Tesla Model S Has Higher Insurance Losses Than Other Large Luxury Cars

This article describes recent findings from the Highway Loss Data Institute (HLDI) that found higher claim frequencies and higher repair costs for the Tesla Model S luxury sedan, compared to gasoline-powered large luxury cars. The Tesla also accumulates more miles on average per day than other battery-powered vehicles. The HLDI study included nine vehicles: the Tesla Model S, the Nissan Leaf, and seven other electric vehicles (the BMW 1 Series ActiveE, Chevrolet Spark EV, Fiat 500 Electric, Ford Focus electric, Smart ForTwo Electric Drive two-door, Smart ForTwo Electric Drive convertible and Toyota RAV4 EV), focusing on collision and property damage claims. Collision coverage insures against physical damage to a vehicle in a crash if the driver is at fault. Property damage liability coverage insures against physical damage that at-fault drivers cause to other people's vehicles and property in crashes. Under collision and property damage liability coverages, the seven electric vehicles with exact conventional counterparts had lower claim frequencies and higher claim severities than their comparison vehicles. However, the Tesla Model S had higher claim frequencies, severities, and higher overall losses than other large luxury cars. Readers are referred to the full study, entitled “Insurance losses — Comparison of Electric Vehicles and Their Conventional Counterparts while Adjusting for Mileage” that appeared in the HLDI Bulletin.


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  • Accession Number: 01641336
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 19 2017 3:44PM