AAA To Raise Insurance Rates On Tesla Vehicles

If you are a member of AAA insurance and own (or plan to own) a Tesla vehicle, then we have some bad news for you. According to a report be NBC News, AAA plans to raise its auto insurance rates on Tesla vehicles by as much as 30 percent in the coming months.

AAA is planning its rate hike based on a claim that Model S and Model X vehicles have a higher than normal rate of claims, and a higher than normal cost for claims when compared to other vehicles in the same classes. This data was culled from AAA’s own data and also data compiled from various other sources. Other insurance companies such as State Farm and Geico stated that claims data is a major factor in calculating premiums, but failed to mention whether or not they would raise Tesla owners’ premiums.

Anthony Ptasznik, chief actuary of AAA stated:

“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.”

Russ Rader, a spokesperson for the Insurance Institute for Highway Safety added:

“Teslas get into a lot of crashes and are costly to repair afterward…Consumers will pay for that when they go to insure one.”

The Institute also claims that the Tesla Model S is involved in 46 percent more claim than average and that those claims cost more than twice the average (mostly likely due to Tesla’s high repair costs). Model X owners filed 41 percent more claims than average and those claims cost 89 percent above the average cost.

Tesla, however, disputes this claim:

“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 Model S is classified as a large luxury vehicle, which also includes the Volvo XC70, Audi A6, Mercedes-Benz E-Class, and BMW 5 Series.


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