Tesla Vandalism and Skyrocketing Insurance Costs: What Drivers Need to Know
Cost of Tesla insurance remains high, could acts of vandalism lead to further increases?
With the surge of vandalism against Teslas, many drivers are left scratching their heads about the potential impact on their insurance premiums. While experts urge drivers to stay calm, it's essential to be aware of the potential long-term consequences.
Although an extended wave of vandalism may eventually result in increased insurance premiums, it's still too early to tell for certain. Insurance matters can be dense and complex, making it challenging to predict the future. Shannon Martin, a Bankrate insurance expert, suggested that Tesla drivers shouldn't worry about vandalism incidents today but should keep a watchful eye on the situation moving forward.
Insurance for Teslas has historically been pricier than similar classes of vehicles, whether they run on gasoline or electricity. The advanced technology and costly batteries in Teslas make them expensive to repair, driving up insurance costs. According to Insurify, a damaged Tesla costs around $1,300 more to fix than a gasoline-powered car, and these pricey repairs contribute to the high premiums Tesla drivers pay for comprehensive coverage.
Currently, the average premium for full coverage of a Tesla Model 3 sedan is $3,495 per year, while the premium for a Tesla Model Y SUV is $3,771. The premium for the Model X SUV is even higher at $5,459. For comparison, electric Ford F-150 Lightning pickup trucks cost an average of $2,942 to insure, which is slightly higher than the national average of $2,678 for all cars.
It's not surprising that out of the 50 most popular cars in the United States, the top four most expensive to insure are all Teslas. Incidents of vandalism could lead to higher premiums if there are more claims filed, but it would require numerous incidents to push premiums significantly higher or even lead to denied coverage.
Tesla drivers who've experienced vandalism will feel the impact first, but a sustained increase in attacks could affect the entire Tesla-owning community. Matt Brannon, a data journalist at Insurify, explained that insurers might decline to offer new policies to Tesla drivers in areas where vandalism is common, especially if the incidents continue. Alternatively, insurers could raise their rates to match the increased risk attributed to the vandalism.
While there is no precedent for a similar situation in recent history, the Kia Challenge serves as an instructive case study. A social media trend showing how to steal Hyundai and Kia vehicles led to a surge in thefts and vandalism, causing some insurers to stop offering policies for affected vehicles or to raise comprehensive coverage premiums.
Insurers responded differently to the Kia Challenge, with some refusing to insure impacted cars, while others simply wouldn't add comprehensive collision coverage to vehicles that didn't already have it. Ultimately, insurers first took the step of stopping writing policies for the affected vehicles, waiting for the situation to improve before reconsidering coverage.
As the situation with Tesla vandalism unfolds, drivers should keep a close eye on changes in the insurance landscape. Being informed and proactive will help Tesla enthusiasts navigate this challenging situation and make the most educated decisions when it comes to insurance coverage.
- The surge in Tesla vandalism could potentially lead to increased insurance premiums for Tesla drivers, approximating an additional $1,300 for repairs compared to gasoline-powered cars.
- If the vandalism incidents continue, insurers might decline to offer new policies to Tesla drivers in affected areas or raise their rates to match the increased risk, similar to the response to the Kia Challenge.
- Currently, the average premium for full coverage of a Tesla Model 3 sedan is $3,495 per year, making it one of the most expensive cars to insure out of the 50 most popular cars in the United States.
