Teslas are already expensive to insure. A wave of vandalism could make things a lot worse.
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- Tesla vehicles are being hit by a wave of vandalism as the backlash against Elon Musk and DOGE grows.
- If the vandalism persists, Tesla owners could see insurance costs spike as providers hike rates.
- Teslas are already a lot more expensive to insure than other cars, per Bankrate data.
It's not easy being a Tesla owner right now — and it could be about to get worse thanks to rising insurance premiums.
The public backlash against Elon Musk and DOGE has turned Tesla into a target, with the company's vehicles, showrooms, and chargers hit by vandalism, gunfire, and suspected arson in recent weeks.
Some drivers have seen their cars graffitied and egged, and two Cybertruck owners previously told Business Insider they faced thousands of dollars in damages after objects were hurled at their vehicles during a Mardi Gra parade in New Orleans.
Fears that their vehicles might be targeted have already pushed some Tesla owners to sell up, and those that remain could face rising insurance costs as providers hike rates in response to the vandalism spree.
Average insurance premiums for Teslas are already higher than those for competing vehicles and have been steadily climbing in recent months.
The average premium for full coverage car insurance on a Model 3 hit $3,495 in March, according to data from Bankrate, up $101 from January, compared to the national average of $2,678.
The cost of insuring a Model Y, Tesla's best-selling vehicle, hit $3,771 in March, while average premiums on the Model X have risen more than $300 in three months to $5,459.
Tesla insurance premiums are now significantly higher than other EVs and hybrids including the Chevy Bolt, Toyota Highlander hybrid, and Ford F150 Lightning, per Bankrate's data.
Premiums for Model Y and 3 vehicles have risen 29% and 24% over the past year, compared to 10% for the average US vehicle, separate data from Insurify showed.
Shannon Martin, an insurance analyst for Bankrate, told Business Insider the rise in insurance rates reflected losses from 2024 rather than any recent uptick in vandalism — but added that insurance buyers should expect rates to rise in the next year if the problem persists.
"I would expect if this keeps happening at this rate, definitely by 2026 renewals, people will start seeing a change, maybe as soon as toward the last quarter of 2025," Martin said.
Martin compared the situation to the 2023 "Kia Boys" saga, which saw insurance providers hike premiums or refuse to insure Hyundai and Kia vehicles after a wave of TikTok-inspired thefts.
High insurance costs have long been a problem for Tesla owners, spurring the company to launch its own insurance provider in 2019.
Martin said the average insurance premiums on a Model 3, Tesla's cheapest model, were closer to luxury vehicles like BMWs.
The company's most high-profile new customer, President Donald Trump, summed up the reason insuring a Tesla is so pricey — "everything's computer."
"Tesla has a lot more cameras, a lot more computer chips than most other electric vehicles on the market," said Martin.
"They have cameras not just on the inside of the vehicle but also on the outside of the vehicle. So even a small fender bender would create very expensive repairs for the Tesla owner and the insurance company," she added.
Tesla did not respond to a request for comment, sent outside normal working hours.