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Because "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
by rory096 9y ago
Because "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.