The Quashed Blog
Tesla car insurance in NZ
22 October 2021
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Tesla sales is up significantly in New Zealand. Just last month in September, it set a new record with 1066 sales taking it to second place for the month for new car sales. This was impressive for a number of reasons including a fully electric making the Top Three on the new car sales list for the first time and overtaking the Toyota Hilux in new car sales for the month.

Whether you're considering a Tesla for its technology, its green status or you count yourself as an Elon Musk fan and have perhaps bought shares in the company, you're certainly part of a growing group that owns a Tesla from recent car sales numbers.

If you are one of the fortunate few to have just ordered a new Tesla, or if you're thinking about buying one, read on to find out more about insuring your Tesla in New Zealand. We look at whether the Tesla Insurance programme is available, the insurance companies that offer online quotes for Teslas, compare the prices and look at the key benefits of the policies. 

Tesla cars in New Zealand

Before we jump into the insurance available for Tesla cars in New Zealand, let's take a quick look at their line up of vehicles. 

The Tesla range consist of the Model 3 (the compact), Model S (the sedan), Model X (the SUV), the Model Y (coming soon) and Cybertruck (coming soon).

The Model 3 is currently available for order and delivery within a couple of months. In particular, it is the most affordable model in its line up and starts at $68,732 (before the eligible $8,625 Clean Car Programme discount which is valid till 31 March 2022), and was the standout performer in terms of new sales last month. While the price of the Model 3 starts in the middle of the range for a new car, it quickly jumps when you select additional options such as the Long Range option (+$16,000), the Performance model (+$29,000) or equip it with full self driving capability (+$11,400). 

The Model S is not available for delivery until late 2022 and prices start from $177,822 and the Model X is too not available for delivery until late 2022 and prices from $192,798 as seen on their website in October 2021.

Is Tesla Insurance available in New Zealand

The much talked about Tesla Insurance which has made waves and put fear into insurance companies wondering how the wunderkind Elon Musk and his tech company is going to disrupt and takeover the insurance industry, is unfortunately not available in New Zealand. California and Texas are the pilot states where the program is currently available and uses telematics (key difference being Tesla owners do not have to install any other additional devices into the vehicle for it to work) and real-time data to price the insurance risk. Pricing comes down to six factors: (1) Driving behaviour (2) Distance travelled (3) Vehicle type (4) Home location (5) Level of cover selected (6) Multi policy discount. 

Tesla New Zealand does reference a InsureMyTesla programme which is a tie up with Vero New Zealand. This is not to be confused with the Tesla Insurance programme that is available in the US. And unfortunately, it does not look like there is the kind of online seamless service that one would expect of Tesla given only an email address and a phone number on the site to find out more information. Online quoting is unavailable for this. Read on more to discover other online options in New Zealand.

The locally available InsureMyTesla cover in partnership with Vero offers the following benefits: New car replacement (up to 24 months or 40,000km), 20% standard excess reduction after 90 days, cover for loss or damage to your home charging equipment, full glass coverage, including panoramic roof and optional rental car cover. Stand out features from what we can see are the 24 months or 40,000km new car replacement benefit (most insurers offer this for under 12 months old car, except Tower which also offers a comparable benefit) and loss or damage to home charging equipment although your Home/Contents insurance should offer protection for this.

Which insurance company can I get my Tesla insured with online

Part of Tesla's appeal is this simple and seamless purchase experience. Everything is done online with ease. However, getting your Tesla insured is another story altogether but there is hope with a few good online options. If you rang up most insurance companies, there is a good chance they now offered insurance for Tesla vehicles. However, being able to get a quick and easy quote and purchase a cover online is still less common. 

AA, Tower and Trademe insurance are the insurance companies offering online quote and purchase for Teslas. For those that are not aware, Trademe insurance is underwritten by Tower although there are differences in pricing and benefits covered within their policies. The online quote process usually offers a quote after answering between 10 - 20 questions and before you purchase there are usually a few more questions to get through.

Trying to get online quote for AMI and State for a Tesla both throws up a pop up asking you to call them instead due to the type of vehicle you are trying to insure. With increasing sales of Teslas, it must only be a matter of time before this changes. Sooner rather than later we hope.

How much does it cost to insure a Tesla car in New Zealand

In our test using Market Scan for a Comprehensive cover for a 35 year old male in Auckland insuring the most popular Model 3 for $60,000 with a $500 excess:

AA - $2,433.32 ($224.19 monthly and $105.57 fortnightly)

Tower - $1,956.51 ($180.18 monthly and $83.16 fortnightly)

Trademe - $1,670.57 ($70.64 fortnightly)

At Quashed, we say that price is not everything but it's certainly one of the key factors when looking at an insurance policy. Trademe insurance in this case is the cheapest but looks to have the weakest policy benefits i.e. does not cover for lost or stolen keys, no trailer cover and no new car replacement benefit. However, the lost or stolen key and trailer benefit cover will likely not apply given that Tesla's are well known for being operated and accessed through your phone app and we have not yet seen a Model 3 with a tow bar. A key fob is available as an alternative to using your phone app, and is priced at $260 in New Zealand for the Model 3. Leaving the new car replacement benefit the key feature to compare against AA and Tower. AA offers the new car replacement benefit for vehicle less than a year old while Tower offers this for vehicles bought new and insured from new and while it is less than two years old. 

Overall, in our test example, Tower's policy and pricing comes out on top in our view.

To find out more about Car Insurance in New Zealand, check out our Full guide to Car Insurance in NZ or read more about What you need to know when buying your child a car.

Don't forget, you can use Quashed to do a quick quote and comparison of the benefits without the hassle of visiting multiple insurance sites and entering the same information multiple times. It's quick and easy with Quashed. It is also the digital home for all your insurance policies and information so you can see and manage it all in one place.

Sign up to Quashed today, it's FREE.

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