Cost of insurance for Model S

[David29]

I was annoyed that my auto insurance premium did not seem to be dropping much, if at all, as my car ages and loses value. So I called my insurer, USAA, and inquired about my premium. The premium for my 2015 Model S 70D is $2254 for the coming year, about half of which is collision. my basic question was why the premium keeps rising even though the car's value keeps falling and USAA would be giving me only about one third of its initial value if I had a total loss. I did not get a very satisfactory answer, just generalities about risk and loss experience etc.
But since I was car shopping, I asked for quotes for a couple of cars I have been considering. I had a VIN for a 2023 Audi eTron I have looked at, gave the agent the VIN, and got a quote of $2588/year, about $600/year more than the Model S, but for a practically brand new car, albeit one whose sticker price when new was well below what the Model S originally cost (about $85K in 2015). So that seemed about right considering how new the eTron is. Then I asked about a Genesis Electrified GV70. The premium for that would be only $1885/year, so considerably less than either the eTron or my current Model S, even though it would be brand new. The Genesis sticker price is $74,350 for the one I priced, so that is less than the original price of either the eTron or the Model S, showing the strong effect of purchase price on the insurance cost.
Obviously the specific prices are a function of where I live, my coverage, etc. But the differences in premiums seem to show that the premiums do not drop as much as I would have expected as the car ages, and instead are mainly a function of the car's initial cost. And one other example I looked at (for a different Audi) showed that specific option packages affect the premium, not just the MSRP.
Anyway, thought these numbers were rather revealing. Maybe everyone else is aware of these kinds of variables, but I thought I'd share my info in case it helps.
Bottom line is that buying a used car won't necessarily save you anything on insurance if the original price was high. And premiums do not seem to fall much as a car ages....Inflation probably keeps the premium up.

 

[paratrooper]

I was a long time USAA Insurance member and just recently switched away. No accidents or claims but rates dramatically going up. New provider came in at 1700 per year with Berkley One Insurance plus additional coverages at that price for new Model S as I was window shopping and comparing too

 

[Unclepaul]

While total loss will typically reduce with age, the actual costs of repairing these cars may actually be going up.

Insurance company pricing is kind of a black art. Does not always make sense.

 

[David29]

While total loss will typically reduce with age, the actual costs of repairing these cars may actually be going up.

Insurance company pricing is kind of a black art. Does not always make sense.

You make a good point. Most likely, and in fact hopefully, most claims would be for less than total. So, as the cost of repairs increases, the premiums will rise to the extent that the insurer expects to pay for repairs. I have had several collision repairs over my several decades of driving, but had a car totaled by USAA only once. I had not thought about it that way, was perhaps too focused on declining total value.