Tesla insurance has always been pricey. Will vandalism make it higher?

New York (CNN) — Incidents of vandalism against Teslas have risen along with anger against CEO Elon Musk, whose Department of Government Efficiency has led efforts to drastically slash the federal government’s workforce.

But experts say that while an extended run of vandalism could end up raising insurance premiums, it’s too early – and insurance is too complicated – to tell what will happen.

“It isn’t something drivers need to be worried about happening today,” Bankrate insurance expert Shannon Martin said. “But it is something they need to keep their eye on in the future, especially potential Tesla owners.”

Insurance for Teslas has always been pricier than similar classes of cars, either gasoline- or electric-powered. That’s because Teslas’ advanced technology and pricey batteries cost more to repair, according to Insurify, a company that compares American insurance rates for consumers. A damaged Tesla costs about $1,300 more to repair than a gasoline –powered car, according to Insurify – and those pricey repairs factor into how much insurers charge Tesla drivers for their premiums.

According to Bankrate data from this month, the average premium for full coverage of a Tesla Model 3 sedan is $3,495 per year, a premium for a Tesla Model Y SUV is $3,771, and the full-size Model X SUV is $5,459. The electric Ford F-150 Lighting pickup truck, in comparison, costs an average of $2,942 to similarly insure, which is slightly higher than the national average of $2,678 for all cars.

Out of the 50 most popular cars in the United States, the top four most expensive to insure are all Teslas, according to Insurify.

Premiums could go up if there are more claims filed for vandalism. However, it would take a lot more vandalism incidents to get to the point of higher insurance rates or even being denied coverage. Right now, the incidents are sporadic and anecdotal – with documented vandalism in the Pacific Northwest, the Northeast and around the country – but drivers who had their vehicles vandalized will be impacted first.

Car insurance is complicated

Many factors go into the price of a car insurance premium, from the make and model of the vehicle to whether it’s regularly parked outside. Vandalism does contribute to car insurance rates, but collisions and personal driving history usually matter more to insurance companies, Matt Brannon, data journalist at Insurify, told CNN.

Vandalism shouldn’t affect third-party coverage or collision coverage since it doesn’t involve another vehicle. If anything would go up, it would be the comprehensive coverage.

The first thing insurers could do if they could see sustained or increased rates of vandalism is to decline to offer new policies to Tesla drivers, especially in areas where vandalism happens frequently, said Brannon.

“They either resume writing those policies once vandalism has declined, or they can raise their rates to equate with the heightened risk that is being attributed to this vandalism,” Brannon said.

Mark Friedlander, media relations director at the Insurance Information Institute, an industry association, said he isn’t aware of any insurers that have so far stopped issuing policies to Teslas.

Tesla also offers its own insurance, but those rates aren’t made public, and it’s only available in 12 states. Most car insurance is renewed in six-month chunks, which is when an insurer could choose to renew the policy or change the premium.

Few precedents

The last time, and the only time in recent history, a similar situation arose was due to a social media trend. A TikTok challenge showed how to steal Hyundai and Kia cars; between early 2020 and the first half of 2023, thefts of Hyundai and Kia models rose more than 1,000%. Though the companies released anti-theft software updates, many insurers refused to cover the vehicles.

Bankrate’s Martin said that different insurers responded differently – while one would say it wouldn’t insure the affected cars, others said they just wouldn’t add comprehensive collision to a vehicle that didn’t already have it. The first step most insurers took, Brannon said, was to stop writing policies for the affected vehicles.

CNN has reached out to Tesla, Geico, Allstate and State Farm for comment on Tesla insurance rates.

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