# Model 3 insurance shot way up for 2021 compared to 2020



## pdp1

I'm in Northern California and noticed the 2021 insurance premium for my Model 3, specifically for collision, shot way up by 70% from $680 to $1156. I have AAA and have had no claims or traffic violations in the past year either. Anyone else experience something similar?


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## garsh

What insurance company do you use?


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## Achooo

pdp1 said:


> I'm in Northern California and noticed the 2021 insurance premium for my Model 3, specifically for collision, shot way up by 70% from $680 to $1156. I have AAA and have had no claims or traffic violations in the past year either. Anyone else experience something similar?


I had almost the exact same situation with AAA in 2018 to 2019 with the premium shooting up like crazy. Not sure why they do that. I ended up switching my entire bundle over to Travelers insurance and saved a lot of money for frankly a better product.


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## iChris93

garsh said:


> What insurance company do you use?


I'd guess AAA


pdp1 said:


> I have AAA


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## TomT

I'm with State Farm and mine went down by about 20%...


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## JasonF

In general, you should find new insurance, because when one company nearly doubles the rate, it means either "we don't want to insure Model 3's anymore" or "we don't want to do business in (fill in state) anymore".

For the case of the two people who mentioned it here, it's probably a bit of both. Cars are being broken into in California, and Teslas in particular are being targeted. Maybe some companies decided to get out of California, or at least away from Model 3's in California.

Or it could be less savvy underwriters fearing Autopilot.


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## Garlan Garner

Achooo said:


> I ended up switching my entire bundle over to Travelers insurance and saved a lot of money


Hey......that quote sounds like the commercial. LOL


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## Garlan Garner

TomT said:


> I'm with State Farm and mine went down by about 20%...


Allstate did the same thing.

Even though I drive a Tesla - I was shocked. ( pun intended ).


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## GDN

The cheapest company a large number of people in the DFW area choose for their Tesla is Progressive. Not my favorite company, but I switched both cars over to them. They beat everyone by a few hundred each year. 

I don't have any experience with how they pay and support a claim, but the most reasonable premiums from most companies around. 

However insurance overall is a mess in TX. The owner of the agency I use drives a Tesla and does a lot of research. I've owned my house for over 20 years and I can't find a single company that will bundle home and auto and beat the prices of going with separate companies. I've shopped prices pretty hard each of the last 4 years.


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## JFH

I've bundled home and auto with AAA Texas and am not satisfied with the Model 3 premium. To keep it at $1188 per year, I had to make the deductible $2000. Ridiculous. Their excuse is that Tesla is an expensive car. I wonder how much Tesla insurance is. I think it is only in California, but Elon has moved to Texas, so maybe he can help get it here.


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## garsh

iChris93 said:


> I'd guess AAA


I feel like a newb.
I never realized that AAA offered insurance.

I was wondering why he mentioned that he "had AAA".


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## garsh

GDN said:


> The cheapest company a large number of people in the DFW area choose for their Tesla is Progressive. Not my favorite company, but I switched both cars over to them.


I ended up switching to Progressive a few years back as well.


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## pdp1

Achooo said:


> I had almost the exact same situation with AAA in 2018 to 2019 with the premium shooting up like crazy. Not sure why they do that. I ended up switching my entire bundle over to Travelers insurance and saved a lot of money for frankly a better product.


Funny, mine went down 10% between 2019 to 2020. Maybe it was a mistake and AAA is trying to recoup with the 70% increase! 😁 And just to clarify, the 70% increase was only the collision part of the premium. The total premium "only" went up by 40% or so (still too high)

Anyway... I have both home and auto with AAA and have a multi-policy discount and just paid home a couple months ago, so I'm not sure what will happen if I don't renew auto, but I really want to jump ship now hearing about some of your stories. Thanks everyone!


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## GDN

pdp1 said:


> Funny, mine went down 10% between 2019 to 2020. Maybe it was a mistake and AAA is trying to recoup with the 70% increase! 😁 And just to clarify, the 70% increase was only the collision part of the premium. The total premium "only" went up by 40% or so (still too high)
> 
> Anyway... I have both home and auto with AAA and have a multi-policy discount and just paid home a couple months ago, so I'm not sure what will happen if I don't renew auto, but I really want to jump ship now hearing about some of your stories. Thanks everyone!


Shop them both, the really cool part about insurance policies, at least so far, is that you can start new ones and cancel old ones pretty much anytime without penalty. While I was really set on bundling because of the discounts many seem to offer, I truly found the best deals with 3 separate companies. Progressive with the cars, MetLife for the House and RLI for Umbrella. My house took another jump in December so I need to look around again.


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## Garlan Garner

GDN said:


> The cheapest company a large number of people in the DFW area choose for their Tesla is Progressive. Not my favorite company, but I switched both cars over to them. They beat everyone by a few hundred each year.
> 
> I don't have any experience with how they pay and support a claim, but the most reasonable premiums from most companies around.
> 
> However insurance overall is a mess in TX. The owner of the agency I use drives a Tesla and does a lot of research. I've owned my house for over 20 years and I can't find a single company that will bundle home and auto and beat the prices of going with separate companies. I've shopped prices pretty hard each of the last 4 years.


For me Geico was far cheaper than Allstate.

However I had to go with Allstate because Geico wouldn't cover my Tesla "nor my loan" in the event that it was Totaled. Geico didn't even care what FSD was. Geico totaled my car @ $22k repair costs. I would have lost the value of my FSD and been upside down on my loan. I went with insurance company of the lady who hit me - Allstate. They covered the $32k of my repairs because the value of FSD pushed the value of my car up $10k ( which was the current value of replacing FSD ). Her insurance company also covered my rental for the full duration of the repairs ( 14 weeks ).

Remember: It doesn't take much at all to Total a Tesla if you get it repaired correctly. Its much cheaper to bend a piece of metal back in place if its a smidge out of place....and its much cheaper to replace a part with a 3rd party piece if you can find one. Tesla certified body shops aren't allowed to bend pieces back in place even if its 1 degree out of perfect. All replacement parts MUST be Tesla parts. No glue is allowed when Welding is required. etc.

When you get a Tesla back from a certified body shop.....you get a showroom car back...with no compromise in safety at all. A Tesla certified repair is guaranteed to be returned to you with no compromise in safety - period. That's expensive. That's what caused my repair to be so expensive. It wasn't the cost of the parts.

For example: In my accident the end plate of the frame rail was 0.2% from being perfectly flat. Tesla's rule is that the rear frame rail had to be replaced. Nothing gets "straightened out" because for something to get bent in an accident and then straightened back out compromises safety. The repair technician told me that there would be absolutely no way to recognize that 0.2% bend, however if they left that bend and Tesla found it somehow...they would lose their Tesla Certification and that the certification classes cost hundreds of thousands of dollars.

Anyhoo....that's a major factor that forces many insurance companies to have higher coverage rates for Teslas than any other vehicles. Some insurance companies have done their homework and know how much it costs to get a Tesla back from a Tesla Certified body shop and others don't.


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## Garlan Garner

So.... the lesson I learned from my above post is that:

Cheaper insurance rates aren't always the best. 

I need the best coverage concerning safety and value for my dollar.


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## Madmolecule

Rivian raised the insurance bar. They tout it will be available in 40 states, it will cover off road, it will cover accessory’s like tents and what not and you will get a discount the more you use auto pilot. When I first bought my auto pilot and full self driving I thought it would save me money on insurance. Hopefully that day will come.


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## FRC

Madmolecule said:


> Rivian raised the insurance bar. They tout it will be available in 40 states, it will cover off road, it will cover accessory's like tents and what not and you will get a discount the more you use auto pilot. When I first bought my auto pilot and full self driving I thought it would save me money on insurance. Hopefully that day will come.


Please...Don't...Hold...Your...Breath


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## Dundoleo

Recently took delivery of my 2021 Model 3 in late March. Prior to delivery, Tesla quoted me somewhere over $2k (I still have 2 speeding tickets from 2018). Liberty was 1/2 as much with the same coverage.


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## GDN

I need some new input, open from all, but specifically anyone with Progressive. We've had the cars (2 model 3's - 2018, RWD and an AWD) for 3 years now. They've been consistently $100 month each car. We just got our renewal and they are going up by $25/month each. Total for 6 months from $1200 to $1500. Our miles driven are steady or even less, no accidents or claims. Nothing changed on our end. 

Anyone else care to weigh in on Progressive, have you seen an increase? Or if you still have prices close to or better than that with another carrier I'd be glad to hear them.

Thanks,


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## iChris93

GDN said:


> I need some new input, open from all, but specifically anyone with Progressive. We've had the cars (2 model 3's - 2018, RWD and an AWD) for 3 years now. They've been consistently $100 month each car. We just got our renewal and they are going up by $25/month each. Total for 6 months from $1200 to $1500. Our miles driven are steady or even less, no accidents or claims. Nothing changed on our end.
> 
> Anyone else care to weigh in on Progressive, have you seen an increase? Or if you still have prices close to or better than that with another carrier I'd be glad to hear them.
> 
> Thanks,


I just renewed last month and they went up, but this was my second "contract" with them in NM and the first includes a discount that you don't get going forward. ETA: FWIW, this increase was ~16% @GDN.

I'd expect increases though as the cost of replacement have increased. Not 25% though.


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## garsh

I just switched from Progressive to Erie Insurance. Erie's auto insurance was more expensive, but the entire bundle of Home/Auto/Umbrella was less expensive.


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## shareef777

Insurance never made sense to me. I’ve had Allstate (both home and auto) for almost a decade and my home premiums kept going up even though I’ve never made any claims. Last year I decided to make a claim for a new roof after a bad hail storm. They shot up my home premium further by 50% so I left them for StateFarm. After only one year with StateFarm my home premium shot up as well so switched back to Allstate (who offered me the rates BEFORE they increased my premium).

Seems like your best bet is to keep changing companies to keep them competitive.


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## FRC

shareef777 said:


> Insurance never made sense to me. I've had Allstate (both home and auto) for almost a decade and my home premiums kept going up even though I've never made any claims. Last year I decided to make a claim for a new roof after a bad hail storm. They shot up my home premium further by 50% so I left them for StateFarm. After only one year with StateFarm my home premium shot up as well so switched back to Allstate (who offered me the rates BEFORE they increased my premium).
> 
> Seems like your best bet is to keep changing companies to keep them competitive.


Likely true for almost all on-going service providers.


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## TrevP

I had the same problem in Ontario Canada. My previous insurer was Aviva and my broker called me to say they jacked up the rates 100% and they were going to switch me to CAA which is the equivalent to AAA in the US. Pays to shop around or have a broker looking out for you.


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## JasonF

I noticed this increase a month or so ago with State Farm in Florida. At the time people told me that's what I get for living in Florida, but I guess this is a cross-country thing now.

There doesn't appear to be any reason for the increases besides just opportunism, that because the prices of everything else are going up by 15%-20%, the insurance companies want to get in on it too. I'm afraid this inflation isn't temporary, as much as the politicians claim it is. Inflation is not something that goes away slowly once it becomes widespread.


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## GDN

Thanks for all of the feedback - I guess it is just that time - every few years to just shop around. I currently work with a local Tesla owner/insurance agent but he doesn't have any other company that can beat it, so will start beating down the doors to a few others.


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## iChris93

FRC said:


> Likely true for almost all on-going service providers.


Including your employer.


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## GDN

Changing insurance - State Farm of all places. They note they've redone their insurance and who they insure and adjusted rates. I was with them for years, but left about 15 years ago due to high premiums. I've shopped them multiple times even up to two years ago. Their premiums were 30 to 50% higher than what I had. Then this weekend I ran quotes on home and cars once again. All was just about equal to what I was paying before Progressive wanted to raise my rates by 25%. I went in to an agent and with bundling the cars, house and umbrella I'm saving a few hundred bucks and I've got some increased coverage on the house.

I did agree to one thing I don't like, which is their safe driver discounts and agree to let them monitor your driving. The agent convinced me of how he drives and he still had a score of 81 in their system which still earned him a good discount. 

I guess time will tell and in 2 to 3 years I'll likely be shopping again.


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