Tesla Model S Tops List Of Most Expensive To Insure


Car insurance rates are rising considerably and premiums for the Tesla Model S are higher than most cars.

From 2010-2016, auto insurance premiums rose some 33 percent and they’ve climbed even higher over the past few years. Many variables determine your car insurance premiums, such as age, driving record, and geographic location. However, the car you choose could have a drastic impact.

Insurance costs by vehicle, as well as claim frequency, are collected and reported by the Insurance Institute for Highway Safety (IIHS), which is a non-profit that’s funded via auto insurance companies. Its data reveals that insurance companies pay an average of $900 in claims per vehicle per year. Many vehicles fall in the ~$600 per year range, while others average claim costs that are over double that figure.

Financial news, commentary, and analytical website 24/7 Wall St. (per USA Today) pointed out today’s 25 cars that cost the most to insure. As expected, many of the most expensive rates were for large or midsize luxury vehicles. The more expensive the vehicle, the better chance it will cost you more to insure. The Tesla Model S is the most expensive car to insure on the new list, with average annual rates at $1,789.48 and average annual collision rates at $1,310.40. Please note that the source article specifics, “To avoid repetition, each model nameplate was listed only once, and the more expensive version to insure is always listed.”

Tesla vehicles are not only classified as luxury, they’re also all-electric (which pushes the price up further), repair costs are exorbitant, and then there’s the whole Autopilot situation. In some cases, we’ve heard that having Autopilot means an insurance discount. Less accidents and less chance of injury mean lower premiums. In other cases, insurers could expect higher premiums due to fear that drivers will not use the system properly or the technology could have the potential to fail.

Added to this, Tesla vehicles accelerate very quickly. Sports cars and other fast cars can be more expensive to insure for reasons similar to the above. If drivers don’t exercise caution and restraint or are unfamiliar with handling such power, it can lead to accidents.

Tesla is currently working with insurance companies in order to set up plans to curtail these high rates for its vehicles. We will be providing more information and specifics on that this week.

Keep the conversation going on our Forum. Start a new thread about this article and make your point heard.

Source: USA Today


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Tesla Model S Tesla Model S Tesla Model S Tesla Model S Tesla Model S Michael's Tesla Model S Tesla Model S Tesla Model S, Image Credit: Tesla Tesla Model S Tesla Model S, Image Credit: Tesla Tesla Mode Tesla Model S Tesla Model S Tesla Model S Tesla Model S P100D Inside the Tesla Model S, Image Credit: Tesla Tesla Model S Interior, Image Credit: Tesla Inside a Tesla Model S

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28 Comments on "Tesla Model S Tops List Of Most Expensive To Insure"

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“Tesla is currently working with insurance companies in order to set up plans to curtail these high rates for its vehicles…”.

Yeah, I’d do the same thing if cost to insure is $1800 per year. That HAS to figure into the vehicle costing.

Wow, 1800 is a huge number… For wife and I with 3 personal vehicles and 500K/1m liability limits, and 250 deductibles for comp/col we are at 2K per year.

Not sure what they can do, though. The highest cost is collision insurance and that’s just because the cars are super expensive to repair.

If they were cheaper to repair, then the insurance would drop considerably. Or they make AEB good enough, so that the cars can’t crash anymore.

Yes, and Tesla’s due to their high repair cost are easily totaled (full write off).

Any data yet on costs to insure a Tesla Model 3?

They appear to total-out just as easy. So, my guess is high. This has been a subject with Tesla, from the beginning. A long time ago, you’d even give the “up start” slack. Now, it’s more like increased premium/payout funded unit sales, after cars get “totaled”. Sad, IMO. Body shops, who are about the only non-vertical element in Tesla’s support structure, have been complaining about systems access so they can be sure to order parts that haven’t been super ceded (and won’t be stocked and will add time, on top of money to repair). One of the only reasons Rich Rebuilds works is because there is so much arbitrage value in parting out discounted totals. Drive units and battery modules, alone, can recoup 10-15k. It’s a story most don’t understand. Most don’t know how much “laundering” of salvage titles takes place, with normal cars (meaning other cars eventually can lose the *salvage* mark and sell clean). Perhaps for the better, Tesla keeps a black-ball on any car that was ever totaled and that makes bidding on its salvage vehicles fall down towards parts cost. Then, the attachment to guys like WK057 and ingineer begines, as those who do end up… Read more »

Just read statistics on BEVs and PHEVs, and they are 20% more likely to be in an accident – compared to a standard diesel car, and the cost of the accident is 50% higher.
The insurance company stated that increased power, compared to a regular car was the reason. Much quicker to pick up speed, and more speed = more accidents.
At the same time, the chance to be hurt in an accident is 40% lower in a new car (EV or ICE) compared to a 10 year old car.

Why would you vote this down. Oh wait you have alternative facts.

There’s a huge difference in price between a base model S and a P100D. Naturally the more expensive the car, the more expensive to insure. So what is the average price that they are referencing?

You are correct to ask !
According to the Insurance Institute for Highway Safety, they do the following:
“To avoid repetition, each model nameplate was listed only once, and the more expensive version to insure is always listed.”

Thank you. Great question and reply. I added it to the article.

Ah! Well that makes a significant difference. So it’s not actually the Model S in general which is “the most expensive to ensure”, it’s the Model S P100D which is.

Is this true? With other cars the most expensive version is often cheaper to insure because the people buying it are not crash prone.
It is often the most economical to buy version that ends up the most expensive to insure.

So shat this really says is that cars with supercar performance are expensive to insure!

Thats not true… Corvette incl the ZR1 is fairly cheap to insure

Only cost me just over a $1000 a year to insure my X PDL with liberty Mutual. A lot of insurance companies have EV Discounts. This stat seems a bit suspicious to me.

yes Liberty Mutual offers huge discounts for Evs anyone who has any EVs I suggest u call for quote. my FFE was only $375 a year for a 500k liability and full coverage.

Well, as you can see from comments above, it’s not every Model S/X, it’s specifically the Model S P100D which is the most expensive.

But a great deal depends on where you live. If you live in a rural area in a sparsely populated State, you’ll pay far less for car insurance than if you live in an urban area in a megacity. Lower population density equals fewer accidents per mile.

“The Tesla Model S is the most expensive car to insure on the new list…”

Ouch! Well it does make sense, with Tesla’s high performance reputation attracting a higher percentage of drivers who tend to drive recklessly, plus the high repair cost for body work on an all-aluminum body.

Seems like it has been a year or two since IEVs ran an article from some insurance industry analyst or insider claiming that Tesla cars would actually be less expensive to insure, given their high ratings for safety. But I guess that turned out to be naive.

Also don’t forget that the majority of Tesla’s sold are in California with its infamously high insurance costs.

I am not sure performance explains the high cost, because Corvettes are fairly cheap to insure, less then my diesel pickup actually. When I had my Z06, it was the cheapest car for insurance that we had. I think the Model S is expensive to insure because of the high repair cost even in minor accidents.

A breakdown of cost for collision (fixes your car when you are at fault), liability and property damage (covers you for damage to other cars and people caused by you) and comprehensive (vandalism, theft, acts of nature) would be interesting.

Because of how Tesla handles parts, recertification and unknown electric components. A Tesla is far more likely to be totaled then risk a repair being drawn out.

Insurance costs vary, just look for another insurance provider and you’ll be ok

No news here a luxury car is more expensive to insure period CONNECT THE DOTS ON CLEAN AIR WAKE UP FOLKS

Tesla never claimed the “S” is a luxury car. The few I have test driven certainly were not.

6 years later, the myth that Model S is cheaper to insure due its high safety rating is no longer true…

There is NO way that an expensive car (typical selling price of $100K) would be cheap to insure. Unless they can show that it somehow magically have lower accident rate (no such data to back up that claim).

Got a quote from current insurance company Farmers for $2400/yr for Tesla S 75d; then checked with others and got insured with Progressive for $1000. Bundled with them and saved about $1500 with everything. Tesla not luxury, ride is stiff and very hard to get in and out for 68 yr old farts.