AAA raising insurance rates for Tesla owners

AAA argues Tesla cars crash more often than average, and are more expensive to repair.

AAA is making it more expensive to insure a Tesla Model S or a Model X.

After examining a report from the Highway Loss Data Institute (HLDI), AAA concluded Tesla cars crash more often than comparable models, and they're considerably more expensive to repair. The data covered cars from the 2014, 2015, and 2016 model years.

The report suggests the rear-wheel drive Model S is involved in 46 percent more accidents than average, while repair costs are over 50 percent higher than the industry average. Those percentages check in at 41 and 89, respectively, for the Model X. As a result, Tesla owners insured through AAA will soon see a 30-percent hike in insurance rates.

Unsurprisingly, Tesla doesn't agree with AAA's decision. Tesla re-iterated that the Model S is one of the safest cars on the market, and criticized how the insurance company analyzed HLDI's data.

"This analysis is severely flawed and is not reflective of reality. Among other things, it compares Model S and X to cars that are not remotely peers, including even a Volvo station wagon," said the company in a statement emailed to Automotive News.

The Tesla S is considered a large luxury vehicle, meaning it's lumped in the same category as the Mercedes-Benz E-Class, the BMW 5 Series, and the Volvo XC70, among other cars.

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