Tesla Insurance

Last updated 05-Jan-2023

Insuring Electric cars can be straightforward but there are some notable differences you need to be aware of. We run through the main ones and help explain why it's relevant and what you can do about it and how to increase your security.

Security and passive entry

This is a feature whereby you only need to walk up to your car and it detects your presence, unlocks and presents the door handles (MS) or even opens the door (MX). The feature is not unique to Tesla, but unfortunately it can be exploited by car thieves. There are a number of different ways this can happen which also differs by model, and we have a whole section on Tesla security advice that advises on how to minimise the risks.

Tesla have made changes to reduce the risk and taking some steps can help:

  • Turn off passive entry in the car. It's a belt and braces approach and you have to unlock the car manually by clicking the car key. This is recommended by some of the owner's club but we feel can be impractical given relay attacks are now less common, and on Model 3 and Model Y is not possible in the traditional sense.
  • Turn on Pin to Drive. Tesla introduced the option to have a pin code in the car preventing it from being driven. This works in preventing the car being driven, however the thief will already have gained access to your car and can steal any content.
  • Have a visible deterent such as a steering wheel lock. While these can often be broken off, it does make your car less desireable when compared to one without the device.

The choice is yours and of course you can do none of them, but the cars are expensive and desirable and have been targeted for theft, especially around London.

Dash Cam

Tesla have a built in dash cam on all cars since the introduction of AP HW3, and 3rd party Dash Cams are also availble. It is a personal thing whether you want to activate it, on the one hand it can incriminate you if you drive badly, but it can also protect you if you're an innocent victim.

Sentry mode

Tesla also offer Sentry mode on all but the earliest cars which allows the car to use its numerous cameras to record anybody approaching the car. While this seems great and many people use it, it has two downsides. The first is that it consumes a lot of energy and therefore increases vampire drain, although this can be controlled to, say, not operate at home or work. The second issue is the video is stored within the car on a memory storage device plugged into the USB slot. It won't be long before car thieves are aware of how this works and will ensure they steal the storage device if they are casually breaking in for other purposes.

Sentry mode when using the cameras to activate can also be an annoyance and draw attention to the car due to false alarms. Tesla have introduced an option to only trigger a recording from sensors other than the cameras to reduce this problem.

Trackers

Some insurance companies have a policy of demanding a tracker if the car is above a certain price or performance ability. For many years the Tesla community advice was that the car could be tracked by Tesla and no extra tracker was required, and if your insurance company mandated it, go to a different insurance company. Tesla have also threatened to invalidate warranty if a 3rd party wired tracker causes problems with the car.

That position has changed slightly as the tracker is easily defeated by either removing the SIM or using a blocking device, although this is not unique to Tesla. Tesla have made the SIM less accessible in later cars to try and mitigate that part of the problem. The tracker is also not industry approved in many countries, e.g. Thatcham in the UK, and highly unlikely to be as insurance companies are looking for tracker services to include integration with call centres and automatic liaison with the Police. That said, a number of insurance companies do now accept the Tesla system and have softened their requirement. Always check with the insurance company on their policy and do not assume the Tesla system is sufficient.

The tracker also only updates the cars position when the wheels are turning. A car put on a carrier will not update its position while being moved.

For peace of mind, even if the Tesla system is accepted, we suggest getting your own 3rd party tracking device. Thanks to Apple Airtags, this is now as cheap as $30. Simply buy an Airtag, register it to your apple account, and leave it in your car.

Apple Airtag

Charging Cable theft

This is a relatively rare crime, but there have been spates of cable theft from cars plugged in and charging. The cable is meant to be locked when charging and indeed there is a locking pin, but it's been found that these can be forced and the cables taken. The cables sell for over £100 on the used market. There's no easy advice, some people look to get a padlock and lock the cable to the wheel of the car, others have suggested driving over the cable and park on it, but in all honesty, we say don't worry. It's pretty rare, it's not impossible, but you're more likely going to chip and alloy or damage a tyre and either of those will cost more than a stolen cable to put right.

Insurance

Accident damage lead times

One slightly worrying aspect of Tesla's, and to a lesser extent all electric cars, is the time it can take to get cars repaired. For minor bumps and scrapes where repair rather than replace is an option, it should be no longer than any other type of car. Where replacement panels or more extensive repairs including components such as radiators (yes, electric cars have radiators) or suspension, the repairs can take much longer. There are a couple of reasons for this. Firstly, the number of accident repair garages, and capacity is relatively small, and so it's possible there are delays simply finding suitable garages to do the work or even be prepared to quote. The second and more significant reason is parts availability. The relatively low number of cars and limited production means replacement parts can take some time to be sourced. Tesla are particularly bad on certain parts and delays of several months have been frequently reported.

If your car is off the road, be wary of accident management companies offering to loan you a car while yours is being repaired. We've heard of owners running up bills of £10k and more on high car charges and hoping to claim off the other driver. The accident management companies have their own fleet of cars, often Tesla's, and they loan these out on a "like for like" basis at pretty hefty rates. Just check carefully, but if you're the innocent party then the other sides insurance company will typically go out of their way to look after you, and if not, it's because there is doubt, and a 50/50 or knock for knock claim can leave you with a pretty steep bill

Software updates and your insurance.

We are starting to see insurance companies include in their terms and conditions the need to notify them following software updates. Given Tesla make frequent updates to the cars and have been known to unlock extra performance or change the functionality of autopilot, they may be reserving the right to change the premium should Tesla make considerable alterations.

Ironically, we have also seen insurance companies mandate that owners take software updates as soon as offered as it may include security fixes.

The only sensible advice we can give is to check the terms and conditions of any policy you have.

Insurance Companies

There are a number of insurance companies worth looking at, although as everyone's situation is different. In the UK we recommend trying more than one. LV are often quoted as having good prices and in the past NFU and Direct Line have.

Tesla have now entered the insurance market but it is still too soon to tell if their prices are competitive. Like all insurance companies there will specific drivers that their policy is best suited for so we recommend getting prices from several, including Tesla.

When getting quotes, here are a few tips to get the best price:

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