Tesla Owners Face Vandalism, Rising Insurance Costs

Tesla Owners Targeted Amidst Vandalism Concerns

Tesla drivers are finding themselves caught in a wave of vandalism, raising concerns about rising insurance costs. The vehicles, showrooms, and charging stations have been hit with incidents of vandalism, gunfire, and suspected arson in recent weeks, according to reports.

![Tesla owners have faced vandalism and harassment in recent months.

Some owners have reported their cars being graffitied and egged. The damage has been significant, with two Cybertruck owners reporting thousands of dollars in damages after items were thrown at their vehicles during a New Orleans parade. These incidents have prompted some Tesla owners to sell their vehicles out of fear. Those who remain may face increasing insurance expenses as providers respond to the rise in vandalism.

Average insurance premiums for Tesla vehicles already surpass those of competitors. Data from Bankrate indicates that the average premium for full coverage car insurance on a Model 3 reached $3,495 in March, a $101 increase from January, compared to the national average of $2,678. The cost of covering a Model Y, Tesla’s best-selling vehicle, was $3,771 in March, while Model X premiums increased by over $300 within three months, reaching $5,459.

These premiums are considerably higher than those for other electric vehicles and hybrids, including the Chevy Bolt, Toyota Highlander hybrid, and Ford F150 Lightning, according to Bankrate’s data. Premiums for Model Y and 3 vehicles have increased by 29% and 24% over the past year, respectively, compared to a 10% increase for the average U.S. vehicle, as shown by separate data from Insurify.

Shannon Martin, an insurance analyst at Bankrate, explained that the rise in insurance rates reflects losses from 2024 rather than any recent surge in vandalism. However, she added that insurance buyers should anticipate rate hikes in the coming year if the issue continues. “I would expect if this keeps happening at this rate, definitely by 2026 renewals, people will start seeing a change, maybe as soon as toward the last quarter of 2025,” said Martin.

Martin drew a comparison to the 2023 “Kia Boys” incident, which caused insurance providers to increase premiums or deny coverage for Hyundai and Kia vehicles due to a rise in TikTok-inspired thefts. High insurance costs have been a longstanding concern for Tesla owners, prompting the company to launch its own insurance provider in 2019.

Martin noted that the average insurance premiums for a Model 3, Tesla’s budget model, were closer to those of luxury vehicles like BMWs. The company’s high-profile new customer, President Donald Trump, summed up the reason behind the high insurance costs: “everything’s computer.” “Tesla has a lot more cameras, a lot more computer chips than most other electric vehicles on the market,” said Martin. She concluded that “They have cameras not just on the inside of the vehicle but also on the outside of the vehicle. So even a small fender bender would create very expensive repairs for the Tesla owner and the insurance company.”

Tesla has not yet commented on the matter.