Tesla files for 30% rate increase in Maryland
In late July, Tesla Insurance became available to residents of Maryland, with a program underwritten by the carmaker’s subsidiary insurance carrier.
According to a recent filing by Tesla Property & Casualty, the insurer is proposing a 30% rate increase due to “competitor rate activity and the inflationary environment that has continued to persist.”
Based on the filing, the Tesla insurance program has 1,508 policyholders in Maryland, with written premiums standing at ~$965k.
Bottom Line: Tesla will continue to maintain its competitiveness if the insurance premium is more affordable than that offered by rival insurers, notwithstanding the likelihood that it may annoy some consumers at renewal.