Tesla Seems To Have Solved Its Insurance Problem

Tesla is proud of the fact that their vehicles boast some of the highest safety ratings on the market. What they don’t overtly advertise, is that in the even you do get into a crash with your Tesla the repair costs can be exorbitantly high. In fact, the repair costs for Teslas are so high that many people have seen their insurance rates double when they go to insure their new Tesla car. Luckily, the company is aware of this issue and recently announced plans that they hope will solve this insurance issue.

Even a simple fender-bender in a Tesla can easily run up five figure repair costs. This is due, in a large part, to the type of metal that Tesla uses to construct their vehicles. In the past, a typical car was made from steel–which is relatively cheap to manufacture and shape. Tesla actually constructs their cars out of aluminum. The aluminum in combination with part scarcity and a lack of manufacturer-approved repair shops all contribute to impressively steep repair costs. These high repair costs, in turn, lead to expensive insurance policies.

Tesla owner Elon Musk recently announced that the company will be working to fix this by integrating Tesla-owned body shops into service centers across the country. This will allow Tesla owners to repair their cars at Tesla shops, rather than relying on more expensive third parties.

Tesla seems to understand that bringing insurance costs more in line with their rivals is critical to the continued success of the company in the commercial market. It’s also worth noting that this isn’t the first time Tesla has worked to help mitigate insurance costs for its customers. Tesla actually worked directly with insurers to create the InsureMyTesla program. Hopefully that program in conjunction with these new body shops will result in significantly cheaper insurance options for Tesla owners.

Sources:
https://www.thestreet.com/investing/how-tesla-just-solved-its-insurance-problem-14613602