The cost of insurance premiums is prying open the mind of Scotty Kilmer. The YouTuber is on a war footing against the rise of the electric car. Kilmer points out that the cost of insuring a Tesla Model S is $4,500 in the USA. At $100K, the Tesla Model S is very expensive to buy new, and with that comes that sky-high insurance premium. But if the buyer, who is usually an entrepreneur, can afford the cost of buying a new Tesla then it is logical to assume they can afford the cost of insurance.
Kilmer points out that insurance premiums for electric cars are calculated on a number of factors. Cost to repair, cost to replace, etc. Most people do not consider such costs when being romanced by the seductive marketing literature and positive motoring reviews.
The truth is any car costing over $100K will have a high, eye-watering insurance premium be it an electric car or a conventional combustion-powered car. That is a fact. So Kilmer’s argument doesn’t entirely stack up.