Insurance Renew

[Dcavalheiro]

Hello Rivian Owners,

It's the time to renew my insurance again, but I noticed that the price went in my case from 2500$/y to 5000$/y

Is this happening all over Ontario?

Sponsored

 

[YVR]

Hello Rivian Owners,

It's the time to renew my insurance again, but I noticed that the price went in my case from 2500$/y to 5000$/y

Is this happening all over Ontario?

Same in BC , my wife's Tesla is $2500 same clear driving record . Crazy

 

[cbrcanuck]

Yikes. I’m up for renewal in March. Fingers crossed. That’s a scary number.

 

[Donald Stanfield]

I wonder if this is tariff related due to them being American cars. Either way I hope your bills go down. This economy isn’t doing any favors for anyone, except maybe billionaires.

 

[UnsungZero_OldTimeAdMan]

It’s been happening for years even in the US. Inflation is a bitch and the corporations must make their annual and quarterly % profit margins no matter what. Since law requires all drivers to have active insurance coverage, and do not limit how much they can charge consumers, they have more freedom than they should have to set rates. Eventually, they’ll be squeezing blood out of rocks.

 

[M3_R2]

My Tesla went from about 1k to 3k/year. I recently had rough quotes on a '26 MYP and the upcoming BMW iX3 from same insurer. $5400 and $6100 respectively. Really trimmed my sails on the iX3. But will look around. I found this interesting:

https://www.beatmyinsurance.com/blogs/tesla-insurance-ontario-premiums/

I refuse to pay ridiculous sums for car insurance. My overall 5-year cost of ownership is always factored in to any decisions. There are far too many other things I can do with the money.

 

[YVR]

It’s been happening for years even in the US. Inflation is a bitch and the corporations must make their annual and quarterly % profit margins no matter what. Since law requires all drivers to have active insurance coverage, and do not limit how much they can charge consumers, they have more freedom than they should have to set rates. Eventually, they’ll be squeezing blood out of rocks.

Still does not explain why it is double the Tesla

 

[UnsungZero_OldTimeAdMan]

Still does not explain why it is double the Tesla

Count the money...



Economy of scale. How many cars (and parts for them) does Tesla make per year? compared to Rivian? Fewer parts = higher [repair] cost.

As cost of replacement & repair costs increase, insurance companies raise their premiums:

• so they can cover increasing cost of claims while maintaining (and even increase) their margins...
• so they can remain profitable to their investors, so they can continue to reward their executives with ever higher compensations...
• so they can continue to spend on high profile ad campaigns and celebrity endorsements
• so they can pass on all of these ever-increasing costs to customers who have no choice because the law requires them to be insured.

For expediency, all of these factors or chalked up to "inflation".

Theoretically, if Rivian engineered both R1 and R2 to share maximum number of parts possible and is able to ramp up production (to levels equal to Tesla), prices of said parts could come down for consumers. BUT don't count on it. Not a single for-profit business would ever say "nah, we're good, we don't want to make more money". And making money is exactly why people start for-profit businesses.

 

[cohall]

I don’t know if it’s available in Canada, but I got a killer deal on my 2 Rivians through Costco insurance. It’s just American Family but sold via the Costco website. Might be worth looking into.

 

[M3_R2]

Yes, it's a good point. Costco here offers Insurance through Inova. I was planning on shopping around anyway as I think it's time to do so. In fact I did try one service online but while the quote was much better it was so far away from the coverage I had that it would likely have been about the same in the end. It can be difficult making fair comparisons with online quotes. Now if only the iX3 could be had for about 1/2 what I was quoted, I would definitely reconsider it.

Actually I just went through the process with Inova who provided quotes from 6 insurers. I said I was willing to bundle my home insurance and also willing to use a phone app to monitor my driving. (which I don't use now)

Only 1 was less than I pay now on a Tesla M3. I have a clean driving record. $693 less per year but likely requires an app which I'm not sure I'd do. And I used significantly lower mileage than I have now as that's about to change, yet only 1 beat my current costs.

This tells me I'm likely not going anywhere and that I'll just have to be considerate of insurance costs for any new vehicles. The iX3 would be $2250 more per year or $11,250 over 5 years. Though not much more than a MYP.

For many EV's, not just Tesla, fewer parts/higher repair costs are part of the equation, yes, but not the whole story. Though for the iX3 it's also high cost of labor, parts availability/costs and high claim severity. It is also classified as luxury.

Sponsored