Insurance company

Elon Musk vs. Warren Buffett: Insurance company won’t pay for Tesla’s $2,000 repair – Tesla (NASDAQ: TSLA)

Geicoproperty of Warren Buffett’s Berkshire Hathaway BRKABRKBrefuses to pay for damages that one of its insured drivers has caused to a Tesla Inc. TSLA vehicle.

What happened: Tesla owner Jeff stopped his vehicle to let an ambulance pass. The ambulance rammed Jeff’s Tesla.

“It (the ambulance) hustled us,” he said. “We have State Farm insurance and [the ambulance driver] has Geico insurance.”

An officer who witnessed the accident, Jeff, the owner of Tesla, claims.

When Jeff made an appointment to have his car repaired with an authorized Tesla body shop, the estimate to fix the damage was $2,000.

The body shop informed Jeff that Geico would not pay the rates to repair the vehicle, and there is a significant rate difference between the prices Tesla charges for parts and what Geico covers.

“He said, ‘You can use State Farm, you can pay cash, or you can find another repair center, but I have to tell you, all of us who are authorized Tesla repair centers in the valley, we’re grouped together because we’re trying to fight Geico.

Jeff has been in contact with a Geico fitter who he hopes can resolve the issue.

“He said, ‘You go ahead and file it with State Farm and you don’t have to pay your deductible. As soon as you file your claim there, put your car in and ask for your deductible, they will contact me and I will transfer the deductible. We are 100% responsible for the accident.

Despite the solution, the car will not be repaired until December 12, 2022. Why? Tesla certified body shops are reserved and Geico takes the time to find a solution to the repair.

See also: You have to make cars people want: Warren Buffett on Elon Musk and Tesla

Why it matters: The story illustrates how insurance companies criticize Tesla’s use of authorized body shops and the costs of parts and labor.

While Geico is working with this customer, it comes with a delay in repairing the vehicle.

Meanwhile, Buffett showed his support for the CEO of Tesla Elon Musk and electric vehicles.

Tesla also entered the insurance market with a plan to reduce costs for Tesla owners and non-Tesla owners. Tesla Insurance is currently offered in Arizona, where Jeff resides, as well as California, Colorado, Illinois, Maryland, Nevada, Ohio, Oregon, Texas, Utah and Virginia.

The electric vehicle giant uses real-time driving behavior for insurance with a mission to cut costs and determine a price based on “the vehicle you drive, your address provided, how much you drive, the coverage you select and monthly vehicle safety score.”

According to Tesla’s website, customers can save between 20% and 40% on insurance, and the safest drivers could save between 30% and 60% over their competitors.

Jeff recalled his story to Teslarati and the Wham Baam TeslaCam YouTube channel (it will post an updated look at his story on Sunday, October 2, 2022).