Even Tesla's Insurance Arm Is Getting Wrecked

Driver Risk & Crash Rates

• Several commenters argue Tesla drivers, especially in popular low-cost configurations (e.g., when white was the “free” Model 3 color), are overrepresented in reckless driving, correlating with high crash rates cited in external data.
• Others note regional changes: in some areas, social pressure and protests allegedly reduced Tesla ownership and aggressive driving.
• There is disagreement over whether “most Tesla owners” also own a gas car; some say that’s plausible in the US but clearly false in places like Norway.

Insurance Losses vs. Clickbait Narrative

• Multiple commenters point out the article’s headline overstates the problem: Tesla’s loss ratio is still bad but has improved steadily over three years, which they see as normal for a young insurance operation.
• Others stress that when you specialize in a single risky marque, you can’t just “grow out” of underwriting losses; customer loyalty is low and regulators won’t accept persistent negative margins.
• Some speculate Tesla insurance may function as a loss leader to support car sales and ensure insurability of its vehicles.

Repair Costs, Design, and Public Policy

• Broad agreement that repair costs for Teslas (and many modern cars) are very high, driven by:
  • Crumple-zone-heavy designs and large integrated panels.
  • Limited “approved” body shops inclined to replace rather than repair parts.
  • Expensive EV-specific components, especially batteries that may be preemptively replaced after impacts.
• One side argues this is an unavoidable tradeoff for crash safety and efficiency; others counter that you can design both safe and more repairable vehicles.
• There are calls for policy changes: liability caps tied to vehicle repairability, and concern that ordinary drivers shouldn’t bear extreme costs when hitting “glass cars.”
• Discussion of US liability minimums (e.g., $25k property damage) highlights how underinsurance shifts risk to luxury/EV owners themselves.

Market Context for Insurance & Premiums

• Swedish data cited: Tesla premiums reportedly nearly doubled while other EVs stayed flat or declined; suggested reasons include few insurers willing to cover Teslas, uncertain residual values, and long, expensive repairs.
• Vandalism and anti-Tesla actions are considered economically negligible for insurers.

Safety vs. Cost

• An anecdote of a severe Tesla crash with minimal injury is used to argue high repair bills “buy” exceptional occupant safety.
• Others note very heavy vehicles can improve safety for occupants while making the road less safe for others.

Tesla’s Vertical Integration in Finance & Insurance

• Commenters observe that automakers commonly have finance arms; direct policy underwriting is seen as rarer in the US but consistent with Tesla’s broader vertical-integration strategy.
• Some note that when Tesla Insurance pays for Tesla parts and service, part of the “loss” is recaptured elsewhere inside the company, though it’s unclear how internal transfer pricing is accounted for.