Tesla costs too much to repair, insurance companies scrap them

Tesla costs too much to repair, insurance companies scrap them

Tesla costs too much to repair



The vehicles produced by Tesla have very high repair costs, so high as to force the insurance companies to take drastic measures when dealing with crashed Teslas: often these cars are scrapped despite the low mileage, since are considered too expensive to repair .

For its part, Tesla is working to make its cars easier to repair, so as to also reduce the insurance premiums that Elon Musk's customers find themselves having to pay on their own car; developing from scratch platforms that are useful for the purpose, efficient and even simple to repair is not at all simple and today Tesla is faced with the harsh reality, which will force it in the coming years to review its production methods to minimize repair costs after an accident.



Interviewed on the matter, Elon Musk said:

“It's amazing how small changes to the design of the bumpers, plus a quick supply of spare parts, can have a huge effect on repair costs. Most road accidents are minor, a dented fender or a scratch on the side.”

This design problem means that in the parking lots of American auction houses there are many examples of Teslas, in particular the Model Y, to be sold "piece by piece" despite the instrumentation having less than 20,000 km travelled. Despite a list price that can range from $60,000 to $80,000, these cars are often declared unfit for repair and then purchased by insurers who then reimburse the owner for the car's value.

Among the most striking examples we find a Model Y Long-Range produced in August 2022 at the Fremont factory, California: purchased for $61,388, the cost of the repair following a front-end collision was estimated at $50,388 and for this reason the insurance company decided to scrap the car.

To meet its customers also from from an insurance point of view, since 2019 Tesla has begun to offer internal insurance that promised premiums 30% lower than the competition, and during one of the last meetings dedicated to financial results, CFO Zachary Kirkhorn stated that Tesla Insurance is growing by sight eye, faster than the car business.