{"id":82640,"date":"2025-05-28T08:41:32","date_gmt":"2025-05-28T12:41:32","guid":{"rendered":"http:\/\/autosector.com\/?p=82640"},"modified":"2025-05-28T08:41:32","modified_gmt":"2025-05-28T12:41:32","slug":"tesla-is-losing-money-insuring-its-own-cars","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=82640","title":{"rendered":"Tesla is losing money insuring its own cars"},"content":{"rendered":"
\n\t\"\"<\/figure>\n

Tesla\u2019s insurance products are currently unsustainable, according to a new report that shows the company is losing money insuring its own cars.<\/p>\n

<\/p>\n

Tesla vehicles have long had a reputation for being expensive to insure.<\/p>\n

The automaker tried to address the situation on multiple fronts. It launched its own \u201ccollision centers\u201d to try to control repair costs, and it also introduced its own insurance products.<\/p>\n

Tesla claims that no other insurer knows more about its technology and its owners than Tesla does, so the automaker should be able to offer more precise products.<\/p>\n

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For the last few years, Tesla has been offering its own car insurance in some US states. The automaker utilizes its capacity to collect real-time driving data from its vehicles to create what it calls a \u201cSafety Score. \u201d This score is based on how and when drivers drive, and the company increases or decreases their monthly premium accordingly.<\/p>\n

The use of Tesla\u2019s ADAS systems, Autopilot and Supervised Full Self-Driving, can also affect premiums.<\/p>\n

Tesla owners have been reporting mixed results when trying to obtain lower quotes from Tesla compared to other insurers.<\/p>\n

Now, data from S&P Global points to Tesla Insurance having significant problems:<\/p>\n

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An insurance company\u2019s loss ratio is a key metric, as it represents the percentage of premiums paid out to customers. The higher it is, the more likely an insurer is likely to lose money.<\/p>\n

Based on S&P Global\u2019s latest data, Tesla\u2019s was at 92.5% in 2023. This means that Tesla Insurance paid out 92.5 cents in claims for every dollar it collected in premiums.\u00a0<\/p>\n

After accounting for overhead costs, it means that Tesla was likely losing money on its insurance products.<\/p>\n

In recent months, data suggests that insurance is becoming more expensive for Tesla vehicles<\/a> in 2025.<\/p>\n

Electrek\u2019s Take<\/h2>\n

This is quite interesting, as it directly contradicts Tesla\u2019s claim that its vehicles are involved in crashes at a significantly lower rate than other vehicles and are relatively inexpensive to repair.<\/p>\n

Neither of those claims can be true if insurance premiums are expensive.<\/p>\n

If it were the case, insurance costs on Tesla vehicles would be going down, and Tesla would be making money with its insurance products.<\/p>\n

Now, S&P claims that even the latter is not valid. <\/p>\n

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FTC: We use income earning auto affiliate links.<\/em> More.<\/a><\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

Tesla\u2019s insurance products are currently unsustainable, according to a new report that shows the company is losing money insuring its own cars. Tesla vehicles have long had a reputation for being expensive to insure. The automaker tried to address the situation on multiple fronts. It launched its own \u201ccollision centers\u201d to try to control repair […]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-82640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-cars"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/82640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=82640"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/82640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=82640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=82640"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=82640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}