Insurance companies write off almost new Teslas as total losses after accidents - is that justified?

Insurance companies write off almost new Teslas as total losses after accidents - is that justified?

According to a report from amp.focus.de, insurance companies write off almost brand-new Teslas as total losses after accidents. This happens even though many vehicles only have low mileage and could theoretically still be repaired. The reason for this decision is probably due, among other things, to the high replacement price of the battery, which has an increased risk of fire in damaged electric cars. In addition, expensive sensors and electronics for modern assistance systems also play a role, which further increases repair costs.

According to Reuters' own research, insurance companies such as State Farm, Geico and Progressive quickly write off Teslas as total losses despite minor body damage and high new prices. This happens often, even though a repair would theoretically still be worthwhile. However, according to the report, repair costs of up to $50,000 are calculated, which means that insurers prefer to label the electric cars as a total loss.

The costs for replacing the battery amount to high five-figure sums for various manufacturers. For example, Mercedes-Benz and Smart charge high prices for replacing damaged batteries. The large number of sensors and electronics for modern assistance systems in vehicles also increase repair costs, regardless of the car's drive type. This also affects the insurance classification of the vehicles.

However, Tesla is already planning changes to the vehicle design and software to reduce the high repair costs and thus the premiums charged by insurance companies. Nevertheless, it remains to be noted that dealing with damaged batteries and modern electronics represents a challenge for car repair shops and insurance companies and also has an impact on consumers.