Tesla Insurance Rates Set To Spike As Cars Become Vandalism Targets

Tesla owners could soon start paying higher insurance premiums because of Elon Musk's political antics.

Tesla Vandalism Hero

Photo by: Tesla

Rob Stumpf

By: Rob Stumpf

Mar 17, 2025 at 3:10pm ET

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Tesla is already one of the most expensive automotive brands to insure.
Insurers warn that rates could soon go up as activists are vandalizing Teslas over CEO Elon Musk's political meddling.
Owners have no recourse short of selling their cars.

Tesla owners, brace yourselves. Your insurance premiums could soon be even more expensive. No, it's not because parts suddenly got harder to find. It's because owning a Tesla in Elon Musk's DOGE era is now riskier than it was just six months ago.

Recently, Tesla owners have found themselves to be the target of vandalism. We're talking about cars being spray-painted, set on fire, having windows shattered and even being shot. And all of it is seemingly pointed back to Tesla's controversial CEO, Elon Musk.

2025 Tesla Model 3 Performance (Euro-Spec)

Photo by: Andrei Nedelea

Tesla vandalism isn't exactly a new phenomenon. It's a tale as old as Tesla and has been so prominent across the brand that it spawned popular YouTube channels like Wham Baam Teslacam which showcased folks keying the cars even before Elon Musk started down his political path. But now, the vandalism isn't targeted at the owners of the cars—it's aimed at getting a message across to the company's CEO, who isn't exactly readily available for a nice quick chat.

So why does this matter for insurance rates? Well, damage to cars likely means a comprehensive claim against the driver's own insurance. And insurers typically respond to increased claims by raising rates for the risk pool (which, in this case, is anyone who owns a Tesla).

If vandalism claims involving Teslas continue to rise, even responsible Tesla drivers who have never even received a speeding ticket could see their insurance rates skyrocket simply because their cars have become a target.

A new report by Newsweek outlines the specifics:

"If vandalism involving Tesla vehicles continues to rise and doesn't go back down, we could see rates rise for comprehensive coverage in the future," [said Matt Brannon, a data journalist at Insurify.]

[Bankrate insurance analyst Shannon Martin] explained that when carried, vandalism is covered by the comprehensive portion of an auto policy. While vandalism claims typically don't increase insurance rates as much as collision claims, they can impact rates, she explained.

Tesla drivers aren't going to be happy if their insurance rates go up. It's the most expensive premium car brand to insure according to CarEdge, falling just behind Rolls-Royce, Lamborghini, Bentley, McLaren, Maserati, and Aston Martin.

That's kind of nuts to think about—little ol' Tesla punching at insurance rates comparable with luxury cars that cost as much as a house.

The average annual cost of full-coverage insurance for a Tesla Model 3, according to Insurify's data supplied to Newsweek, is $353.50 per month. That's nothing to shake a stick at—in fact, you can lock in a 72-month loan on a brand new 2025 Nissan Sentra for a lower monthly payment. Should insurance rates continue to climb, it could make Tesla ownership untenable for many drivers who could own something more luxurious for less money overall.

Here's more:

"Tesla Model 3, Model Y, and Model X are the most expensive EV to insure as of February 2025," he confirmed. The cost of full-insurance for a Tesla Model 3, according to Insurify, increased 30 percent last year, to $4,362 annually.

"This is 25 percent higher in cost than the comparable Mercedes Benz A-Class. The annual average cost of full-coverage auto insurance for the Tesla Cybertruck reached $3,813 in 2025," Brannon added.

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So what can owners do in this circumstance? After all, it's not like part prices skyrocketed overnight and it's no fault of their own that their cars have become the target of vandals. If you ask activists, the answer is simple: sell your car. But in reality, for anyone interested in hanging onto their vehicle, the answer is a resounding "Not much."

What do you think?

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Comments

The entire situation smells of the whole Kia Boys debacle where a car company's unfortunate mistake led to owners paying the price. In that case, many Hyundai and Kia vehicles became completely uninsurable by some providers, leading to a class action settlement with the automaker over insurance premium increases.

Realistically, Tesla owners who want to continue to be Tesla owners better buckle up. As protests against the automaker continue and vandals target both Tesla equipment and privately-owned cars, things could get worse before they get better—at least while Musk lives a double-lift as part-time CEO and part-time head of state.

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