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Tesla Insurance - Good Plan?

ricinro

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my wife and I discussed this and wasn't too impressed "doesn't Flo already do that?" I guess Progressive insurance has some device that monitors driving habits. So I tried to explain that Tesla can collect so much data etc. and she asked me if I ever drove the speed limit on our freeways...silence...Then I countered that maybe the CT would just count how many cars I pass because the flow of traffic on our freeways is typically 15mph faster than posted unless traffic is heavy.
So I guess it depends on what Tesla considers safe driving.
 

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You raise a major and evolving issue, Rich.

Of course insurers want to charge on the basis of risk -- that's the basis of the industry. But how do you measure risk usefully and acceptably?

Personal characteristics are tricky. They can charge young males more than females because that's pretty obvious. But if they knew that drivers with a certain, say, eye color or educational level were more likely to cost them big, and charged accordingly, they don't want to hear the public screaming "all eyes/grades matter." Age is troublesome, because older drivers have fewer claims, but any injuries can be more costly. Also, some jurisdictions require a safety audit of drivers older than, for instance, 80.

They use driving records., so lack of experience, prior claims, and conviction record will raise the rate.

Insurers also use kind of vehicle (some are more likely to get into trouble, or cost more to repair), address (more claims come from some locations than others), and of course type of use (like using the vehicle for work, or even driving to work). Car color is ignored -- although some data suggest that the less the conspicuity, the more the claims. (The color at the top of the conspicuity list is a fluorescent yellowish lime green -- which some emergency vehicles are being switched to from the traditional red.)

The newest criterion, provided through modern electronics, is your own, as-it-happens driving pattern. The common standard is a device that (with permission) reports to the insurer things like positive and negative acceleration, distance driven, and what time of day driving occurs. (Insurers don't like their cars driven 1:00-to-3:00 am.) Not perfect but a promising start. And that's where Tesla shines -- because it can gather more data and analyze the output to see what driving patterns predict claim filing. Skilled, careful drivers might want that, and those who see it as intrusive don't have to buy Tesla coverage.

And besides the above variables, another is what kind of client type an insurer might want to specialize in. If the decision-maker, for whatever reason, says, "We should attract policy-holders who are married and have between two and four kids, and not childless applicants", rates for those demographics could drop or increase. And all the above is individual for each company -- so you should shop around.
 
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Owner13669

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Tesla is already collectiNg the data, so I don’t thing having their insurance exposes you to increased privacy risk. I could be wrong.
 

alan auerbach

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Tesla is already collectiNg the data, so I don’t thing having their insurance exposes you to increased privacy risk. I could be wrong.
Right, Steven, but when it comes to privacy "intrusions," don't underestimate the prevalence of paranoia.
 

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This is an interesting conundrum. You are REQUIRED to have Insurance to drive. Like anything in life, prices are based on what people will pay. The insurance companies want as much money as they can charge, and we try to reduce costs as much as possible.
I foresee standard insurance companies freaking out at the risks of insuring a $70,000 truck/tank with acceleration of 0-60 in 2.9. regardless of your age and record their gonna charge you an arm and leg. Now Tesla is saying we can charge you less money because we understand some people are buying this vehicle for the range and Not performance. Tesla feels they can find a balance of risk vs. price based on they will have access to all available information. How you drive, who else drives your car, how much you have FSD driving, where it's driven, what times it's driven, How many miles it's driven, even where it's parked, everything! Then when there is a claim they have access to all those camera's that capture what happened and HOW it happened. Not only are they looking at what you did, but also I would imagine they would be able to use that information to show other insurer's that the accident is not your fault. So with all that, Tesla feels like they could sell you insurance that would be REFLECTIVE of who you are and what their risks are. With Tesla making some profit.
I will shop around and see what costs are, and if Tesla starts off for less I will go with Tesla insurance. In the instance of driving beyond the speed limit on the highway. I would imagine they would have tons of information from ALL their vehicles and probably have average speeds of any portion of road anywhere. They would probably compare your speeds with average speeds and not posted speeds. So in essence, I know my driving habits and I have nothing to fear.
 

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This is an interesting conundrum. You are REQUIRED to have Insurance to drive. Like anything in life, prices are based on what people will pay. The insurance companies want as much money as they can charge, and we try to reduce costs as much as possible.
I foresee standard insurance companies freaking out at the risks of insuring a $70,000 truck/tank with acceleration of 0-60 in 2.9. regardless of your age and record their gonna charge you an arm and leg. Now Tesla is saying we can charge you less money because we understand some people are buying this vehicle for the range and Not performance. Tesla feels they can find a balance of risk vs. price based on they will have access to all available information. How you drive, who else drives your car, how much you have FSD driving, where it's driven, what times it's driven, How many miles it's driven, even where it's parked, everything! Then when there is a claim they have access to all those camera's that capture what happened and HOW it happened. Not only are they looking at what you did, but also I would imagine they would be able to use that information to show other insurer's that the accident is not your fault. So with all that, Tesla feels like they could sell you insurance that would be REFLECTIVE of who you are and what their risks are. With Tesla making some profit.
I will shop around and see what costs are, and if Tesla starts off for less I will go with Tesla insurance. In the instance of driving beyond the speed limit on the highway. I would imagine they would have tons of information from ALL their vehicles and probably have average speeds of any portion of road anywhere. They would probably compare your speeds with average speeds and not posted speeds. So in essence, I know my driving habits and I have nothing to fear.
"You are REQUIRED to have Insurance to drive." Gotta say yes and no to that. (And add generally, because I don't know every jurisdiction's requirements.)

Some minimum amount for liability, yes. But you can decline all other coverage they try to sell you, such as collision and comprehensive.
 
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I understand that by tracking our driving, Tesla will have the information to tailor fit insurance pricing for us, and possibly give us a good rate. I mean, at least until they have a monopoly.

But in collecting all of our data, be it from Google, Facebook, Apple, etc. When is it too much? It already seems that if I mention a product in passing conversation, example "we should get your Mom some flowers", the next thing I know, flower ads are popping up in all my media and devices. We also already know that these companies are manipulating and steering us in the direction that suits them best or what info they want us to see. Including political leanings.

Now we are giving our cars this same ability. What happens when Tesla (maybe they will change the name to Cyberdyne Systems) becomes self aware? Think about these stainless steel tanks that now have the ability to drive themselves..... Hey, Elon is already working on Neural Nets installed in our brains.

Don't get me wrong, I love the technology. I have the assistant devices in my house and use them all. And the connectivity, constant updates, and FSD are some of the huge factors that make me want a CT.

But somewhere deep in the back of my mind, I wonder, where is this all going?
 

ricinro

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I would be open to a quote based on data collected for a month or so. But I am also interested in their algorithms for what is a safe driver. My experience is that a driver who goes along with the average speed of traffic will generate less road rage and lane changes. However that average speed is typically greater than posted speed.
I recently watched a video of a M3 on self driving and the behavior of the vehicle was irking other drivers (the model 3 driver was assuming they were angered). It wont take long for other drivers to figure out how to bully FSD if Teslas don't match the aggressive reality of real world motoring in urban areas.
 

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alan auerbach

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I think this is a good direction, why should I pay the insurance premiums for my fellow males that likes to drive aggressively and I don’t.
If you drive a Tesla, it collects driving info anyway, so if your pattern is what they consider low risk, you might as well benefit from that. (If you're bothered by "personal" information being collected by your car, don't drive any recent one, especially a Tesla.)
 

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This has turned into a privacy discussion, rather than a quality of insurance plan.

My worry is not privacy, but that they will use the information to deny claims after an accident. If you are doing 80 in a 65 zone (normal freeway traffic in Southern California) will the insurers say "our policy clearly stipulates the policy is void if you are driving recklessly" and so not pay up?
 

alan auerbach

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This has turned into a privacy discussion, rather than a quality of insurance plan.

My worry is not privacy, but that they will use the information to deny claims after an accident. If you are doing 80 in a 65 zone (normal freeway traffic in Southern California) will the insurers say "our policy clearly stipulates the policy is void if you are driving recklessly" and so not pay up?
Absolutely yes -- if your policy (which you presumably have a copy of) clearly stipulates it's void if, in the insurer's opinion based on the "black box," you were driving recklessly.
 

Texas_Cybertrucker

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In a crazy world, maybe like a warning meter gage on the dash that will show how much your insurance rates will rise if you keep on speeding and don't slow down. Maybe even an option to purchase high rate insurance time slots... like it will charge you $20/min to go ahead and speed temporarily. If you see real time how much it adds to your insurance bill, i'm sure most people will think twice about going too fast or reacting to road rage.
Tesla will probably provide discount insurance rates if you use Autopilot/FSD more.
 

MUSK007

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It’s is absolutely a privacy issue. Beyond that Tesla Insurance is only in California right now, and it’s not a good option for many reasons.
 

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