Insurance Companies Have Decided to Write Off Tesla EVs

People have always had the right to get their self-owned vehicles repaired, under the Right to Repair law. Although the law states that no insurance company can deny their services to a vehicle owner, are people really willing to spend a load of money on getting a fault fixed? Well, other people might but for Tesla owners, things might not be the same anymore. With the rise in the repair cost of Tesla electric vehicles, the repair charges have hit the roof, which is why people have started claiming heavy insurance covers too. But are insurance companies ready to pay all that money? Well, let’s find out.

The Repair Costs

According to a news report from Reuters, the cost of fixing the majority of 120 Model Y vehicles is almost the same as buying a new one. In the report, they explained the situation with an instance that might blow your mind. The repair charges of a Model Y Long Range EV, when faced with a front collision, were more than $50,000. Wondering how much a new one costs? $61,000! That’s right. This is why insurance companies have decided to write off such electric vehicles.

What Are Insurance Companies Offering?

In order to make sure that the companies fix the problem for the owner, Tesla’s insurance side business is working together with the automaker so that they can reduce repair costs in the future. In fact, during an earnings call, Elon Musk, the CEO of Tesla, told Reuters that before now, they were not really aware of the situation as most of the costs were covered by other insurance companies. However, when brought to notice, they were as shocked as the EV owner himself after looking at the figures. Now, the company is working with its team to change its vehicle designs and even offer spare parts in order to make the repair costs a little less.