Tesla Insurance Faces Class Action Lawsuit Over Increasing Premiums After Fake Crash Warnings

Tesla is about to face a class action after a judge refused to dismiss a lawsuit alleging that the automaker overcharged people using its insurance with “real-time data” after increasing their premiums over “fake crash warnings.”

When launching its own car insurance product, Tesla utilized its capacity to collect real-time driving data from its vehicles to create what it calls a “Safety Score,” which gives drivers a score based on how and when they drive, increasing or decreasing their monthly premium accordingly.

The move was to counter the fact that many third-party insurers were charging very expensive premiums on Tesla vehicles.

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