Tesla Inc’s (NASDAQ:TSLA) Model 3 electric sedan has earned the top safety rating from the Insurance Institute of Highway Safety (IIHS), becoming the first electric car to garner that distinction.
The IIHS has given the Model 3 its highest rating, know as the "top safety pick+." The institute said the Model 3 earned good ratings across the board for crashworthiness. The car’s structure held up well in the driver-side small overlap front test, IIHS said.
Last month, Tesla said it was launching an insurance service designed to give drivers in California, its biggest market, lower rates because of safety features on its electric vehicles.
Tesla Chief Executive Officer Elon Musk has been one of the strongest proponents of the idea that car insurance rates should plummet as driver-assist and self-driving technology become standard in vehicles.
The company’s cars generally rank among the most expensive vehicles to insure due to their high repair costs for components and sensor equipment, according to safety researchers and insurance providers. Tesla has made lowering insurance rates a key goal of the company moving forward.
