Tesla And Insurance Companies Disagree On Expensive Repairs
Reuters analyzed over 120 totaled Model Ys and found that a majority had less than 10,000 miles, with retail prices ranging from $60,000 to over $80,000. For insurance companies, the math doesn’t add up to repair them once the estimated cost is determined.
For example, one Model Y with front-end damage originally retailed at $61,388 but had an estimated repair cost of $50,388. And that’s where Tesla saw an opportunity.
Its in-house insurance affiliate launched in the summer of 2019 and offered supposedly 30% lower rates than competitors. It’s clearly catching on. Tesla’s CFO said during a recent earnings call that at the end of 2022, Tesla Insurance was selling premiums at an annual rate of $300 million and growing 20% quarterly.
“[This is] faster than the growth in our vehicle business,” he added.
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