Tesla Insurance Question and how to get out of the deposit

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InvestoGuy
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Tesla Insurance Question and how to get out of the deposit

Post by InvestoGuy » Tue Jul 03, 2018 10:42 am

Hello,
I made a stupid mistake recently (very unlike a boglehead). I have led my life in a financially responsible way and have tried my best to follow the 'Millionaire next door' lifestyle and also the boglehead tenets. This is what I did and please advise how I can come out of this quandary.

I reserved a Model 3 several months ago (thinking it was really $35K) car. Soon I realized it is about $60K and I started to prepare myself for a once in a life time $60K purchase. I am 48 and have a decent nest egg, so thought a once in a life time reward is well deserved. Last week, I got the email from Tesla asking me to put additional $2500 to configure my car. In excitement, I pulled my cc out and paid the $2500 (the first BIG mistake).

Then I called my insurance agent and got a quote to insure a brand new Tesla. I have two teenage kids (girl and a boy). The insurance price is outrageous. (2nd big mistake, why did i not think about insurance cost). It is $1000s more than what i am paying currently. Thus my questions:
1. Is there a way just to insure the car for me and my wife only and not the kids, to save on insurance. Allstate told me this is NOT possible?
2. Any other ways to keep the insurance cost down?
3. The $2500 is non-refundable, very clearly stated by Tesla. Is there any way to get this $2500 back?
4. Can the car be transferred to someone else or 'bought' for someone else so I can recover my $2500?
5. Worst case, is it better to simply let go the $2500 and avoid future loses?
6. What would you do?

Looking forward to some serious advice.

Regards.

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lthenderson
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Re: Tesla Insurance Question and how to get out of the deposit

Post by lthenderson » Tue Jul 03, 2018 10:53 am

InvestoGuy wrote:
Tue Jul 03, 2018 10:42 am
1. Is there a way just to insure the car for me and my wife only and not the kids, to save on insurance. Allstate told me this is NOT possible?
2. Any other ways to keep the insurance cost down?
1. Comprehensive insurance follows the car, not the driver so there really isn't any way to exclude someone. Some states due allow you to exclude certain drivers in your household but generally they are limited to ones that have had several claims already. Some states, do not allow this even in those situations.

2. Get a higher deductible plan. Also, some insurance companies give discounts if it is considered a leisure vehicle and is used less than a set mileage limit per year. For my insurance, that limit is set at less than 10,000 miles per year.

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Pajamas
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Re: Tesla Insurance Question and how to get out of the deposit

Post by Pajamas » Tue Jul 03, 2018 10:59 am

InvestoGuy wrote:
Tue Jul 03, 2018 10:42 am

Then I called my insurance agent and got a quote to insure a brand new Tesla.
Get some more quotes.

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Nate79
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Re: Tesla Insurance Question and how to get out of the deposit

Post by Nate79 » Tue Jul 03, 2018 11:00 am

You should call around to as many insurance companies as you can find or contact some insurance brokers to shop around for you. You should do this regardless of your decision or not to buy a Model 3.

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matjen
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Re: Tesla Insurance Question and how to get out of the deposit

Post by matjen » Wed Jul 04, 2018 7:46 am

Sorry to hear this. I brought up many of the issues you raise on another very long Tesla Model 3 specific thread. I do recall someone saying they were able to shop around and get a better rate than they were originally quoted. This won’t miraculously change the fact that the Model 3 is expensive to insure.

Please report back with what you find. Will be a good data point.
A man is rich in proportion to the number of things he can afford to let alone.

harikaried
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Re: Tesla Insurance Question and how to get out of the deposit

Post by harikaried » Sat Jul 14, 2018 5:31 pm

I just called AAA to get an estimate for replacing our ~25 year-old Camry with a Model 3 LR AWD, and overall it increases the yearly premium by $559 where most of that is an additional $448 is for adding comprehensive/collision with $1k deductible.

Interestingly, breaking down the comprehensive and collision for the 2018 Model 3 and 2014 Forester (where the Model 3 is less than double the original price of the Forester):

Model 3 Comprehensive: $370
Forester Comprehensive: $73
Model 3 Collision: $78
Forester Collision: $211

I wonder if this is indicating the Model 3 is less likely to collide with another vehicle but may be more likely to be stolen or vandalized…?

NewPhoneWhoDis
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Re: Tesla Insurance Question and how to get out of the deposit

Post by NewPhoneWhoDis » Mon Jul 16, 2018 10:00 am

Like moths to a flame.

Jack FFR1846
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Re: Tesla Insurance Question and how to get out of the deposit

Post by Jack FFR1846 » Mon Jul 16, 2018 10:07 am

There absolutely IS a way to exclude people on a car. You and the excluded person both have to sign a form to exclude the driver from the car. Each excluded person has to fill out a separate form. I've done this many times because.....who wants a 17 year old on a policy for a Lotus?

Here's the clear things that are on the form. If an excluded driver does drive the car and is involved in any incident that would generate a claim (by that driver or by someone else), the insurance on the car drops to mandated minimum limits for the state. For my state, that's $10k liability and nothing else. So if my son had somehow driven my Lotus and crashed into a Tesla, Insurance would pay nothing for the Lotus damage and a maximum of $10k liability. All else would fall on the insured to cover, so if only property damage, I'd have been out the money out of pocket to repair the Tesla.

If your insurance company does not have such a form, change.
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kchico
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Re: Tesla Insurance Question and how to get out of the deposit

Post by kchico » Mon Jul 16, 2018 7:22 pm

My model 3 insurance is the same as my wifes 2016 RAV4. Try Esurance :beer . $70 per month.

And the website is now back up... They cannot even do website mantainance because shorts start writing fairytale stories :) .

djheini
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Re: Tesla Insurance Question and how to get out of the deposit

Post by djheini » Mon Jul 16, 2018 8:49 pm

My understanding was that the $2500 was refundable until you got assigned a VIN/specific vehicle in production. Depending on how long it's been since you ordered and what options you chose, is it possible this hasn't happened yet?

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matjen
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Re: Tesla Insurance Question and how to get out of the deposit

Post by matjen » Tue Jul 17, 2018 9:03 am

FWIW, my DW is about to buy a new car. I quickly got quotes from Geico which is our current insurance company. A Telsa Model 3 would cost us $1,000 more a year to insure than her older 3 series BMW. A new BMW X3 would cost us $518 more a year than the older 3 series. Everything the same for both quotes (main driver, miles driven, address, etc.). We have no teenage drivers and excellent history however. Just a data point.
A man is rich in proportion to the number of things he can afford to let alone.

Big Dog
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Re: Tesla Insurance Question and how to get out of the deposit

Post by Big Dog » Tue Jul 17, 2018 9:17 am

Get some more quotes.
Call around to other companies to see what they offer.

Topic Author
InvestoGuy
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Re: Tesla Insurance Question and how to get out of the deposit

Post by InvestoGuy » Fri Aug 24, 2018 2:33 pm

Folks,
Wanted to report back on the action I took. I dropped the price of the Tesla Model 3 to the bare minimum configuration allowed as of now and resubmitted to my insurance company for a real quote using a real VIN. They came back with a much reasonable quote. Was only $50 more per month for a brand new Tesla (much reasonable). I decided to trade-in my 7-seater gas guzzler SUV and finally did purchase the Model 3. It has been a week now since I have it. Loving the car. It is simply amazing technology. Love not going to the gas station as well.

iamlucky13
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Re: Tesla Insurance Question and how to get out of the deposit

Post by iamlucky13 » Fri Aug 24, 2018 5:07 pm

Followups about how internet questions were ultimately resolved is an uncommon, but very helpful thing.

I'm not even considering a Tesla, but just killing time reading the thread, and wanted to thank you for potentially helping others resolve the same question.

Enjoy the new car!

harikaried
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Re: Tesla Insurance Question and how to get out of the deposit

Post by harikaried » Fri Aug 24, 2018 5:34 pm

Ah, I can provide an insurance quote update now that we have the VIN for the Model 3 LR AWD. Replacing our 94 Camry, our yearly premium is increasing by $394 or roughly $33/mo. Also, in a previous post, I was wondering about the differences in Comprehensive and Collision, and turns out they just read those numbers to me in a different order than what's on the declarations page.

ThatGuy
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Re: Tesla Insurance Question and how to get out of the deposit

Post by ThatGuy » Fri Aug 24, 2018 6:52 pm

InvestoGuy wrote:
Fri Aug 24, 2018 2:33 pm
Folks,
Wanted to report back on the action I took. I dropped the price of the Tesla Model 3 to the bare minimum configuration allowed as of now and resubmitted to my insurance company for a real quote using a real VIN. They came back with a much reasonable quote. Was only $50 more per month for a brand new Tesla (much reasonable). I decided to trade-in my 7-seater gas guzzler SUV and finally did purchase the Model 3. It has been a week now since I have it. Loving the car. It is simply amazing technology. Love not going to the gas station as well.
Going from a 7 seat SUV to a (relatively) small electric sedan is quite a difference in vehicle needs. What prompted the change?

Or is this popularity chasing?
Work is the curse of the drinking class - Oscar Wilde

gougou
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Re: Tesla Insurance Question and how to get out of the deposit

Post by gougou » Fri Aug 24, 2018 8:43 pm

My Tesla Model S insurance is about $1800 per year with Farmers Insurance. You should shop around.

My colleague was in a similar situation as you. He reserved Model 3 and he configured his Model 3 on impulse and later regretted it. But he was able to talk with someone from Tesla to cancel his order and got his $3500 back. I think Model 3 is selling so well now that they are OK with some buyer remorse. Tesla has very good customer service.

AlphaLess
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Re: Tesla Insurance Question and how to get out of the deposit

Post by AlphaLess » Fri Aug 24, 2018 8:46 pm

InvestoGuy wrote:
Fri Aug 24, 2018 2:33 pm
Folks,
Wanted to report back on the action I took. I dropped the price of the Tesla Model 3 to the bare minimum configuration allowed as of now and resubmitted to my insurance company for a real quote using a real VIN. They came back with a much reasonable quote. Was only $50 more per month for a brand new Tesla (much reasonable). I decided to trade-in my 7-seater gas guzzler SUV and finally did purchase the Model 3. It has been a week now since I have it. Loving the car. It is simply amazing technology. Love not going to the gas station as well.
Congrats!
Embracing new technology is the only way for us to move forward.
"A Republic, if you can keep it". Benjamin Franklin. 1787. | Party affiliation: Vanguard. Religion: low-cost investing.

financeperchance
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Re: Tesla Insurance Question and how to get out of the deposit

Post by financeperchance » Fri Aug 24, 2018 9:29 pm

By the way, if anyone here is reading this and is looking for Tesla insurance, I highly recommend USAA. If you're a veteran or an immediate relative of someone who is, you qualify. I get a really good deal through them.

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LadyGeek
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Re: Tesla Insurance Question and how to get out of the deposit

Post by LadyGeek » Fri Aug 24, 2018 10:26 pm

I removed some off-topic posts and replies. As a reminder, see: General Etiquette
We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.

...At all times we must conduct ourselves in a respectful manner to other posters. Attacks on individuals, insults, name calling, trolling, baiting or other attempts to sow dissension are not acceptable.
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financeperchance
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Re: Tesla Insurance Question and how to get out of the deposit

Post by financeperchance » Sat Aug 25, 2018 1:41 am

LadyGeek wrote:
Fri Aug 24, 2018 10:26 pm
I removed some off-topic posts and replies. As a reminder, see: General Etiquette
We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.

...At all times we must conduct ourselves in a respectful manner to other posters. Attacks on individuals, insults, name calling, trolling, baiting or other attempts to sow dissension are not acceptable.
Thank you.

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Re: Tesla Insurance Question and how to get out of the deposit

Post by daveydoo » Sat Aug 25, 2018 2:02 am

InvestoGuy wrote:
Tue Jul 03, 2018 10:42 am
It is $1000s more than what i am paying currently....
This seems weird and unexpected. I get the impact of the kids -- boy especially, and no pun intended -- but not this particular vehicle on top of that.

Mind sharing by what percent the bill will go up? I can't tell if you're a family of menaces ( :D ) and this is only a 20% increase, or if it's a tripling of your formerly-good rate.
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"

Topic Author
InvestoGuy
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Re: Tesla Insurance Question and how to get out of the deposit

Post by InvestoGuy » Sat Aug 25, 2018 1:46 pm

ThatGuy wrote:
Fri Aug 24, 2018 6:52 pm
InvestoGuy wrote:
Fri Aug 24, 2018 2:33 pm
Folks,
Wanted to report back on the action I took. I dropped the price of the Tesla Model 3 to the bare minimum configuration allowed as of now and resubmitted to my insurance company for a real quote using a real VIN. They came back with a much reasonable quote. Was only $50 more per month for a brand new Tesla (much reasonable). I decided to trade-in my 7-seater gas guzzler SUV and finally did purchase the Model 3. It has been a week now since I have it. Loving the car. It is simply amazing technology. Love not going to the gas station as well.
Going from a 7 seat SUV to a (relatively) small electric sedan is quite a difference in vehicle needs. What prompted the change?

Or is this popularity chasing?
We have out grown the needs for a 7-seater. One kid in college (and out of the house), another one in high school and drives his own vehicle, change is life style due to kids entering next phase in life. We were always a 2-car family and still are with the new car, when a 3rd car is needed, i just call Uber. I usually do not 'follow the herd'. I make decisions based on my life situations and what makes sense me us.

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InvestoGuy
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Re: Tesla Insurance Question and how to get out of the deposit

Post by InvestoGuy » Sat Aug 25, 2018 1:47 pm

LadyGeek wrote:
Fri Aug 24, 2018 10:26 pm
I removed some off-topic posts and replies. As a reminder, see: General Etiquette
We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.

...At all times we must conduct ourselves in a respectful manner to other posters. Attacks on individuals, insults, name calling, trolling, baiting or other attempts to sow dissension are not acceptable.
Thanks for doing it. Sorry, I didn't see this or wouldn't have responded.

Nissanzx1
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Re: Tesla Insurance Question and how to get out of the deposit

Post by Nissanzx1 » Mon Aug 27, 2018 12:32 am

I'd let the $2500 go and cut your losses. It sounds as though this is a purchase you aren't ready to make and this is no longer a value proposition to your family.

wrongfunds
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Re: Tesla Insurance Question and how to get out of the deposit

Post by wrongfunds » Wed Oct 17, 2018 10:49 am

what happened? My insurance company Metpay wants VIN number before giving a realistic quote. How does one get a VIN number before having to commit to the vehicle?

harikaried
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Re: Tesla Insurance Question and how to get out of the deposit

Post by harikaried » Wed Oct 17, 2018 4:00 pm

wrongfunds wrote:
Wed Oct 17, 2018 10:49 am
How does one get a VIN number before having to commit to the vehicle?
Before we got our VIN, I got a quote with just a make, model, and estimated price; and the quote was pretty accurate within $10/mo I believe.

If you're getting a AWD, you can try 5YJ3E1EB7JF055000. Or a RWD try 5YJ3E1EA5JF050000. (The difference between the VINs is AWD has "B" for the 8th position and RWD has "A". And I just picked some 6-digit serial number (the last 6) around when Tesla started making AWD: ~55k. The 9th position is a check digit to help validate the VIN.) Just make sure to update the VIN if actually purchasing the vehicle and insurance.

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