21:47:10 EDT Tue 21 May 2024
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Globe says Teslas rapidly becoming uninsurable

2023-11-10 07:29 ET - In the News

The Globe and Mail reports in its Friday edition that when electric vehicles are damaged, they can be enormously expensive to repair or replace, and that could lead to higher insurance premiums for EV owners. In a Globe special, Kunal D'Souza writes that an abnormally high number of low-mileage Teslas are being written off by insurance carriers in the United States, the majority with fewer than 16,000 kilometres. Tesla chief executive officer Elon Musk has said that insurance rates for Teslas can be "unreasonably high," and that the company is working to minimize the cost of repairing their cars. In the United Kingdom, where BEVs (battery-electric vehicles) accounted for 16.6-per-cent market share in 2022, nearly double that of Canada, things are more troubling. Some insurance carriers there are refusing to insure electric cars, citing high repair costs. Many other drivers in Britain are facing skyrocketing premiums. Data from the Insurance Bureau of Canada show that Teslas have some of the highest claim costs in Canada. Where a rating of 100 is the average, and a lower score is better, the IBC index shows Teslas rate from 168 to 414 on collision claims, and 237 to 644 for direct compensation property damage.

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