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Tesla Is So Sure Its Cars Are Safe That It Now Offers Insurance For Life (mashable.com)
In the self-driving future envisioned by Tesla CEO Elon Musk, car owners might be saying "goodbye" to a whole lot more than steering wheels. From a Mashable report: Musk is so sure of the safety features bundled into Tesla vehicles that his company has begun offering some customers a lifetime insurance and maintenance package at the time of purchase. No more monthly insurance bills. No more unexpected repair costs. "We've been doing it quietly," Tesla President of Global Sales and Service Jonathan McNeill explained on the call, "but in Asia in particular where we started this, now the majority of Tesla cars are sold with an insurance product that is customized to Tesla, that takes into account not only the Autopilot safety features but also the maintenance costs of the car." "It's our vision in the future that we'll be able to offer a single price for the car, maintenance and insurance in a really compelling offering for the consumer," added McNeill. "And we're currently doing that today."
There's no such thing as for life. If Tesla wants to bail, they can change their name to Tesla Motors 2 and get out of it.
Insurance for life on Autopilot safety features? Whose life? Mine, or the car's?
my, your, his/her/its, our, your, their
I'm, you're, he's/she's/it's, we're, you're, they're
What if you move?
"For life" doesn't necessarily mean "for long".
If God forks the Universe every time you roll a die, he'd better have a damned good memory.
What kind of coverage (ie does it have uninsured motorist coverage, or do you have to pay that out each month)? How much? Is it fully transferable when you sell the car? If so, is there a sunset date?
Captcha: quantify
I like to be supportive of Tesla, as the ideas are great, but based on past offerings this is likely get it while it's hot. Remember free supercharging for life?
Did you ever wake up in the morning, with a Zombie Woof behind your eyes? -- FZ
Of course since they have data they might just say "but, you were going 5 mph over the limit".
Brilliant idea a lifetime warranty that expires upon your death!
When something truly is 'all inclusive' it is amazing. You pay a fixed up front price and then enjoy the purchase without being nagged into extras down the road. Your purchase is secure and you front loaded the cost of those things that are covered. Statistically you may 'overpay' 10-15% compared to the average person who doesn't get the coverage but the freedom to control the cost and possible down time is worth it to most people.
Lots of reasons this is a good idea as long as it is optional.
Asians are short, so their eyes and bodies are closer to the controls. Caucasians are too tall and gangly to precisely control a vehicle.
Most of us have been around long enough to know that this promise is only as good as the company behind it and the insurance company underwriting the policy - if there is one.
And I've been through the situation where I had a lifetime guaranty and then the company was bought out and my lifetime ended.
And who knows if Tesla is going to be around - honestly. Even if you have an insurance policy with an insurance company that won't hesitate too much to pay out, where are you gonna get parts? Tesla's volumes are high enough for after market companies to make parts and if Tesla isn't around, their current suppliers may not be willing to make spare parts.
No thanks, I'll pass. I let the first adopters take the chances.
Dealers were upset at being cut out of the loop by Telsa (to the point of getting state legislatures to draft laws blocking Telsa's stores), just imagine how insurance companies are going to react.
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How many Asians do you see on the NASCAR circuit?
If you bought a chauffeur service you would expect the service to pay the chauffeur, maintain the car, and maintain the insurance. This isn’t much different (other than you own the car). Tesla is large enough to create the shared risk pool that insurance is founded on. Better yet, by also being the insurance it incentives them to make their cars as safe as possible. I don’t image regular insurance companies are too happy about this and will propose various strawman arguments in an attempt to keep Tesla and others from doing this once self-driving cars really get popular. In fact this all in one model is about the only way self-driving cars will be able to work. Self driving cars will only be safe as long as they are always maintained in top condition. Sensors have to be functioning and calibrated. Brakes have to be in good working order to maintain the cars safe expected stopping distance. Software upgrades are needed. Etc...
Once driver error is not the major factor in accidents it just doesn't make sense to keep the old insurance structure as the fault will almost always be with the manufacturer. This does of course reduce the insurance company's incentive (in this case the manufacture) to really go after claims due to negligence, though that will still be a private legal suit option. Let make sure providing the insurance doesn't also take away your right to sue.
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So let me get this straight. Pair the lifetime insurance with Autopilot, and so when your warranty costs go to a certain unprofitable threshold, Autopilot then drives you off a bridge?
For life means you sing your life to Tesla in return of a warranty. It will be so Cyberpunk that the post-cool becomes re-cool.
Why would you want your insurance company to know when you are speeding?
Same thing goes for having an insurance app. on your phone...
>Dealers were upset at being cut out of the loop by Telsa (to the point of getting state legislatures to draft laws blocking Telsa's stores)
The laws prohibiting manufacturers from owning dealerships were passed in the 1920s-1950s. (Before Elon Musk's father, Errol Musk, was born, and 60 years before 18 year-old Elon first came to North America). I guess those dealers must have psychic! Also very concerned about their great-grandchildren, since everyone involved in passing those laws are dead now.
If you learn a bit about what happened before manufacturing and dealerships were split up, and why those laws were passed, you'll probably have some interesting things to say about it.
turns 16 and starts driving the shiny tesla, is he covered when he tosses it into ludicrous mode and slams into someone?
Given the current regulatory climate governments are going to hold manufacturers' feet to the fire for failures caused by their software. Better to keep the risk cost in house where decisions can best be made about how to cover them than get third parties involved.
Have gnu, will travel.
In my computer shop, we provide a lifetime warranty with all of the machines we sell. I've had customers act quite incredulous, but it really doesn't cost me much. Why? Because it's only to the original purchaser, and I know that nobody is going to keep their computers that long. For the few odd ones who do (just a week ago, I replaced an IDE hard drive in a Windows XP computer I sold new), I build a lot of brand confidence at very little cost to me -- the replacement part only cost a few dollars.
Tesla's risk on this really isn't that high; the people who buy $80k cars generally don't keep them for very long before wanting an upgrade. Plus, for the poorer who would normally lean towards a used car, they might be enticed into a new car with this, since it's something that you literally can only get with a new car. Essentially, he's created a brand new reason for people to buy new; the depreciation doesn't look so bad, now. Full coverage insurance isn't cheap, even if you're only planning to keep the car for 3 or 4 years.
Along with an overpriced maintenance rider. Remember -- if you can buy a Tesla, you can afford to overpay for insurance and maintenance.
The only working economical model I see for lifetime car insurance is when the car maker is certain the car will quickly kill you!
Who will pay claims on the 'lifetime insurance' after Tesla goes bankrupt?
Is Tesla going to register with the state Department of Insurance for every state in which they are sold in, in the United States? If they want to call it "insurance," and bring it to the U.S., they'll have to. And if this is meant as actual comprehensive/liability insurance, they'll have to in order to avoid being shut down by said state insurance departments. Not to mention I'd love to see the look on a state trooper's face, "Well, you see, this car's insurance is paid for by the car company. No, I don't have an SR-22 or other proof of insurance... what do you mean, "Step out of the car while I call a tow truck???""