Why Your Tesla Could Soon Be Uninsurable
Tesla owners may soon see their insurance premiums rise due to an unexpected factor: vandalism.
Insurance analysts warn that increasing incidents of Teslas being damaged—spray-painted, set on fire, or even shot—are putting pressure on insurers, potentially leading to higher comprehensive coverage costs.
Key Points
- Increasing vandalism against Tesla vehicles may lead to higher insurance premiums as insurers adjust rates due to growing claims
- Reports from the U.S., Germany, and the U.K. detail Tesla cars being set on fire, shot at, and spray-painted with anti-Musk messages, targeting the brand due to CEO Elon Musk’s political involvement
- Tesla's used car values and search interest are declining, with a 16% drop in searches for used Teslas and a 28% increase in demand for non-Tesla EVs. If vandalism issues persist, insurers may limit coverage or further raise premiums
Tesla CEO Elon Musk’s outspoken political stances appear to have made the brand a symbol in ongoing cultural and political debates, turning parked vehicles into collateral damage. It's gotten so bad that President Donald Trump has even labeled attacks on Tesla dealerships domestic terrorism.
Insurance experts note that while vandalism claims typically don’t impact rates as much as collision claims, a sustained increase in claims could lead to rate hikes across the board for Tesla owners.
Given that Teslas are already among the most expensive vehicles to insure—ranking just below brands like Rolls-Royce, Lamborghini, and Bentley—any increase in premiums could make ownership even less affordable.
According to Newsweek, the average annual cost for full-coverage insurance on a Tesla Model 3 rose by 30% in 2024 to $4,362, which is 25% higher than a comparable Mercedes-Benz A-Class. The Cybertruck isn't much better, with an estimated average annual insurance cost of $3,813. With rising vandalism claims and documented cases of the Cybertruck's abysmal build quality and willingness to just fall apart, those numbers are likely to climb even higher.
Beyond insurance concerns, Tesla is struggling with declining sales and plummeting used car values—making it even harder on beleaguered owners hoping to sell their Tesla. Data from Cars.com shows a 16% drop in searches for used Teslas, while demand for non-Tesla EVs has risen by 28% year-over-year.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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I am amazed that this journalist is able to increase insurance rates on his own! At least that appears to be the case based on the opinions of those who have already commented.
to each his own. I would rather have a Hummer EV. I remember when Mitsubishi went from making video game consols (crazy climber) to cars. it is hit or miss. Deloreans were about the same with poor build quality/ reliability.