Re:Tesla Q3 2021 Earnings
by missedthecue on Wednesday October 20, 2021 @05:23PM
(#28936861)
Hmm. Car insurance is one of the most competitive industries in the US. Lots of players, slim margins, commodity product, etc... I wonder how long a company could charge people $50 more for braking hard and not lose customers. I know if I saw a surprise like that, I'd be getting quotes immediately.
There's lots of places where tiny upsides come with huge downsides. And yet for some reason people still accept them! My partner's manager signed up for a summer energy program that could cut off her HVAC system in exchange for a super-paltry discount on her monthly electricity bill. She cursed her decisions a few hours in to the next heat wave.
Re:Tesla Q3 2021 Earnings
by diebeforei485 on Wednesday October 20, 2021 @06:19PM
(#28937560)
I don't think they are all that competitive when it comes to insuring electric cars.
Re:Tesla Q3 2021 Earnings
by missedthecue on Wednesday October 20, 2021 @06:39PM
(#28937741)
Teslas at least are very expensive to repair. Despite the high premiums, they may be competitively priced.
Re:Tesla Q3 2021 Earnings
by diebeforei485 on Wednesday October 20, 2021 @07:34PM
(#28938257)
I suppose time will tell. If Tesla's insurance product becomes popular (in states/jurisdictions where it's offered), that would imply that big insurance companies are not pricing competitively.
Tesla gets to cheat a bit here, in that they don’t have to charge themselves markup on replacement parts for this own cars. So in theory they should always be able to outprice other providers for Teslas.
Re:Tesla Q3 2021 Earnings
by throwaway0a5e on Wednesday October 20, 2021 @09:57PM
(#28939394)
They also are only marketing to their own customers who generally have much safer lives than the Altima and Town and Country crowd.
You assume extra risk that the company won't screw you over for what is likely to be a very modest upside. There are lots of case studies of people who got massive unexpected bills because they were trying to save a few bucks. Especially since they will be able to assign the blame to the customer for their high rates. Never trust corporations more than you have to.