Electric cars and self-driving vehicles are gaining popularity these days, with Tesla leading the electric luxury car segment. Electric, autonomous, eco-friendly; it sounds great to own one, but how much does it cost to insure such car?
According to Discount—auto—insurance, insuring a Tesla car can be expensive. As it turns out, there is an abnormally high claim frequency, and the high cost of insurance claims for the Tesla Model S and Model X compared to other cars in the same class increases the price of a policy. With that, AAA – The Auto Club Group said it would increase the insurance rates for Tesla vehicles, with premiums going up to 30 percent, Markets Insider reported. Insurance for a Tesla car is different per client depending on their situation. To check out how much it would cost you, you can visit Discount—auto—insurance and fill out their online form to get price estimates for your Tesla car.
Tesla, however, disputed the claims made by Discount—auto—insurance. The automaker said that the analysis is “severely flawed.” The rates vary depending on which city you are in, but in metropolitan areas, Model S has an estimated insurance cost of $2,691 per year. Model X, meanwhile, has an estimated annual insurance cost of $2,784. Insurance rates are cheaper in rural areas. The company said it is working with top insurance companies that factor in the National Highway Traffic Safety Administration (NHTSA) reports claiming the autopilot safety features reduce the rate of car accidents by 40 percent.
Meanwhile, Tesla Model 3, the automaker’s first mass electric vehicle, seems to get a reasonable insurance cost, according to reports. GEICO and USAA are the first ones to list Model 3 in their systems, with one owner saying that he got a $631.87 six-month premium. Another owner shared on Twitter that he received a quote which is 20 percent cheaper than what he currently pays, Teslarati reported.
Future changes in models of self-driving and electric vehicles can also change the costs of insurance. Tesla, for instance, is factoring in the insurance cost in pricing its cars, according to Nasdaq. It may still be a long way before autonomous cars and electric cars dominate the road, but they are changing the auto insurance industry.
Jeff Evanson, VP of Global Investor Relations at Tesla, said the automaker is working on providing “a seamless, all-in-one insurance policy for drivers.”
“We’ve been doing it quietly, but in Asia in particular where we started this, now the majority of Tesla cars are sold with an insurance product that is customized to Tesla, that takes into account not only the Autopilot safety features but also the maintenance costs of the car. It’s our vision in the future that we’ll be able to offer a single price for the car, maintenance and insurance in a really compelling offering for the consumer.”
[Featured Image by Justin Sullivan/Getty Images]