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Should Tesla cars be cheaper to insure?

Should Tesla cars be cheaper to insure? | Insurance Business

Should Tesla cars be cheaper to insure?
Tesla may tout its vehicles as safe, but an insurer thinks otherwise.

Insurance firm AAA is raising rates on Tesla cars by as much as 30% based on data showing that the carmaker’s two luxury models had more claims and cost more to repair.

A report by trade publication Automotive News said that AAA is basing its rate hike on data from the Highway Loss Data Institute. 

According to the institute, Model X owners file for claims 41% more often than the average car, and that these claims cost 89% more than the average.

Meanwhile, the Model S was reportedly involved in 46% more claims than the average and that these claims cost at least twice as much as the average.

The report said that AAA saw the data as an anomaly. “Looking at a much broader set of countrywide data, we saw the same patterns observed in our own data, and that gave us the confidence to change rates,” Anthony Ptasznik, AAA chief actuary told the News.

However, Tesla questioned the parameters for the data saying in an emailed statement to the publication that “This analysis is severely flawed and is not reflective of reality. Among other things, it compares Model S and X to cars that are not remotely peers, including even a Volvo station wagon.”


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