Tesla owners are experiencing increased reports of vandalism and targeted attacks, which may lead to higher insurance payments in 2025. The electric vehicle company is facing declining brand value due to CEO Elon Musk’s continued political push.
Challenges Facing Tesla Owners
The combination of increased vandalism on Tesla vehicles and lower used car values may negatively impact Tesla owners in 2025. A new report highlights that higher insurance premiums could be another challenge for Tesla owners, with things potentially getting worse.
Rising Insurance Premiums
Overall automotive insurance premiums have risen due to fears of tariffs making auto repair costs and replacement costs more expensive. The average cost of full coverage on a vehicle is up 10% year-over-year to $2,302.
Top 10 Vehicles with Largest Increase in Premiums
The following vehicles have seen the largest increase in premiums from 2024 to 2025 in the U.S.:
- Tesla Model Y: +29%, $3,996 average annual cost
- Tesla Model 3: +24%, $4,364 average annual cost
- Tesla Model X: +22%, $4,046 average annual cost
- BMW 5 Series: +19%, $3,229 average annual cost
- Toyota Prius: +18%, $2,151 average annual cost
- Hyundai Santa Fe: +15%, $2,241 average annual cost
- Honda Accord: +14%, $2,623 average annual cost
- Hyundai Elantra: +14%, $2,851 average annual cost
- Honda Civic: +13%, $2,600 average annual cost
- Hyundai Sonata: +12%, $2,735 average annual cost
Tesla has the top three brands that have seen the largest year-over-year increase from 2024 to 2025 in the United States.
Importance of the Survey
The survey was conducted between February 2024 and February 2025, which means insurance rates could be even higher due to the recent rise in vandalism on Tesla vehicles. Tesla parts are known to be expensive to repair, often leading to large premiums from insurance companies.
Impact on Consumers
The higher insurance costs and worries about tariffs could deter consumers from purchasing electric vehicles, especially Tesla vehicles, in 2025. While consumers can save money on fuel with an EV, they now face decisions about lower resale value and higher insurance rates for Tesla vehicles.
Stock Performance
Tesla stock was up 0.7% to $254.11, with a 52-week trading range of $138.80 to $488.54. Tesla stock is down 33% year-to-date in 2025.