Vandalism Concerns Grow for Tesla Owners
Incidents of vandalism targeting Tesla vehicles are on the rise, coinciding with increased scrutiny of CEO Elon Musk’s actions.
Insurance experts caution it’s too soon to fully assess the impact, but the trend warrants observation.
“It isn’t something drivers need to be worried about happening today,” says Bankrate insurance expert Shannon Martin. “But it is something they need to keep their eye on in the future, especially potential Tesla owners.”
Insurance costs for Teslas have historically been higher compared to gasoline-powered vehicles, and even other electric cars. One factor is the advanced technology and expensive batteries used in Teslas, according to Insurify, which compares U.S. insurance rates for consumers. Repairing a damaged Tesla can cost about $1,300 more than repairing a gasoline-powered car. This contributes directly to higher premiums.
According to Bankrate data from this month, the average premium for full coverage of a Tesla Model 3 sedan is $3,495 each year. For a Tesla Model Y SUV, drivers pay about $3,771, and for the full-sized Model X SUV, a premium runs $5,459. By comparison, it costs approximately $2,942 to insure the electric Ford F-150 Lighting pickup truck, higher than the national average of $2,678 for all cars.
Insurify reports that Teslas are the most expensive cars to insure out of the 50 most popular vehicles in the United States. Higher insurance rates or even denial of coverage could result from an increase in vandalism claims. Currently, these incidents appear sporadic and anecdotal, with reported cases in the Pacific Northwest, Northeast, and other areas across the country. Drivers whose vehicles have been vandalized will likely be the first to feel the impact.
Complexity of Car Insurance
Multiple factors influence car insurance premiums, including the vehicle’s make and model and whether it is regularly parked outside. Vandalism plays a role, but collisions and a driver’s history often have a greater effect, according to Matt Brannon, data journalist at Insurify.
Vandalism is less likely to affect third-party liability or collision coverage as these do not involve collisions with other vehicles. Comprehensive coverage is the most likely to be affected.
Brannon says insurers encountering higher and sustained instances of vandalism could choose to decline offering new policies to Tesla drivers, especially in areas where vandalism is frequent.
“They either resume writing those policies once vandalism has declined, or they can raise their rates to equate with the heightened risk that is being attributed to this vandalism,” Brannon stated.
“I am not aware of any insurers that have so far stopped issuing policies to Teslas,” says Mark Friedlander, media relations director at the Insurance Information Institute.
Tesla offers its own insurance, but those rates are not publicly available, and the service is only available in 12 states. Insurance policies are typically renewed every six months, which is when insurers can choose to renew the policy or adjust the premium.
Precedent
A similar situation previously arose due to a social media trend. A TikTok challenge showing how to steal Hyundai and Kia vehicles led to a more than 1,000% increase in thefts of Hyundai and Kia models between early 2020 and the first half of 2023. While the automakers released anti-theft software updates, many insurers refused to cover the vehicles.
Bankrate’s Martin noted a variety of responses from insurance companies. Some opted not to insure affected cars, while others declined adding comprehensive collision coverage to vehicles that didn’t already have it. Brannon said the initial step taken by the majority of insurers was to stop writing policies for these vehicles.
CNN reached out to Tesla, Geico, Allstate, and State Farm for comment on Tesla insurance rates.
