The Facts About Tesla
In 2003, the engineers that founded Tesla decided to create an electric car the exceeded the capabilities of the normal gasoline cars on the market. They wanted to prove that electric cars could outperform them in speed and quality, plus be a fun car to drive. Every vehicle this company produces is all-electric, and eventually, Tesla hopes that other car makers and energy companies will follow their lead, bringing about a zero-emission world for everyone.
Buying a Tesla
If buying a Tesla is on your mind, you have a rather easy decision ahead of you. This company only makes four different models. Because everyone is an electric model, no matter which one you pick, it will be a green choice.
The Model S is their sedan, designed for safety as well as speed. For the safety part, this car comes with Autopilot capabilities for a stress-free drive. And for speed, it goes from 0 to 100 km/h in less than 3 seconds. It is also the cheapest one of Tesla’s cars at the moment.
The Model 3 will be a more affordable car than the Model S. The design is smaller and simpler. And like the Model S, it is designed for safety. Unfortunately, this one isn’t available in Canada just yet. The US deliveries are underway but Canadians won’t be able to get their hands on one until the summer of 2018.
If an SUV is more up your alley, the Model X may be the car for you. This all-wheel-drive vehicle can seat seven people and has plenty of room for everything else you need. And for speed, it only takes 3.1 seconds to reach 100km/h. Tesla can also boast that this model was the world’s first electric SUV.
The Roadster is built for speed. It’s acceleration, performance, and range has set world records. With a top speed of over 400km/h and acceleration that reaches 100km/h in 2.1 seconds, there are few reasons to take it slow. The all-wheel-drive Roadster seats four, so you can still fit your family in when you head out on the road. But this flashy sports car comes with a high price tag, well over double the cost of the more modest Model S.
Why is Tesla Insurance so Expensive?
There is one main reason why insurance for a Tesla is so expensive. This is because companies insuring these cars have the wrong trim level listed in their policies. The issue started with the Model S. A simple error like listing the Model S 90D as a Model S P90D adds a significant amount of money to your insurance costs each month.
But this issue is now getting worse because of the fact that insurers have decided to bundle up all the data on Model S vehicles. This places every one of these cars into the same category and compares them with vehicles in other categories.
This isn’t fair to Tesla owners because of the wide range of configurations their cars offer. For instance, the Model S ranges from a 40 kWh to an 80 kWh battery pack. They also offer the performance of a super-car with their P85D, P90D, and P100D model options.
The reason this is so unreasonable is that the basic Model S 40 has different performance and capabilities of the P100D. This is not only proven when you’re behind the wheel but shows up in the price of the car. The latter one is well over twice the price of the more basic models.
Other Insurance Issues
Along with this original insurance issue, there is another equally strange problem Tesla owners now have to contend it. AAA has raised insurance rates on Tesla cars because they claim the Model S and Model X vehicles have quite frequent and high-cost insurance claims. This is believed to be the case when both models are compared with other cars in their classes.
The reason for this is because of a Highway Loss Data Institue report. This report covered 2014-2016 model years. It stated that the vehicles in question were all divided by size, weight, and competing models. In Model S and Model X categories, more claims were filed, often at higher than average amounts.
Tesla disputes these claims for one specific reason. They state that the cars in categories with their own models can’t be considered peers. Tesla claims that because of the higher speed and acceleration their cars use, they shouldn’t be in the same category as normal station wagons or other lesser performing vehicles.
Tesla cars also contain many safety features, such as the Autopilot. This adds to the reasons why Tesla believes insurance costs on their cars should be lowered. They’ve even instituted their own insurance products. By working with well-known insurance companies, Tesla can gain more control over their customer’s coverage.
Electric Car vs Gasoline Car Insurance
When you’re buying an electric car, you’re probably thinking about saving the planet and saving your wallet from the high gas prices. But other costs must factor in. If you buy electric, you’ll pay more in insurance.
Though risky driving is the main factor insurance companies look at, there are a few other reasons why electric cars cost more to insure than gas models. First, you pay more for electric cars like the Tesla. The more the initial cost is, the higher the cost will be to replace it.
If you get into an accident, finding someone to repair your electric car may be hard to do. This technology is still new, so it is likely only a dealer will have the knowledge to fix one. And dealers tend to charge more for their repairs than other privately run garages. Another issue is parts. Because this technology is relatively new, they will be harder to get. This requires higher delivery costs added onto the cost of the part itself.
Eventually, as these cars become more common, these issues will correct themselves. But for now, the higher insurance costs will stay a part of the package.
About the Author: Ashley Miller
