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Tesla Insurance Rates to Go Up by 30 Percent, the Company Calls Foul

 The Model S and the Model X are not cheap cars to buy and are definitely not cheap cars to repair. Of course, just like everything else in this world, that statement is also relative to what you compare those repairs to.
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It would appear the AAA has got that sorted out, and by compiling the data on claim rates from Tesla owners, it has come to the conclusion that they had abnormally high frequency and values. To be more precise, the Highway Loss Data Institute (HLDI) said the Model S was involved in 46 percent more claims than the average, and their cost was more than twice than average.

The figures were somewhat similar for the Model X, with 43 percent more claims in total and an 89 percent higher claim value than the average. These numbers have led the AAA to ponder raising the premiums for Tesla models by 30 percent.

Needless to say, Tesla does not agree with the decision and says the issue lies with the methodology. The company believes its products are not filed among the right type of competition, and considering the Model S was compared to vehicles such as the Volvo XC70, it's hard not to agree, at least in part.

Elon Musk's company told Automotive News that the analysis was "severely flawed and is not reflective of reality. [...] [The] Model S has the fastest 0 to 60 mph time of any production car ever tested by Motor Trend, and Model X has by far the best acceleration of any SUV. Obviously, it is false and misleading to compare them to a station wagon without explaining this discrepancy."

Tesla is essentially saying its cars are fast, and fast cars crash more often. If they were compared to Mercedes-AMG models and the likes, the company feels the results would not be so negative. Tesla also added that the "Model S continues to own the record for the lowest likelihood of injury for any car ever tested by NHTSA, and we expect Model X to receive the best score for any SUV ever tested,” even though that has no bearing on the matter at hand.

The Model S was classified as a large luxury vehicle based on HLDI's criteria which take into account size, weight, and competing models. If the first two are pretty straightforward, it's the third that will always leave room for interpretation.

As it stands, HLDI believes the Model S is up against the Volvo XC70, the Mercedes-Benz E-Class, the BMW 5 Series or the Audi A6. Tesla apparently thinks that performance should be a discerning criterion as well, just like passive and active safety features. The AAA, however, is not convinced, and Tesla owners might feel that in their next insurance invoice.


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