If you think buying a Tesla is pricey, wait until you see your insurance premiums. Automotive News says AAA – The Auto Club Group is jacking up rates for all Tesla owners, no matter how good their record is. The reason is two-fold: the company found Teslas have a higher frequency of insurance claims, and that fixing them is especially expensive.
Tesla doesn’t like this news. The company denounced AAA – The Auto Club Group’s findings, saying the are “not reflective of reality.” The California automaker was irked because the insurance company dared to compare its Model S and X to lower vehicle forms, like a Volvo station wagon of all things!
The fact is AAA – The Auto Club Group has a solid track record, plus a stellar reputation. It acknowledges that the Teslas were compared to vehicles which aren’t in the same class, but that it scoured other sources of data, like the Highway Loss Data Institute to compare its findings. Even with the Teslas compared to more comparable vehicles, they still cost more to repair, and have a higher claims frequency.
Don’t be surprised to see other insurance companies follow suit in the near future. This latest development just confirms that Teslas are playthings of the rich. Before you think the Model 3 will be a vehicle for the masses, the word on the street is the average one will run about $50,000. Combine that with high insurance rates, and it won’t be something your average Joe drives.