Teslas is the hottest new target for vehicle vandalism. However, when smoke is settled from dealer lots, many Tesla owners are predicting financial aftershocks. Could the recent rash of Tesla vandalism potentially raise already high premiums?
A simple answer: Probably, but that’s not clear. Insurance premiums address a wide range of risk factors. While every car requires insurance, not all cars will make a profit for the insurer. If a particular manufacturer or model is at an unusually high risk, the insurance company’s exposure will begin to outweigh the potential value the vehicle exhibits. Owners of these vehicles may pay a higher fee, or you may notice that some insurance companies simply don’t cover the vehicle.
Cars that are difficult to guarantee are generally high value, high power, have electric motors or are hot targets for crime. As of 2025, the Teslas may be a rare car that fits all of these categories.
Tesla critics aren’t new, but the threat looks different in 2025
Bankrate Washington Director Mark Hamrick, a longtime Tesla owner, says hostility towards the cars he drives isn’t a recent issue.
“I’ve always noticed,” says Hamrick. From the humble Prius hybrid to sophisticated EVs like Tesla’s popular Model Y, green cars have long sparked anger from some, ranging from concerns about the future of the American automotive industry to complaints about the EV tax credits.
But now the threat looks different. The actions and political affiliation of the company’s CEO Elon Musk have stripped Tesla’s reputation from the rest of the EV pack. Tesla’s new enemies include some of those devastating Tesla vehicles — more and more come from people opposed to drastic funding cuts on masks as special government officials of the Department of Government Efficiency (DOGE).
“You’re kind of at risk throughout the equation,” says Hamrick. “I don’t know what someone is doing troublesome things, but I can come up with a variety of scenarios.”
Hamrick and his fellow Tesla owners are not the only ones paying attention to new threats to Tesla vehicles. As of April 2025, all Tesla vehicles on the road are on the New York Department of Financial Services (DFS) list for “Difficulty for Insurance Vehicle Waiver.” If multiple insurers indicate they do not insured those models, or if they only do so “under certain strict conditions or for certain types of operators,” the vehicle will be added to the “hard insurance” list. In other words, some New York insurers have already said they are very selective about which Teslas (if any) guarantees.
“Kia Challenge”: How social trends affect insurance
A specific situation at Tesla may be unique. However, it is not the first time that social behavior has created a new category of insurance risk.
Since 2021, Hyundai and KIA owners have been fighting for sudden insurance renewals and even denial of coverage. Starting in Tiktok in early 2021, “Kia Challenge” showed social media users how to steal certain Hyundai and KIA vehicles using simple USB chargers.
“This was one of the first issues I’ve seen literally go viral,” says Matt Moore, Chief Insurance Operations Officer at the Highway Ross Data Institute (HLDI). Moore points out that most vehicle theft trends are “very localized,” but the situation at Modern/Kia was different. It began in Milwaukee, but then spread rapidly throughout the country.
Insurance costs for these vehicles were shot as theft and vandalism surged across the country in Hyundai and Kia vehicles. In a December 2023 research report, HLDI estimated that the frequency of theft claims for affected Hyundai and KIA vehicles increased by 43% between January and June 2023, with overall losses exceeding the average, a staggering 478%. Some insurers have passed the costs of these losses to their customers in the form of premium increases. Others simply chose to suspend warranty on certain Hyundai and Kia vehicles. Several Reddit users reported that it was difficult to find coverage for Hyundai and KIA vehicles.
“It is a common practice for insurers to refuse coverage for vehicles other than risk tolerance because of their high performance or high performance,” says Bankrate Insurance expert Shannon Martin. “However, the rise of Kias and Hyundais’ theft and vandalism claims has been such a costly for carriers that they have begun to limit and reject standard coverage of basic cars.
Hyundai and Kia fixed the theft issue. Can Tesla resolve vandalism?
The latest data from HLDI suggests that the trend of theft between Hyundai and KIA may ultimately be whimsical. The organization’s latest data update on subjects, published in December 2024, shows that theft claims for Hyundai and Kia vehicles fell by 40% in the first half of 2024 compared to the second half of 2023.
There is a clear reason for theft to decline, and it’s not just a social media trend, it’s not a loss of steam. In February 2023, Hyundai and KIA upgraded theft prevention software available to vehicle owners. By modifying the technological vulnerabilities that have caused the trend in the first place, automakers have reduced the chance of attacking vehicles.
As of April 2025, the average cost of Hyundai Sonata’s Full Coverage Auto Insurance is $2,854 per year. It’s only 6% more than the Toyota Camry’s compensation cost.
Theft and vandalism billing rates remain high for Hyundai and KIA vehicles, particularly models from Model 2015 to 2019, but the report states that “upgrades to theft anti-theft software appears to be related to reducing theft claim frequency.”
The Hyundai and Kia issues were mechanical. Tesla’s issues are political. And solving that may not be as easy as a software upgrade. However, if vandalism rates drop, Tesla will follow in the footsteps of Hyundai and Kia, with little impact on long-term insurance. Insurance premiums reflect risk. If the risk of the vehicle is temporary, the impact on the fare is likely.
Will Tesla vandalism spikes lead to higher costs for Tesla owners?
Tesla insurance costs could increase next year as carriers assess the costs of vandalism claims and assess the rise in issuance rates when policies are updated. However, we cannot know for certain what these rate increases will look like, or whether they will occur. A higher rate could be most affected by comprehensive coverage covering vandalism and other non-collision damage. As of April 2025, the Tesla Model Y’s full coverage insurance averages $3,789 per year, 3% more than the $3,679 before the bandarism in January.
Earlier this month, a user from the Tesla Motors Club Online forum asked: Of the nine users who responded, four reported a massive premium increase, partly due to the addition of new cars and drivers to the policy.
“My update will take place in a few days,” one user shared. “It doesn’t increase at all. It’s after an accident with my car and an accident with my wife’s car within the last six months and a windshield replacement request.” Another complaint was, “I’ve increased by $2,400 a year….buuuut added a 16-year-old driver and a Model 3 performance at the same time.” Other users reported a small amount of “typical” increase – $6 a month, $85 in the six-month policy – even said they received a low fee on the renewal.
As for Hamrick, the rising premium threat will not push him from the Tesla train to disembark. His family has insured vehicles, including Tesla Model Y and Model 3, with State Farm for years, and has had positive experiences at both State Farm and Tesla. “I have negative feelings about the way this presented itself,” he says. “It was extremely painful to see the experience of Brand being politicized by Musks’ actions.”
However, he sees the pros and cons of trading at Teslas as he considers the advantages and disadvantages for a less risky ride, but Hamrick says he is happy to stay here for now. “We’ve always had good experiences on state farms,” he says, and there was no notable increase in his Teslas premium, he has not seen any economic benefits in switching cars or careers.
In the meantime, he wants to see Elon Musk leave the political realm and cover the flames driving the Tesla bandarism epidemic. “The more he stops it, the better it’s for Tesla and Tesla owners.”
