Is Tesla Auto Insurance Good?

Is Tesla Auto Insurance Good?

The MarketWatch Guides team rated Tesla’s self-sold insurance at 7.7 out of 10.

Citing limited availability nationwide, low customer satisfaction scores, and reputation issues.

Tesla’s insurance model, focused on digital channels, might not suit those who prefer personalized service.

While current Tesla owners may find it appealing, it’s probably not the top choice for most other drivers.

An image illustration of Tesla Insurance
Tesla Insurance
Source: (Freepik)

Tesla Insurance Services

It was founded in 2017 and has garnered numerous consumer complaints filed with the Department of Insurance.

Currently appointed with only two insurance companies, it appears Tesla Insurance may not offer anything unique compared to local insurance providers.

When purchasing insurance from non-insurance entities like Tesla, it’s crucial to consider who the insurance truly protects.

As manufacturers increasingly integrate insurance into their offerings, questions arise about whether such insurance fully safeguards consumers in cases of product malfunction and resulting injuries.

Tesla Car Insurance Coverage

Tesla Insurance offers standard coverage options typical of most auto insurers.

These include bodily injury liability, property damage liability, personal injury protection (PIP), medical payments (MedPay), and uninsured/underinsured motorist coverage.

Customers can choose between minimum coverage or more extensive protection for their Tesla vehicle.

Tesla’s full-coverage options include collision, comprehensive insurance, and state-required liability coverage.

Collision coverage handles damages from accidents, while comprehensive covers non-accident-related damages like theft or vandalism.

Tesla also offers extra coverage like glass protection, roadside assistance, rental car reimbursement, and gap insurance.

Although details on these programs may not be readily available online.

Why is Tesla Insurance costly?

Tesla tailors rates based on driving habits through real-time monitoring called the “safety score,” which rewards good habits but penalizes bad ones.

Unlike most providers, Tesla doesn’t consider age, gender, credit score, or marital status.

Instead, rates are influenced by factors like the Tesla model, location, miles driven, chosen deductible, coverage level, and safety score.

Which includes components like forward collision warnings and aggressive driving behaviors.

Monthly premiums can fluctuate, especially with Tesla Insurance.

An image illustration if  Tesla Insurance is Good
Is Tesla Insurance Good
Source: (Freepik)

Conclusion

Whether Tesla’s auto insurance is considered “good” depends on various factors such as individual driving habits, geographical location, and personal preferences.

Tesla’s telematics-based insurance program, which rewards safe driving, may appeal to some drivers and could lead to cost savings for Tesla vehicle owners.

However, limited availability in only 11 states and reports of subpar customer service may deter potential customers.

Ultimately, determining the quality of Tesla auto insurance requires careful consideration of one’s specific needs and circumstances.

ALSO READ: Will Auto Insurance Cover Pre-existing Damage?

 

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