Car insurance for Teslas is about to go through the roof
So you finally made it to the point in your life where you can purchase a Tesla as your primary vehicle. Good for you. They’re great for the environment and they surpass most, if not all, of the safety standards put forth by the government and consumer groups. Unfortunately, that doesn’t change the fact that you may be paying another arm and a leg for the insurance. AAA has come out and said they are raising the rates for insurance on the Model S and the Model X. So if the cars are so safe why are the rates being raised?
It comes down to the fact that in this case, Tesla is a victim of their own success. Their manufacturing process is so unique that not only are the parts prohibitively expensive, but so is the cost for specially trained mechanics. You can find many stories on the internet where Tesla owners ended up paying thousands upon thousands of dollars for something as routine as a blown tire. In AAA’s eyes this means even though the safety standard is high for Teslas, the cost of replacement parts is so astronomical it has to raise their rates to properly insure these uncommon vehicles. Other insurance companies are expected to follow.
Do you think AAA is making a cash grab by raising the rates of one of the safest vehicles of all time, or are they justified due to the costs of parts and labor even for the most minor of items?
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