Depends what the small letters say. Not all insurances are equal, unfortunately.

Very good point. But... I'm sure it's profitable for them no matter how expensive the car is to repair. I don't think that's a driver to make the car cheaper to repair. In fact, if they are harder to repair it's probably even better! The "write off" part of the typical insurance claim is different because they're paying themselves in that case.

The insurance coverage model provides extra cash now. The market value of a Tesla is different than the raw material value (batteries, raw materials, recycling) so I'm sure Tesla doesn't care about that because it's not generic insurance for any car, it's Tesla insurance for Teslas. They can charge less, get extra cash flow, and the raw material goes right back into the factory to make a brand new one.