Raising premiums won't win you fans.
It turns out that at least one major US insurance company, AAA, has problems with the Tesla Model S and Model X. Automotive News is reporting that AAA is raising insurance rates on both Tesla vehicles "based on data showing (both) had abnormally high claim frequencies and high costs of insurance claims compared with other cars in the same classes." AAA began to notice this issue from its own insurance statistics. It then cross-referenced its own data with that from the Highway Loss Data Institute, which confirmed what they suspected.
The latter’s data was compiled between 2014 and 2016, and it showed that owners of the Model S, which is categorized as a large luxury vehicle, reported collision claims 13 percent more frequently than the average of all vehicles. In addition, the claims are 50 percent more expensive than average. The rear-wheel-drive Model S variant, however, had 46 percent more frequent claims than average. The fact that repairs are more than twice as expensive than average also didn’t help. As for the Model X, it’s involved in 41 percent more claims than average and its repair costs are 89 percent higher than average. Ouch.
Of course Tesla quickly refuted the claims, stating "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." Other direct comparisons included the BMW 5 Series, Audi A6, Mercedes-Benz E-Class, Maserati Ghibli, Jaguar XJ, and the Lexus RC F. Tesla also said that the Model S has the lowest likelihood of injury, citing a National Highway Traffic Safety Administration crash test and report where it earned the coveted 5-star rating. At the moment, other major insurance companies haven’t followed AAA’s lead, but this could soon change.