10 Reasons Why Tesla S Insurance is Too Expensive

 

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The all-electric luxury Sedan we all love - the Tesla S - is seemingly hated by the insurance industry.

People all over the US complain about high rates despite no claims in the past. The Tesla is the

  1. best
  2. safest
  3. most secure

car - it can't even get stolen.

What's wrong with the insurers then? Here are 10 reasons why the insurance companies are wrong in making the Tesla experience so expensive for drivers and their families.  

The Best Car

The Tesla S is the best car according to Consumer Reports - twice! See Consumer Reports. Why would someone want to punish drivers for choosing a high quality car known to be reliable?

Why does the insurance industry penalize the smartest choice then?

The Tesla is not only an exclusive car for the chosen few that abides by high standards due to its price. It's a popular high-class vehicle for the moderately wealthy as well. Via TreeHugger.  

The Safest Car

Did I mention that the Tesla S is the safest car ever according to official data? See Bloomberg Business. Likewise the new Tesla X has been proclaimed to be the safest SUV ever by Tesla CEO Elon Musk as Dezeen Magazine reports among many others.   

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Theft is (Almost) Impossible

You can't steal the Tesla - that is you can - only to get caught.

When you manage to steal a Tesla, here it was more of an accident, you won't get far because the owner can track your whereabouts via an app. Isn't this a dream technology for insurers?  

Exclusive Service

Tesla repairs its cars exclusively, that means no DIY mechanics will tinker with the high-tech and thus quality is ensured. Why would insurance companies have a problem with that? It's only the short term cost of fixing the Tesla probably in case of an accident.

Nobody seems to take into account the low likelihood of the vehicle breaking down again due to poor work for cheap. In some cases insurance companies rather declare a Tesla S with minor damage a "total loss". See CleanTechnica. Sounds absurd to me.   

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Excellent Support

Some people actually complain about the inability to let a mechanic of their choice to fix Tesla issues. Yet the Tesla support excellent and replaces broken parts of for cheap or even free in some cases as a Tesla owner reports.  

Entry-level Supercar

The Tesla with it its new "ludicrous mode" is actually a supercar in disguise because it accelerates at such a tremendous pace. This is basically one of the biggest advantages of electric cars. They don't have to warm up before acceleration. They run faster instantly when you hit the "gas" pedal.

Why does instant speed make Tesla safer?

Just think passing other cars. The faster you overtake them the less risk of hitting a car approaching from behind on a highway or one approaching from the other direction on regular roads. That's probably also why the LA police department has decided to use Tesla S for law enforcement. Even older Tesla Sedans without "ludicrous mode" are actually faster than most other high performance vehicles including sportscars.    

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Made in USA

The Tesla is not only a car designed in the US, it's also manufactured in the US. It's not one of the fake American brands that claim to be American but exploit teens overseas in Asia. Think brands like Nike or Apple which even increasingly outsource design tasks to Chinese subcontractors.

All their products are actually made in sweatshops where labor is the cheapest and democracy the weakest. Do US insurers really favor German and Japanese cars when it comes luxury sedans? We have seen what happens when Americans trust "green" cars from Germany thanks to the VW scandal.  

Not State Supported

While the traditional automakers like Ford, GM or Chrysler are "too big to fail" and basically subsidized but the state - otherwise they would have gone bankrupt after the financial crisis -

Tesla is an American success story of bold entrepreneurship.

Why would insurance companies prefer car manufacturers that can go out of business any day without being "rescued" by the government? What happens to cars already owned and insured once there are no official replacement parts made anymore?   

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Just the Beginning

Tesla has offered three cars until now:

  1. Roadster
  2. S (Sedan)
  3. X (SUV).

These cars are still pretty expensive and cater to special interests. Soon there will be more affordable Tesla models on the market. Tesla will go mainstream with affordable models. At the same time

car manufacturers all over the world frantically attempt to catch up. Just think Porsche, Audi and the likes.

Obviously the Tesla S is just the first and most prominent example of a huge wave of electric vehicles to populate the streets in the future. Does the insurance industry have any interest in stifling that progress? Forget hybrids and low range electric cars of the first generation.  

Future Innovation

Insurers are too conservative, only focusing on the past. Electric cars represent the mobility of the future. You can't just rely on obsolete data and legacy approaches. It's about time to adapt to modern cars and technological innovation.

Gas-powered cars will soon be extinct just like the steam-engine when it comes to trains.

Why stifle innovation and stick to hazardous engines proven to cause all kinds of health hazards including cancer? Insurance companies need to rethink their priorities and embrace a holistic approach to future technology when it comes to mobility and beyond.  

* Tesla S courtesy of Tesla Motors

** (CC BY 2.0) Creative Commons image by cdorobek

*** (CC BY-SA 2.0) Creative Commons image by Al Abut

**** (CC BY 2.0) Creative Commons image by Maurizio Pesce

***** (CC BY 2.0) Creative Commons image by raneko