Tesla Owners Face New Challenge Amid Tariffs, Vandalism: Insurance Costs Going Up Twice The National Rate

Tesla Inc TSLA owners have been subject to increased reports of vandalism and targeted attacks as the electric vehicle company faces declining brand value in the wake of CEO Elon Musk's continued political push.Those same owners could be in for another challenge in 2025: increased insurance payments.What Happened: Increased vandalism on Tesla vehicles and lower used car values are among the negatives facing Tesla owners in 2025 after Musk's push in politics has angered many and hurt the brand value of the EV giant.A new report from Insurify, shared by Electrek, shows that higher insurance premiums could be another negative for Tesla owners in 2025 and things could get worse.Overall automotive insurance premiums have risen due to a fear that tariffs that could make 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, the report found.Among the vehicles with the largest increase are several Tesla models. Here's a look at the top 10 vehicles seeing the largest increase in premiums from 2024 to 2025 in the U.S.:Tesla Model Y: +29%, $3,996 average annual costTesla Model 3: +24%, $4,364 average annual costTesla Model X: +22%, $4,046 average annual costBMW 5 Series: +19%, $3,229 average annual costToyota Prius: +18%, $2,151 average annual costHyundai Santa Fe: +15%, $2,241 average annual costHonda Accord: +14%, $2,623 average annual costHyundai Elantra: +14%, $2,851 average annual costHonda Civic: +13%, $2,600 average annual costHyundai Sonata: +12%, $2,735 average annual costTesla has the top three brands that have seen the largest year-over-year increase from 2024 to 2025 in the United States according to the report.Read Also: EXCLUSIVE: Tesla Protest Organizer Says ‘Elon Musk Seems To Have Purchased The American Government’Why It's Important: The survey was done between February 2024 and February 2025, which means that insurance rates could actually be even higher with vandalism on Tesla vehicles high in recent months.Tesla parts have been known to be expensive to repair, often leading to large premiums from insurance companies to offset the potential cost.Tesla has its own insurance segment, but it is not available in all states.The higher insurance costs and worries about tariffs could scare consumers away from electric vehicles in 2025, especially Tesla vehicles. While consumers can save money at the pump with an EV, owners are now faced with the decisions of lower resale value than past years and higher insurance rates for Tesla vehicles.TSLA Price Action: Tesla stock was up 0.7% to $254.11 on Tuesday versus a 52-week trading range of $138.80 to $488.54. Tesla stock is down 33% year-to-date in 2025.Read Next: Tesla Loses Steam In Q1 While US EV Sales Climb: The Winners And LosersPhoto: Shutterstock