Citing Crash Rate, AAA Raises Insurance Rates for Tesla Owners

The report suggests the rear-wheel drive Model S is involved in 46 percent more accidents than average, while repair costs are over 50 percent higher than the industry average.
June 5, 2017

June 5, 2017—Citing a report from the Highway Loss Data Institute (HLDI), AAA argues Tesla cars crash more often than average and are more expensive to repair, according to Left Lane. Thus, AAA has made it more expensive to insure a Tesla Model S or a Model X.

After examining the HLDI report, AAA concluded Tesla cars crash more often than comparable models, and they're considerably more expensive to repair. The data covered cars from the 2014, 2015 and 2016 model years.

The report suggests the rear-wheel drive Model S is involved in 46 percent more accidents than average, while repair costs are over 50 percent higher than the industry average. Those percentages check in at 41 and 89 percent, respectively, for the Model X. As a result, Tesla owners insured through AAA will soon see a 30 percent hike in insurance rates.

Tesla re-iterated that the Model S is one of the safest cars on the market, and criticized how the insurance company analyzed HLDI's data.

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