It’s easy to see how Tesla came up with this opaque and unaccountable plan. First they tell people Tesla insurance will be more efficient and less expensive. Second they create a complicated mess and charge people far more.

A potential class-action lawsuit filed in California claims that Tesla Insurance overcharged customers by incorporating erroneous forward-collision warning data, which allegedly triggered automatic safety score downgrades and led to higher premium costs.

The potential lawsuit, regarding claims of fake data used to scam customers, already has made a difference according to insurance industry news.

Tesla Insurance Services Inc. has eliminated forward-collision warnings as a metric in its Safety Score Beta program, which evaluates driver behavior to determine collision risk and influences insurance premiums. The update, reflected in the transition from version 2.1 to 2.2 of the Safety Score Beta, no longer includes these warnings in the calculation of a driver’s risk profile.

Think about the “safety” logic of a “collision warning”. It basically could have been programmed so Tesla would print money, raising rates on basis of a opaque “warning” without any burden of proof.