Progressive Insurance to a staggering $1197.76...the pain!! I'll point out that my existing vehicle insurance policy excludes medical payments and uninsured motorist property damage, but Tesla's insurance quotation includes medical payments and uninsured motorist property damage for $1000 and $3500, respectively.
My current Progressive insurance also does not include Roadside Assistance. When you sum up the three shortcomings in my present insurance coverage, it comes to a total of $4500 in additional coverage.
However, this does not justify a 30% increase in my insurance rate because, when comparing 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 compensates for the $4500 not covered by my current insurance plan.
When I divide my annual payment of $1197.76 into 12 months (since most individuals pay their insurance on a monthly billing schedule), it comes out to a monthly cost of $99.83 for a vehicle that costs around $100,000. That strikes me as pretty modest and reasonable for a car of that kind.
Perhaps the alleged Tesla Markdown/Discount that car insurance companies provide Tesla vehicle customers is at work to my advantage. The reasoning behind the markdown/discount is based on the reality and industry-wide understanding that Tesla automobiles are far safer than other vehicles on the road.
When you consider 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 worldwide, it's easy to see why Tesla owners pose a much lower insurance risk for auto insurance companies.
So, without further ado, here's a comparison of the nuts and bolts of my existing insurance carrier, Progressive, and what Tesla Insurance is giving for the same amount of coverage.
In full openness, as previously said, my vehicle insurance is managed through Cappuccino Insurance Agency. So I'm not sure if it'll be the same quotation as someone who went straight to Progressive. However, I believe that having someone manage your vehicle insurance and being able to speak with them personally is far superior to dealing with a faceless bureaucracy that assigns you to a random agent every time you call for assistance.
Having my vehicle insurance via an Insurance agent like Cappuccino Insurance Agency helps to lessen the worry and anxiety that comes with dealing with any type of insurance company.
So, for the time being, I will continue with my present vehicle insurance provider unless Tesla can match my current rates while simultaneously providing the personalization that comes with having your own independent agent-managed auto insurance.