A recent study reveals that Tesla (TSLA, Financial) models top the list for the fastest rise in car insurance costs in the United States. Over the past year, insurance fees for Tesla Model Y owners have surged by 29%. Data scientists analyzed a proprietary database of over 97 million quotes to determine which vehicle models will experience the most significant full insurance cost increases from February 2024 to February 2025.
The study highlights that the complexity of new car features is a primary factor driving up repair costs for minor accidents. Expensive sensors such as blind spot monitors and automatic emergency braking systems, which are typically mounted outside vehicles, are more susceptible to damage during accidents. Moreover, the top 10 vehicles with the fastest insurance cost increases are all electric or hybrid cars. This trend is attributed to the generally lower repair costs of gas-powered vehicles, resulting in reduced underwriting expenses for insurance companies.
