Tesla, insurers take different paths to deal with expensive repairs

[1srelluc]

Jan 26 (Reuters) - Tesla Inc's (TSLA.O) electric vehicles are expensive to repair - so much so that the automaker and insurers are addressing the issue in sharply different ways.

Chief Executive Elon Musk says Tesla is making design and software changes to its vehicles to lower repair costs and insurance premiums.

Insurance carriers, meanwhile, are writing off low-mileage Tesla Model Ys that have been in crashes, and sending them to salvage auctions after deeming many too expensive to repair.

During Tesla's fourth-quarter earnings call on Wednesday, Musk said premiums from third-party insurance companies "in some cases were unreasonably high" and that the EV maker's insurance arm was putting pressure on those carriers by offering lower rates to Tesla owners.

Musk also said "we want to minimize the cost of repairing a Tesla if it's in a collision," citing changes to vehicle design and software.

"It's remarkable how small changes in the design of the bumper (and) providing spare parts needed for collision repair have an enormous effect on the repair cost," he said. "Most accidents are actually small a broken fender or scratched side of the car."

Tesla did not respond to a request for further comment.

So far, Tesla's reputation for expensive vehicle repairs does not seem to have dampened demand, which Musk says is running well ahead of the company's ability to produce.

moar

LOL....I figured it was just a matter of time before the insurance industry said "no mas" and started totaling them....A State Farm agent I know gave me the low-down some time ago.

For example....A Tesla dealer in Arlington, Virginia charges over $200 per hour to do any repairs on the very EVs they sell.....EV repair is like a license to print money and insurance companies are not having any of it.

 

[beautress]

I have two prayers for the electric car industry and the solar panel bird killer anomalies.

Because electric cars require more fossil fuels through electrical generation plants, I pray that companies like Tesla go to war with finding ways to end burning twice the fuels that electric cars used compared to gas-driven cars that save money for families who use their autos for needs only they know about, and I hope they find a way to totally eliminate bird fatalities from a nation that is being paid off to put solar panels on every roof. Big mistake. Perhaps they can reduce bird deaths to a negligible # of bird deaths by reinventing smaller and more effective panels that do not harm our feathered friends. Birds are responsible for fertilizing fields and forests with their droppings, as are cows giving fertilizer to former deserts before stock animals were reintroduced to many deserts in the world that got that way by killing off meat-bearing animals. I pray they become ornothology's best friends by making sure no bird dies or becomes disoriented by refractions off the panels. The more I hear about Mr. Musk, the more I believe he will be key to making fossil fuels work and restoring the earth by ensuring no bird dies from the equipment he gives to this world to help solve human issues. I believe he's the one who will restore the bird population, and get ornithologists enthused about destroying threats worldwide to our beautiful and useful-to-the-biome advantages their existence brings to the table of blessings for mankind. He's one of the few good human beings smart enough to review the options and slug out another homer for team earth.

Hints: Can Livestock Grazing Stop Desertification?

Increasing Energy Inefficiency

We are getting less efficient at converting energy into usable forms

spectrum.ieee.org

On the other hand, maybe one of you USMB problem-solvers or wizened electrical engineers will be the one who tackles ecological electrical excellence in less than a generation.
Love, beautress

 

[Moonglow]

I have two prayers for the electric car industry and the solar panel bird killer anomalies.

Because electric cars require more fossil fuels through electrical generation plants, I pray that companies like Tesla go to war with finding ways to end burning twice the fuels that electric cars used compared to gas-driven cars that save money for families who use their autos for needs only they know about, and I hope they find a way to totally eliminate bird fatalities from a nation that is being paid off to put solar panels on every roof. Big mistake. Perhaps they can reduce bird deaths to a negligible # of bird deaths. Birds are responsible for fertilizing fields and forests with their droppings, as are cows giving fertilizer to former deserts before stock animals were reintroduced to many deserts in the world that got that way by killing off meat-bearing animals. I pray they become ornothology's best friends by making sure no bird dies or becomes disoriented by refractions off the panels. The more I hear about Mr. Musk, the more I believe he will be key to making fossil fuels work and restoring the earth by ensuring no bird dies from the equipment he gives to this world to help solve human issues. I believe he's the one who will restore the bird population, and get ornithologists enthused about destroying threats worldwide to our beautiful and useful-to-the-biome advantages their existence brings to the table of blessings for mankind. He's one of the few good human beings smart enough to review the options and slug out another homer for team earth.

On the other hand, maybe one of you USMB problem-solvers will be the one who tackles ecological excellence in less than a generation. Love, beautress

Better pray for the birds to be saved from their greatest murderer of all birds, cats.
What is the most common cause of bird death?


The research shows that cats are the No. 1 killer by a long shot, racking in roughly 2.4 billion bird deaths each year, according to median estimates.Dec 24, 2019
https://www.usnews.com/news/politics/articles/2019-12-24/donald-trump-windmills-and-the-truth-about-bird-death#:~:text=The research shows that cats,year, according to median estimates.

Donald Trump, Windmills and the Truth About Bird Death​

https://www.usnews.com/news/politics/articles/2019-12-24/donald-trump-windmills-and-the-truth-about-bird-death#:~:text=The research shows that cats,year, according to median estimates.

Are yous gonna get rid of cats?

 

[Moonglow]

Petroleum kills birds at a greater rate than wind and solar power.



Do fossil fuels kill more birds than wind turbines?


In the Sovacool study cited above, it was found that wind farms are responsible for 0.3 bird deaths per gigawatt-hour (GWh) of electricity, whereas fossil-fuel power stations are responsible for 5.2 fatalities per GWh. According to those numbers, fossil-fuel power stations are 17 times more lethal than wind farms.

Energy and Wild Animal Deaths​

 

[Moonglow]

As far as the cost of a new production item I can tell yous that internal combustion went through the same growing pains as the current automobile which is way overpriced for the value received.....

 

[Baron Von Murderpaws]

I watch Wham Bam Tesla Cam on Youtube, and I can see Teslas are made from super CHEAP and EASILY destroyable materials......including the windows!!!

I'll never own a Tesla product. Just like Apple, they're all heinously over-priced pieces of garbage.

 

[beautress]

Better pray for the birds to be saved from their greatest murderer of all birds, cats.
What is the most common cause of bird death?


The research shows that cats are the No. 1 killer by a long shot, racking in roughly 2.4 billion bird deaths each year, according to median estimates.Dec 24, 2019
https://www.usnews.com/news/politics/articles/2019-12-24/donald-trump-windmills-and-the-truth-about-bird-death#:~:text=The research shows that cats,year, according to median estimates.

Donald Trump, Windmills and the Truth About Bird Death​

https://www.usnews.com/news/politics/articles/2019-12-24/donald-trump-windmills-and-the-truth-about-bird-death#:~:text=The research shows that cats,year, according to median estimates.

Are yous gonna get rid of cats?

Mr. Moonglow, did you know if you empty your cat litter box beneath a bird-filled tree, that they will find a catless home to hang out by. And birds make exception to hang out around acorn- and nut-bearing trees that have been saved by home or land-owners over generations. Surely you already knew that from your extensive library work on the subject. Unless you're faking superior intelligence, which I think is not the case. After all, you are the USMB board smarty pants.

 

[1srelluc]

Insurance companies refusing to pay for expensive repairs on the EU cars like Mercedes and BMW (and totaling them after fender-benders) was how the likes of Lexus came about.....The EU car repair shops thought they had a money printing machine too till insurance companies showed them different.

Maybe they will force EV makers to simplify/toughen-up their EV lines.

 

[Moonglow]

Mr. Moonglow, did you know if you empty your cat litter box beneath a bird-filled tree, that they will find a catless home to hang out by. And birds make exception to hang out around acorn- and nut-bearing trees that have been saved by home or land-owners over generations. Surely you already knew that from your extensive library work on the subject. Unless you're faking superior intelligence, which I think is not the case. After all, you are the USMB board smarty pants.

I see your desire to save the birds only applies to the Green Energy sector.

 

[Donald H]

Insurance companies refusing to pay for expensive repairs on the EU cars like Mercedes and BMW (and totaling them after fender-benders) was how the likes of Lexus came about.....The EU car repair shops thought they had a money printing machine too till insurance companies showed them different.

Maybe they will force EV makers to simplify/toughen-up their EV lines.

In Canada the cost to insure cars that are expensive to repair, is compensated for by more expensive insurance, and the insurance companies do pay claims.

It's a capitalist concept that works in a society in which there are laws that protect citizens.

IN B.C. the concept is borrowed by government to keep our socialist insurance plan head and shoulders above the private plans.

 

[1srelluc]

In Canada the cost to insure cars that are expensive to repair, is compensated for by more expensive insurance, and the insurance companies do pay claims.

It's a capitalist concept that works in a society in which there are laws that protect citizens.

IN B.C. the concept is borrowed by government to keep our socialist insurance plan head and shoulders above the private plans.

BS....I have "congress-critter" insurance....The best the world has to offer.

That and it's not the .gov's job to tell a insurance company how much risk that they need to take on....For any policy price.

 

[Donald H]

BS....I have "congress-critter" insurance....The best the world has to offer.

That and it's not the .gov's job to tell a insurance company how much risk that they need to take on....For any policy price.

I rate insurance as 'best' based on cost and it providing confidence that the claim will be dealt with quickly and be paid without a fight. I've found our ICBC very good.

The requirements of an insurance company aren't detailed and complicated. What do you require of an insurance company?

edit: Oh, and two or three free chances before the premium is increases due to experience.

 

[ding]

In Canada the cost to insure cars that are expensive to repair, is compensated for by more expensive insurance, and the insurance companies do pay claims.

It's not that insurance companies aren't paying claims. They have to by contract. They declare vehicles as total losses when the estimated repair cost exceed 75% of the vehicle's value. When that happens they pay the market value of the car to the owner and sell the car at auction as is. The title on the car is then marked as salvaged. So whoever bought the car at auction could make the repairs or salvage the parts but if they ever try to sell it again the title will reflect that it is a salvaged vehicle which greatly reduces the price they can get for it.

 

[beautress]

I see your desire to save the birds only applies to the Green Energy sector.

I'm sorry if I hurt your widdle feewings, Mr. Moonglow. I tawwy. Love, beautress.

 

[Donald H]

It's not that insurance companies aren't paying claims. They have to by contract.

No, that's the reason why there are law suits against insurance companies. And too, in B.C. the car owner isn't forced to spend thousands of dollars in court.

They declare vehicles as total losses when the estimated repair cost exceed 75% of the vehicle's value.

Yes, and the 75% can vary in different jurisdictions.

When that happens they pay the market value of the car to the owner and sell the car at auction as is.

In B.C. our government run insurance provides another option in which full replacement value is paid and a loaner vehicle is provided while the owner shops. The premiums are slightly higher, based on experience.

The title on the car is then marked as salvaged.

In B.C. the law says that extensive damage must be declared. Probably the same thing basically.

So whoever bought the car at auction could make the repairs or salvage the parts but if they ever try to sell it again the title will reflect that it is a salvaged vehicle which greatly reduces the price they can get for it.

Yep, the same.

What are you trying to debate?

 

[ding]

No, that's the reason why there are law suits against insurance companies. And too, in B.C. the car owner isn't forced to spend thousands of dollars in court.

Prove it. Because not only do I not believe that, the quote in the OP is describing exactly what I have said.

"Insurance carriers, meanwhile, are writing off low-mileage Tesla Model Ys that have been in crashes, and sending them to salvage auctions after deeming many too expensive to repair."

That's what "writing off" means. "Writing off" does not mean not paying claims. It means the repair costs are high enough that they can declare the EV a total loss. Which means they pay the owner the value of the car and scrap the car which they then sell for salvage value and write off their loss.

If owners are suing they are suing over the insurance companies declaring their vehicle a total loss or are suing because they do not believe the market value of their car was correct.

 

[ding]

Yes, and the 75% can vary in different jurisdictions.

You are proving my point for me. There is a threshold which does exist which allows insurance companies to declare the vehicle a total loss. This exists so that repair costs - which start as an estimate - won't exceed the value of the vehicle.

The reality of this situation is that it is expensive to repair EV's that have been in crashes.

 

[ding]

In B.C. our government run insurance provides another option in which full replacement value is paid and a loaner vehicle is provided while the owner shops. The premiums are slightly higher, based on experience.

Prove it.

 

[ding]

In B.C. the law says that extensive damage must be declared. Probably the same thing basically.

Only if what you mean by declared is that a title is issued which says salvaged vehicle. Which only occurs if the vehicle was totaled by the insurance company.

 

[ding]

What are you trying to debate?

That the OP is not saying owners are not having their claims paid. They are. They have to be paid. It's contractual. It would be a huge no no for insurance companies to not follow the terms of their contract. And would most likely result in treble damages being awarded.