Tesla owners have been having a rough go of it in recent weeks. Cars across the U.S. and internationally have been spray painted, had their windshields smashed, been set on fire, and even shot; there are reports of protestors vandalizing showrooms and current owners begging for help.
And though the ire is meant to be directed at CEO Elon Musk, whose foray into national politics has enraged Americans across the country, it is Tesla owners who could pay the price. They could see their premiums soar as auto insurers move to price in the new risks, experts say.
“If the frequency and severity patterns of vandalism claims increases, it would put upward pressure on rates for comprehensive coverage,” says Stephen Crewdson, senior director in the global insurance intelligence group at J.D. Power.
Exactly how much more Tesla owners could pay depends on how much their claims increase and how each insurer decides to handle the increased costs, Crewdson says. But it seems likely that, if the attacks continue, prices will jump.
“It would be no different than any other situation driving up claims costs, like if a driver is reckless or part of a car damaged in an accident has expensive parts,” he says. “In this case, damaging vehicles on lots would mean an insurance company pays off the cost of the car to Tesla. It’s like how a ship full Hondas being brought to this country would be paid off if the ship sinks.”
Tesla’s owners troubles stem from protests targeting Musk, who is a senior unofficial advisor to President Donald Trump and who has led the charge to slash federal spending, including firing tens of thousands of government workers, but has seemingly little, if any, congressional oversight.
Trump has warned that his administration will treat any attacks on Tesla as an act of domestic terrorism against the United States, and Attorney General Pam Bondi has said her office will “continue investigations that impose severe consequences on those involved in these attacks.” No serious injuries have been reported related to the vandalism.
Pricing car insurance
It isn’t unusual for certain car models to cost more to insure, and Teslas are already on the higher end of the insurance premium spectrum, because they are expensive to repair after collisions. A luxury and electric vehicle is a double whammy in the insurance space, and the national average cost to insure a 2024 Tesla model is 33% higher than the national average cost for full-coverage insurance, according to MarketWatch.
Aside from the price of your vehicle—the more expensive the car, the more expensive the insurance—risk is also an important part of the assessment. When pricing your policy, an insurer will evaluate how risky you are to insure, looking at your age, credit score, driving record, gender, and location, among other factors.
Electric vehicles in general cost more to insure than gas vehicles, but they are not the only ones that some owners might have difficulty insuring. For example, in recent years, there was a surge in thefts of Hyundai and Kia vehicles. It turned out a collective of teenagers calling themselves the Kia Boys figured out how to steal the cars due to a crucial design flaw, and posted videos of their exploits online. The debacle led to many of the cars being largely uninsurable and the car companies eventually agreeing to a $200 million settlement.
