The AAA insurance company is raising its rates on the Tesla Model S and Model X due to “abnormally high claim frequencies and high costs of insurance claims”.
Automotive News reported that claims on the Tesla Model S and Model X vehicles are much higher than other brands.
“AAA said premiums for Tesla vehicles could go up 30% based on data from the Highway Loss Data Institute and other sources,” said Automotive News.
Tesla disputed the claims, saying the analysis from AAA insurance “is severely flawed and is not reflective of reality”.
“Among other things, it compares Model S and X to cars that are not remotely peers, including even a Volvo station wagon,” said Tesla.