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Insurer AAA says Teslas are expensive to insure and is raising rates by as much as 30%

June 16, 2017

Think that semi-autonomous Tesla should be cheaper to insure?

by Allie Sanchez 05 Jun 2017
InsuranceBusinessMag.com

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.”

The report also said that other major insurers such as State Farm and Geico consider claims data as a significant factor in computing for premiums. The two companies did not disclose whether they will be increasing rates for their Tesla policy holders.

Click HERE to go to the online article.

Some of the Information that appears on this site is produced by Chartwell Insurance Services an independent insurance broker specializing in the personal asset protection of successful individuals. Other content is provided as a resource. The contents of all posts are informational only and Chartwell Insurance Services is not providing legal advice nor policy interpretation. If you have questions please direct them to a representative of Chartwell Insurance Services.