Jan 26 (Reuters) - Tesla Inc's (TSLA.O) electric vehicles are expensive to repair - so much so that the automaker and insurers are addressing the

Tesla, insurers take different paths to deal with expensive repairs

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2023-01-27 07:00:05

Jan 26 (Reuters) - Tesla Inc's (TSLA.O) electric vehicles are expensive to repair - so much so that the automaker and insurers are addressing the issue in sharply different ways.

Chief Executive Elon Musk says Tesla is making design and software changes to its vehicles to lower repair costs and insurance premiums.

Insurance carriers, meanwhile, are writing off low-mileage Tesla Model Ys that have been in crashes, and sending them to salvage auctions after deeming many too expensive to repair.

During Tesla's fourth-quarter earnings call on Wednesday, Musk said premiums from third-party insurance companies "in some cases were unreasonably high" and that the EV maker's insurance arm was putting pressure on those carriers by offering lower rates to Tesla owners.

Musk also said "we want to minimize the cost of repairing a Tesla if it's in a collision," citing changes to vehicle design and software.

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