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Because less maintenance? I don't see the logic here. Does AAA have something to gain by requiring anyone to pay more insurance?
by Overtonwindow 9y ago
Because less maintenance? I don't see the logic here. Does AAA have something to gain by requiring anyone to pay more insurance?
- hkmurakami 9y agoThey have a major auto insurance operation.
- rory096 9y agoBecause "Model S and Model X had abnormally high claim frequencies and high costs of insurance claims compared with other cars in the same classes." AAA is the insurer — they obviously directly gain from increasing premiums (all else being equal) and lose when premiums are lower than the insured risk.
- tptacek 9y agoAuto insurance is fiercely competitive, and margins are relatively low, and companies spend a lot of money on overhead and cost of customer acquisition, so AAA has a lot to lose by unilaterally raising rates.
- Spooky23 9y agoNot really, Tesla drivers will just flock to other insurers who don't rate their cars appropriately. Insurance is regulated, competitive and low margin.
- paulddraper 9y agoInsurers don't pay for maintenance. They pay for collision repair and medical. And data say those are more. No real surprise here. Expensive luxury/sports cars.
- dwtdfw 9y ago> Does AAA have something to gain by requiring anyone to pay more insurance? If their premiums are too low, they will lose money when insuring Tesla owners. According to AAA, their data shows that their premiums on Teslas were set too low, and need to be raised. If costs to insure Tesla are not, in fact, higher, then other insurers could keep their prices lower. It will be interesting to see if other insurers follow suit.