US insurer hikes Tesla premiums due to ‘higher-than-average’ claim rates

National insurer AAA is raising its prices for Tesla’s Model S and Model X, citing higher-than-average claim rates and repair costs for the two cars. According to a report from Automotive News, AAA said it could raise its premiums by as much as 30 percent for the vehicles. Other large insurers including State Farm and Geico told the publication they couldn’t say whether or not they would also increase prices, but noted that data about claim frequency is always used to calculate insurance premiums.

Tesla itself disputes the move, saying the AAA has made its decision based on faulty information from the Highway Loss Data Institute. A spokesperson for Tesla told Automotive News: “This analysis is severely flawed and is not reflective of…

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