Insurance for the Signature Model X

volkerbradley · Oct 2, 2015

What kind of insurance would you buy for a new Tesla? I am concerned that if someone should total my car within a few months of purchase, then I might be faced with a huge financial loss. Insurance policies generally only replace the market value of the car at the time of the accident.
What do you think of policies that will replace the entire purchase price of the car if the car is totalled within the year that it was purchased? Have you had any experience with such policies?

aggie · Oct 2, 2015

Gap insurance/protection. Ask your auto insurer to include it.

volkerbradley · Oct 2, 2015

Thank you

loganthefirst · Oct 2, 2015

As an insurance broker in Colorado, make absolute sure you have glass coverage as well...that panoramic windshield is going to be EXPENSIVE to replace.

jbobmurph · Oct 4, 2015

This wouldn't really be gap insurance; this would be "new car replacement" coverage.

They're similar, but there's a bit of a difference.

"New car replacement" is just that - pays for you to replace your vehicle (usually within the first year or two) with a new vehicle, rather than paying you the value of an at least partially-depreciated vehicle.

"Gap" insurance covers you if you're "upside down" in your loan. For instance, if you got a lender that loaned you the full $140k to buy your Model X, but it had depreciated 25% on drive off and you got in a wreck a week later, you'd still owe $140k, but you'd only get a payout from your insurer of $85k. That's a problem.

Now note, for the first year or so, this problem won't actually exist for a Model X - hell, you'd want to get market value, as I'd imagine "market value" of a Model X until Tesla works through the backlog will actually be higher than the cost of buying new. Good luck getting your insurer to pay that out, of course.

MikeInFL · Oct 5, 2015

My insurance company informed me that I have to have a separate policy for the windshield on Model X. They stated that it is no longer covered under comprehensive due to it's rather large size.

And before you get bent out of shape over my nonsense comment I'm only kidding.

dwebb66 · Oct 5, 2015

MikeInFL said:
My insurance company informed me that I have to have a separate policy for the windshield on Model X. They stated that it is no longer covered under comprehensive due to it's rather large size.

Which insurance company do you use?

rakeshtx · Oct 5, 2015

Yep I have the same question. Which insurance company? I've been curious about the cost of replacing that windshield! It's one of the several things holding me back from configuring by Model X signature.

gizmoboy · Oct 5, 2015

rakeshtx said:
Yep I have the same question. Which insurance company? I've been curious about the cost of replacing that windshield! It's one of the several things holding me back from configuring by Model X signature.

Did Mike add the second line of his post after the fact or something?

SebastianR · Oct 5, 2015

gizmoboy said:
Did Mike add the second line of his post after the fact or something?

People don't read. ;-)

Back on topic: I think it is outrageous of insurance companies to not cover the windshield! I already called mine and told them off for not covering it!
On the other hand, I really hate Tesla had to come up with this useless gimmick - who builds the largest windshield anyways?!? Why come up with a novelty thingy that will just cost customers needless money!!

(Just kidding, just kidding... Guys - the Model X forum really needs to get a grip lately! The kinds of discussions here are partly beyond silly!)

MikeInFL · Oct 6, 2015

gizmoboy said:
Did Mike add the second line of his post after the fact or something?

Nope, part of the original post. Anyone have any insurance updates?

JimVandegriff · Oct 7, 2015

I just checked with my agent's office - they gave me a quote, and I inquired about "new car replacement coverage." It is not offered by my insurance company, but I just saw a Liberty Mutual ad on tv which touted new car replacement coverage in a good ad. A paraphrase: "What are you going to do with 3/4's of a car?"

volkerbradley · Oct 13, 2015

Exactly. I want to make sure that the insurance I buy will replace the car if needed. Can you imagine a loss of $33,000 on a Signature Model X in case of severe accident during the first year?

andrewket · Oct 13, 2015

I have Allstate with full replacement coverage. It's available during the first two years of ownership.

BinWing · Dec 24, 2015

What is the rate? My allstate has the highest rate (I have multiple cars and houses with them for more than 18 years) so far. So, new car coverage is some special item?

ptsagcy · Dec 24, 2015

jbobmurph said:
This wouldn't really be gap insurance; this would be "new car replacement" coverage.

They're similar, but there's a bit of a difference.

"New car replacement" is just that - pays for you to replace your vehicle (usually within the first year or two) with a new vehicle, rather than paying you the value of an at least partially-depreciated vehicle.

"Gap" insurance covers you if you're "upside down" in your loan. For instance, if you got a lender that loaned you the full $140k to buy your Model X, but it had depreciated 25% on drive off and you got in a wreck a week later, you'd still owe $140k, but you'd only get a payout from your insurer of $85k. That's a problem.
.

jbobmurph has correctly explained gap insurance, but it is generally provided under the lease or by the lender, not as part of the insurance policy. I have emailed TM for confirmation that their lease includes GAP insurance.

*** UPDATE *** I just heard back from Tesla, with a specimen copy of the lease, and they definitely do include Gap Protection in their leases.

DJ Frustration · Dec 28, 2015

Would love a list of insurance companies who people have been able to get respectable quotes for the Sig X from. My first request using our VIN came back with no quote since they "didn't have the vehicle model in their system."

andrewket · Dec 28, 2015

Allstate and Pure didn't have a problem quoting and were reasonable.

Chickenlittle · Dec 28, 2015

andrewket said:
Allstate and Pure didn't have a problem quoting and were reasonable.

Watch out with Allstate. Daughter had accident other driver had Allstate as well. Other driver ticketed for running red light and had t boned her. Allstate determined other driver 100% at fault. So far everything good but then they valued the car. They used comp value cars that were far away, one over 250 miles away. They used cars with lower trim levels that did not have options available on that level trim that her car had. They also did not consider that hers was a CPO car that extended warrantee. I had to fight with them quoted Edmonds used car pricing and NADA retail pricing value and two appropriate comps only 12 miles from my home. None of this did any good. Finally I told them I was going to get a lawyer who I assumed would include items like loss of income from time I lost. They took 5 minutes and they called back after deciding I was correct. Do not expect a fair settlement from them. I was not expecting a windfall or to make money on this. The car we bought only 5 months earlier cost 700 dollars more than the settlement we got. I wish there was some way to know what you would get from these companies for your money.

andrewket · Dec 28, 2015

Chickenlittle said:
Watch out with Allstate. Daughter had accident other driver had Allstate as well. Other driver ticketed for running red light and had t boned her. Allstate determined other driver 100% at fault. So far everything good but then they valued the car. They used comp value cars that were far away, one over 250 miles away. They used cars with lower trim levels that did not have options available on that level trim that her car had. They also did not consider that hers was a CPO car that extended warrantee. I had to fight with them quoted Edmonds used car pricing and NADA retail pricing value and two appropriate comps only 12 miles from my home. None of this did any good. Finally I told them I was going to get a lawyer who I assumed would include items like loss of income from time I lost. They took 5 minutes and they called back after deciding I was correct. Do not expect a fair settlement from them. I was not expecting a windfall or to make money on this. The car we bought only 5 months earlier cost 700 dollars more than the settlement we got. I wish there was some way to know what you would get from these companies for your money.

Thanks for the warning. I actually have replacement coverage for the first 24 months, so it makes it a bit easier. This is what a new car costs with the same options... pay up. But your warning is valid, and another reason I like to finance 100% and then obtain gap insurance. If what the insurance company pays is less than the loan, the other insurance kicks in and pays it off. Gap insurance is usually very cheap. It might not make you 100% whole, but it at least you can't go negative on the equity.

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