The Briefing Room
General Category => Economy/Business => Topic started by: Frank Cannon on June 05, 2017, 03:54:04 am
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http://www.zerohedge.com/news/2017-06-04/aaa-raises-premiums-teslas-saying-owners-file-claims-abnormally-high-rates
(http://insideevs.com/wp-content/uploads/2013/12/Side-View-550x412.jpg)
AAA is raising premiums on Tesla vehicles by 30% after data showed that owners of Model S and Model X cars filed claims at abnormally high rates, and that those claims cost more compared with other cars in the same class, Automotive News reported.
Tesla, of course, is disputing the insurer's analysis.
"This analysis is severely flawed and is not reflective of reality," the electric-vehicle maker said in a statement emailed to Automotive News. "Among other things, it compares Model S and X to cars that are not remotely peers, including even a Volvo station wagon."
AAA’ chief actuary said the insurer noticed the anomaly in its own data before confirming it with data provided by a second source, the Highway Loss Data Institute.
"Looking at a much broader set of countrywide data, we saw the same patterns observed in our own data, and that gave us the confidence to change rates," he said.
Other large insurance companies, including State Farm and Geico, said that claims data is a major factor in calculating premiums. But they would not disclose if their Tesla-owning customers would also see rates rise.
The Highway Loss Data Institute report covered the 2014-2016 model years. Vehicles are divided into classes based on size, weight and competing models. The frequency and severity of claims are compared with overall average claims. The report found that the frequency, and cost, of claims related to Tesla vehicles was much higher.
"Teslas get into a lot of crashes and are costly to repair afterward," said Russ Rader, spokesman for the Insurance Institute for Highway Safety, which is the Highway Loss Data Institute's parent organization. "Consumers will pay for that when they go to insure one."
Tesla said the Highway Loss Data Institute's system placed it with the wrong competitors. If it were compared with similar rivals, the company argued, its crash data would not stand out negatively.
Tesla said the high rate of acceleration in both the Model S and Model X make it "false and misleading" to compare against vehicles such as the XC70, adding that the Model S also holds the lowest likelihood of injury, according to an evaluation by the National Highway Traffic Safety Administration.
"We expect Model X to receive the best score for any SUV ever tested," a Tesla spokesperson said.
Collision damage claims for large luxury vehicles are reported 13 percent more frequently than average, and those claims cost about 50 percent higher than average, the Highway Loss Data Institute said. The rear-wheel-drive Tesla Model S is involved in 46 percent more claims than average, and those claims cost more than twice the average, it said.
In the large luxury SUV class, where collision coverage claim frequency is the same as the average for all vehicles and the cost of claims is 43 percent above average, the owners of the Model X file for claims 41 percent more often than average, and those claims cost 89 percent more than average, according to the institute.
New approaches to calculating premiums may eventually benefit Tesla owners, Automotive News reported. Root is an insurance startup that sets premiums based on individual driving behavior. Customers download the Root app and drive with their smartphone in the car for two weeks. Rates are determined from the habits observed over that period.
Semi-autonomous driving features help bring rates down, said Root CEO Alex Timm. The company gives a special discount for Tesla vehicles equipped with Autosteer — part of Tesla's suite of Autopilot semi-autonomous tech — which NHTSA found reduced crash rates by 40 percent.
"Insurance premiums should reflect risk," Timm said. "Autonomous vehicles are safer and will continue to get safer. It's proven in the data."
Tesla said that it is working with insurance companies to properly evaluate the benefits of Autopilot.
"As part of the Insure My Tesla program, Tesla is working with leading insurers resulting in lower prices for Tesla insurance, not higher," Tesla said in its statement. "These leading insurers also appreciate the added safety benefit of Autopilot."
The big question, of course, is that if Tesla owners have to pay considerably higher insurance premiums, what happens to the marginal new Tesla car sale?
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Looks like America's #1 Welfare Queen is going to have to go to the govt' and try to get taxpayer money to offset the higher premiums for people buying his worthless shitboxes.
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So now the car company that cannot exist without govt handouts also may not exist without insurance handouts.
Why is anyone other than the rich funding this playtoy for the rich, anyway?
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Those pesky underwriters at the insurance companies reviewing claims and loss data. Tisk tisk
LOL
Screw Saint Elon and the electric battery his tes(ticle)la road in on.
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Those pesky underwriters at the insurance companies reviewing claims and loss data. Tisk tisk
LOL
Screw Saint Elon and the electric battery his tes(ticle)la road in on.
LOL. Yeah. Elon the Sham is trying to convince insurers that his $90,000+ car is the same as a Prius and that they should just suck up the loses. Good luck with that.
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LOL. Yeah. Elon the Sham is trying to convince insurers that his $90,000+ car is the same as a Prius and that they should just suck up the loses. Good luck with that.
Just wait till customer reviews when Tesla owners find out what it costs to replace their battery.
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They are very fast, and very silent. My guess in part, they encourage fast driving, by low skilled folks.
Lack of noise gives no feedback of actual speed, and crash they go.
And they probably cost a fortune to repair.
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Just wait till customer reviews when Tesla owners find out what it costs to replace their battery.
Elon says it is $12K but if you go through the forums people with the cars are saying anywhere between $25K and $45K.
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Tesla - Proof that PT Barnum was right!
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Elon says it is $12K but if you go through the forums people with the cars are saying anywhere between $25K and $45K.
Dayum. This guy really is P. T. Barnum incarnate!
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Dayum. This guy really is P. T. Barnum incarnate!
No kidding! It would cost more than my car.
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No kidding! It would cost more than my car.
...and at the same time getting his gig subsidized by the US taxpayer.
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Dayum. This guy really is P. T. Barnum incarnate!
He may be better than P.T.
Did Barnum get government to help him pull a fast one on his customers?