#InsuranceRates

Drivers of certain cars are prone to drive badly in foul weather. Over four million applicants for insurance are a pretty good indicator. Is it the type of car, or a more aggressive driver? You be the judge.

The Model 3 was intended to be Tesla’s affordable alternative for the mass market and, for the most part, that’s what it has been. Granted, the automaker did opt to prioritize the production of higher trim levels as a way to maximize profitability. But, given its financial situation, it was an understandable strategy. The Model 3 is still the cheapest way to get into a Tesla. However, it’s not the cheapest vehicle to own — especially when it comes to insurance rates.

Last year, AAA said premiums on Tesla vehicles would likely go up 30 percent after reviewing data from the Highway Loss Data Institute. At the time, Tesla said the analysis was “severely flawed and is not reflective of reality.” But the auto club stated the HLDI’s findings matched its own research, as well as numerous other sources.

“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,” said Anthony Ptasznik, chief actuary of AAA.

Insurance may be one of the greatest scams ever pulled on the general public, but it’s a very necessary evil. Right around the time the automobile became popular, people starting crashing them into things. By the 1920s, individual states began requiring drivers to purchase insurance — creating a pooled solution that covered at-fault drivers for damages they might be unable to pay otherwise.

However, not all drivers crash and not all vehicles incur the same costs when they take or deliver a beating. Collision losses might be astronomical for high-end sports cars but comparably moderate for midsize pickup trucks. The Insurance Institute for Highway Safety and Highway Loss Data Institute recently compiled the loss averages for hundreds of models, grouping them by segments, to establish how lightly-used autos stack up against each other.

The American Automobile Association thinks Tesla cars should cost more to insure due to abnormally high claim frequencies and expenditures compared to similar vehicles. The group said premiums for Tesla’s Model X and Model S could increase by up to 30 percent, based primarily on data from 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,” said Anthony Ptasznik, chief actuary of AAA.

Obviously, Tesla Motors isn’t pleased and is offering a rebuttal before other insurers follow in AAA’s footsteps.

Michigan is the state with the most expensive insurance in the United States. However, a potential overhaul could bring down those costs.