National insurer AAA said the iconic carmaker's vehicles, particularly the Model S and the Model X are so costly to fix, and so easy to total that it's raising rates for Tesla Model S and X vehicles, according to Automotive News' website. TSLA stock is down less than 1% this morning. It compared Tesla's cars to other vehicles that "are not remotely peers", including a Volvo station wagon, the company said.
AAA's decision comes at a time where other insurance companies are preparing to reduce premiums for Tesla owners as the cars get safer with self-driving technology. Ptasznik said that "looking at a much broader set of countrywide data, we saw the same patterns observed in our own data, and that gave us the confidence to change rates".
AAA Insurance company has decided that Tesla owners should be charged higher premiums for their auto insurance.
That's where the original problem with insurers arose since they weren't differentiating the trims properly and charged P90D premiums for a Model S 85 for example. In this case, the Model S and Model X are categorized as "large luxury vehicles" - a class that also includes the BMW 5 series, Mercedes-Benz E class, Audi A6, and Volvo XC70.
Model X owners filed claims 41 percent more often compared to the average and repairs cost 89 percent more than the average insurance claim. The rear-wheel-drive Tesla Model S is involved in 46 percent more claims than average, and those claims cost more than twice than average, it said. For its part, Tesla disputes both the classification of its Model S performance sedan and Model X SUV and the fact that the Tesla Autopilot semiautonomous feature doesn't qualify for an insurance discount. In evaluating Tesla vehicles within their categories and to the overall population of vehicles, the report found the amount and cost of claims to be much higher than average.
Insurance for the Model 3 might share the same fate as the Model S and X when it comes out because of the similarities
The assessment came up when AAA looked into results of its own data which revealed higher claims per vehicle for Teslas relative to "comparable" vehicles.
"We expect Model X to receive the best score for any SUV ever tested", a Tesla spokesperson said.
Tesla responded to the report. "It's proven in the data". "These leading insurers also appreciate the added safety benefit of Autopilot".
Soon, Tesla owners may not have to worry so much about shopping for insurance companies, or discrepancies in rates.
Other major insurers such as State Farm and Geico said AAA's approach is a common way to calculate insurance premiums-number of claims and the cost of them-but did not say if Tesla customers would see premium hikes.