Over-the-air updates & Insurance

[restyle]

A general question for insurance on cars that have o-t-a updates:-

So you buy the car - get the best insurance quote based on that particular car's spec - sorted!
So then what happens when one day you've have an "over the air update" that's increased the performance by say 10% - Do you now have to inform your insurance company that you're now driving a higher performance vehicle, & possibly be liable to higher premiums?

Not sure what insurance is like in the US, but in the UK, any performance modification to the original insured car must be notified to the insurer - when I put a smaller supercharger pulley on my Cooper S, (which increased its rotation speed & therefore power), my premium went up by around 25% - sure, you could choose not to say anything, but in the event of a serious crash your cover could possibly be voided

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[Crissa]

So then what happens when one day you've have an "over the air update" that's increased the performance by say 10% - Do you now have to inform your insurance company that you're now driving a higher performance vehicle, & possibly be liable to higher premiums?

Depends on your insurance and local laws.

In the US, we usually bake it into the model - so a model known for being hot-rodded is just flat up more expensive to insure, whether or not it has been.

-Crissa

 

[restyle]

So, are you saying the Insurance companies aren't that bothered & dont need to be informed, (although I guess they'll probably get a memo from the manufacturer informing them of that particular models upgrade)
Another question then - So if your saying different states have different motoring bylaws, can it happen that only cars registered in certain states get certain updates in order to comply with local laws?

 

[Crissa]

So, are you saying the Insurance companies aren't that bothered & dont need to be informed,

No, just that if the possibility existed, they would have already been charging you for it, We don't have laws restricting insurers from pricing it too high.

Another question then - So if your saying different states have different motoring bylaws, can it happen that only cars registered in certain states get certain updates in order to comply with local laws?

Yes, different states have different laws. And it hasn't happened yet to over-the-air registered automobiles... But it has happened to scooters which were geofenced to certain top speeds.

California has stricter emissions laws than most states (there are a dozen or more who match theirs to California) so often some models aren't sold or registered in California. And it is illegal to license them elsewhere and house them here, but people have been known to violate the law.

-Crissa

 

[Bigvbear]

here in the states the insurance companies can charge whatever they want. There is little in the way of laws to prevent that.

That being said they look at the vehicle, what it costs to repair and add a certain % to maintain their profits and call it good. They also don't have to keep your rates, they can change them anytime

 

[Crissa]

... They also don't have to keep your rates, they can change them anytime

This is a good point. Most insurance is not term. They will change their terms if they see the conditions changing,

-Crissa

 

[alan auerbach]

here in the states the insurance companies can charge whatever they want. There is little in the way of laws to prevent that.

That being said they look at the vehicle, what it costs to repair and add a certain % to maintain their profits and call it good. They also don't have to keep your rates, they can change them anytime

What it costs to repair? As far as I know, insurance is required only for damage your vehicle causes to others. You don't have to insure it for collision damage, fire, theft, whatever.

 

[firsttruck]

What it costs to repair? As far as I know, insurance is required only for damage your vehicle causes to others. You don't have to insure it for collision damage, fire, theft, whatever.

It is common practice of banks (or other type lenders) that loan money to car buyers that the lenders will require the owners to retain insurance coverage for collision damage, fire, theft, whatever.

 

[Sirfun]

What it costs to repair? As far as I know, insurance is required only for damage your vehicle causes to others. You don't have to insure it for collision damage, fire, theft, whatever.

Lenders require insurance to protect their investment. Here's an example of the requirements they have: https://www.progressive.com/answers/financed-car-insurance-requirements/

 

[Quicksilver]

My insurance company (USAA) bases rates on age, driving record, where you live and drive and how many claims you turn in.
If Tesla can beat their rates (and can sell insurance in AL) I'll go with them.
My only concern is if they use the data they download to determine rates.
I'm a fairly sedate driver but I live out in the county and usually run 10 over the limit.
I also tend to roll stop signs in rural areas.
I would hate to be ratted out by my CT.

 

[FutureBoy]

I would hate to be ratted out by my CT.

If you use the phone app of your insurance carrier, it would not surprise me to find that your phone was ratting you out already. Not sure if Tesla publishes driving data to other insurance companies. Tesla insurance will certainly see it though. Some states prevent Tesla insurance from taking that data directly into account on the rates they charge though.

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