National insurer AAA is raising its rates on Tesla (NASDAQ:TSLA) vehicles by ~30% based on data showing that the Model S and Model X had, “abnormally high claim frequencies and high costs of insurance claims compared with other cars in the same classes”.
Tesla disputes the analysis: "This analysis is severely flawed and is not reflective of reality," it says. "Among other things, it compares Model S and X to cars that are not remotely peers, including even a Volvo station wagon."
Anthony Ptasznik, chief actuary of AAA, said the group noticed the anomaly in company data and then investigated other data sources, primarily relying on the Highway Loss Data Institute because of its scope, to confirm its analysis. "Looking at a much broader set of countrywide data, we saw the same patterns observed in our own data, and that gave us the confidence to change rates," he said.
This is quite interesting, and brings up the relevant point of comparable analysis. How close should the cars really be to be considered in the same class as Tesla, and are there really any comparables for Tesla’s luxury electrics?
