USAA, Auto-Owners, Travelers, National General and Nationwide offer the cheapest Tesla Model 3 insurance among national providers, per our analysis of Tesla rates across all 50 states. USAA ranks first with an average full coverage premium of $1,576 per year, which is 47% below the blended Model 3 full coverage average of $2,952 across 2017 and 2024 model years. Auto-Owners follows at $2,243, with Travelers not far behind at $2,313.
Cheapest Tesla Model 3 Insurance (2026)
Updated: August 1, 2026
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Key Takeaways
USAA offers the cheapest Tesla Model 3 rates at $451 a year for minimum coverage and $1,576 for full coverage, though coverage is limited to military members and their families. Auto-Owners is the most affordable non-military option for full coverage at $2,243 a year.
A 2024 Model 3 averages $3,317 a year for full coverage compared to $2,586 for a 2017 model. The newer vehicle's higher replacement cost drives the difference.
Cheapest Tesla Model 3 Insurance Companies
Top 5 Cheapest Tesla Model 3 Insurance Companies
Full coverage rates for the five cheapest Tesla Model 3 insurers span $1,576 to $2,405 a year, with USAA's lowest rate limited to military members, veterans and their families.
Rank | Provider | Min Coverage Average Annual Premium | Full Coverage Average Annual Premium |
|---|---|---|---|
1 | USAA | $451 | $1,576 |
2 | Auto-Owners | $655 | $2,243 |
3 | Travelers | $768 | $2,313 |
4 | National General | $633 | $2,324 |
5 | Nationwide | $923 | $2,405 |
*This ranking is based on rates for the Tesla Model 3 Long Range across 2017 and 2024 model years, for a 40-year-old driver with a clean record.
Top Tesla Model 3 Insurance Company Highlights
USAA has the lowest average premium among the top five, at $1,576 a year for full coverage, but only military members, veterans and their families qualify. Auto-Owners and Travelers offer the next-lowest rates with broader eligibility, at $2,243 and $2,313 a year. National General and Nationwide charge more on average, at $2,324 and $2,405, though both can beat competitors in specific states.
USAA
Cheapest Overall
USAA offers the cheapest Tesla Model 3 insurance at $451 a year for minimum coverage and $1,576 for full coverage. That full coverage rate is $667 below the next-cheapest provider, Auto-Owners. It's also 47% below the blended Model 3 full coverage average of $2,952 across 2017 and 2024 model years. USAA insures Tesla vehicles through standard auto insurance policies, not a Tesla-specific program. Eligibility is limited to current and former military service members, their spouses and their children. Non-military drivers can't get a USAA quote. Among drivers who qualify, USAA offers the largest premium savings of the top five insurers.
Auto-Owners
Cheapest for Most Tesla Model 3 Owners
Auto-Owners ranks as the cheapest widely available insurer for the Tesla Model 3, at $655 a year for minimum coverage and $2,243 for full coverage. Auto-Owners operates through independent agents in 26 states, so Model 3 owners in its service area can compare local quotes without a direct-to-consumer platform. The insurer doesn't offer Tesla-specific features, but its full coverage rate ranks second-cheapest among the top five Model 3 insurers analyzed.
Travelers
Travelers charges $768 a year for minimum coverage and $2,313 for full coverage on the Tesla Model 3. That's the third-cheapest option among the top five insurers, about 22% below the blended $2,952 full coverage average. Travelers writes policies in 43 states and sells directly to consumers online and through independent agents. The insurer offers a hybrid-electric vehicle discount of up to 5% in select states. That discount is available to Tesla Model 3 owners in qualifying states and further lowers their premiums.
National General
National General averages $633 for minimum coverage and $2,324 for full coverage on the Tesla Model 3, ranking fourth for full coverage and second for minimum coverage behind USAA. National General is part of the Allstate group and writes policies in all 50 states. Its competitive minimum coverage rate makes National General a good option for Model 3 owners who want to meet state legal requirements at the lowest annual cost, though its full coverage pricing is close to Travelers' rate of $2,313.
Nationwide
Nationwide rounds out the top five cheapest Tesla Model 3 insurers at $923 for minimum coverage and $2,405 for full coverage, approximately 19% below the blended $2,952 full coverage average. Nationwide operates in 47 states and offers a SmartRide usage-based program that can save up to 40% for low-mileage or safe drivers. Nationwide doesn't offer Tesla-specific features, but the SmartRide discount can make it the cheapest option for Model 3 owners who drive fewer than 12,000 miles per year.
Cheapest Tesla Model 3 Insurance by Model Year
Tesla Model 3 insurance costs vary by model year, with newer vehicles costing more to insure because replacement and repair costs are higher. Full coverage premiums for a 2024 Model 3 Long Range average $3,317 annually, compared to $2,586 for a 2017 model, a $731 difference.
Minimum coverage rates stay relatively flat across model years, averaging $858 for 2024 and $879 for 2017 models. USAA ranks as the cheapest provider across both model years and both coverage levels.
Cheapest 2017 Tesla Model 3 Insurance
USAA offers the cheapest 2017 Tesla Model 3 insurance at $467 per year for minimum coverage and $1,419 for full coverage. National General, GEICO and Auto-Owners round out the top four for minimum coverage, while National General, Auto-Owners and Travelers follow USAA for full coverage.
Full coverage on a 2017 Model 3 averages $2,586 nationally, or $731 less than the 2024 model, because depreciation reduces the insurer's financial exposure on a total-loss claim.
Rank | Cheapest for Minimum Coverage | Average Annual Premium | Cheapest for Full Coverage | Average Annual Premium (Full) |
|---|---|---|---|---|
1 | USAA | $467 | USAA | $1,419 |
2 | National General | $633 | National General | $1,792 |
3 | GEICO | $651 | Auto-Owners | $1,890 |
4 | Auto-Owners | $671 | Travelers | $2,011 |
5 | Erie | $773 | American Family | $2,156 |
Cheapest 2024 Tesla Model 3 Insurance
USAA offers the cheapest 2024 Tesla Model 3 insurance at $436 per year for minimum coverage and $1,733 for full coverage. National General, Auto-Owners and GEICO rank next for minimum coverage, while Nationwide, Auto-Owners and Travelers follow USAA for full coverage.
Full coverage on a 2024 Model 3 averages $3,317 nationally, about 28% more than the 2017 model average. Newer Tesla models cost more to repair, partly because their driver-assistance sensors need recalibration after a collision. Both factors raise collision and comprehensive premiums.
Rank | Cheapest for Minimum Coverage | Average Annual Premium | Cheapest for Full Coverage | Average Annual Premium (Full) |
|---|---|---|---|---|
1 | USAA | $436 | USAA | $1,733 |
2 | National General | $633 | Nationwide | $2,520 |
3 | Auto-Owners | $639 | Auto-Owners | $2,595 |
4 | GEICO | $654 | Travelers | $2,614 |
5 | Travelers | $760 | American Family | $2,764 |
Why Tesla Model 3 Insurance Is More Expensive
Tesla Model 3 insurance costs more than a comparable gas-powered sedan because parts are harder to source and repairs require specialized technicians. Standard body shops often cannot service Tesla vehicles, so claims route to Tesla-certified repair centers with higher labor rates.
Driver-assistance sensors on the Model 3 also require calibration after most body repairs. That calibration alone can add hundreds of dollars to a typical collision claim. Insurers factor these higher repair costs into full coverage premiums, which is part of why Model 3 full coverage rates run above the national average for comparable sedans.
Battery pack damage is the other major cost driver for Model 3 full coverage rates. A Tesla Model 3 battery replacement can cost $10,000 to $20,000, so any collision severe enough to damage the pack produces a much larger claim than a comparable repair on a gas-powered car.
Tesla vehicles also retain value well compared to the broader sedan market, which keeps replacement-cost exposure high for insurers during the first several years of ownership and sustains premium pricing on newer Model 3 vehicles.
How to Lower Your Tesla Model 3 Insurance Costs
Three strategies produce the largest savings on Tesla Model 3 insurance: comparing quotes, raising your deductible and stacking available discounts. Model 3 owners who apply all three can cut annual premiums by hundreds of dollars.
Compare Quotes from Multiple CompaniesThe gap between the cheapest and most expensive Model 3 insurers in MoneyGeek's dataset exceeds $3,000 per year, with USAA at $1,576 on the low end. Even among the top five cheapest, the spread is $829 annually. Request quotes from Auto-Owners, Travelers, National General and Nationwide at minimum, plus USAA if eligible, and review the cheapest car insurance companies for a wider comparison.
Check for Discount AvailabilityTesla Model 3 owners automatically qualify for anti-theft discounts of 5% to 25% because the vehicle includes GPS tracking and immobilizers. Multi-policy bundling saves 10% to 25%, and usage-based programs like Nationwide's SmartRide can save up to 40% for low-mileage or safe drivers. Travelers offers a hybrid-electric discount of up to 5% in select states.
Choose a Higher DeductibleRaising your collision and comprehensive deductible from $500 to $1,000 cuts full coverage premiums by 15% to 25%. On the Model 3's $2,952 blended full coverage average, that represents $443 to $738 in annual savings. Keep enough in savings to cover the higher out-of-pocket cost after a claim.
Frequently Asked Questions About Tesla Model 3 Insurance
Tesla Model 3 insurance costs $868 per year for minimum coverage and $2,952 per year for full coverage on average across national providers, based on MoneyGeek's analysis of 2017 and 2024 model years. Rates range from $1,576 at USAA to well above $4,000 at the most expensive providers for full coverage. Actual Model 3 premiums depend on model year, location, driving record and coverage selections.
USAA offers the cheapest Tesla Model 3 insurance at $451 per year for minimum coverage and $1,576 per year for full coverage, per MoneyGeek's analysis. Auto-Owners ranks second at $2,243 for full coverage, followed by Travelers at $2,313. Drivers without USAA eligibility will find the lowest widely available rate at Auto-Owners.
The Tesla Model 3 is more expensive to insure than the average sedan, with full coverage averaging $2,952 per year per MoneyGeek's analysis. Model 3 premiums are higher than traditional sedans because parts and labor cost more, and because Tesla vehicles require sensor calibrations for driver-assistance systems after body repairs.
Tesla Model 3 model year affects insurance rates, with newer vehicles costing more to insure than older ones. Full coverage on a 2024 Model 3 averages $3,317 annually, which is $731 more than the $2,586 average for a 2017 Model 3. Minimum coverage rates stay relatively flat across model years, averaging $858 for a 2024 Model 3 and $879 for a 2017 Model 3.
Tesla Insurance can offer cheaper rates than national providers for Model 3 owners with a high Safety Score, but Tesla Insurance is only available in Arizona, California, Colorado, Illinois, Ohio, Oregon, Tennessee, Texas and Virginia. Tesla Insurance uses real-time driving data to calculate monthly premiums, so drivers who brake hard, drive aggressively or follow other vehicles closely may pay more than they would with USAA, Auto-Owners or Travelers.
A Tesla Model 3 needs at least the liability coverage required by your state, plus comprehensive and collision coverage if you financed or leased the vehicle. Most lenders require full coverage with a deductible of $1,000 or lower. Model 3 owners who own the car outright can drop collision and comprehensive to reduce costs, but doing so means paying out of pocket for repairs, which can run high given Tesla's specialized parts and labor requirements.
MoneyGeek analyzed Tesla Model 3 Long Range insurance rates from 16 national providers across all 50 states and Washington, D.C., for the 2017 and 2024 model years. Quotes reflect a 40-year-old driver with a clean driving record and good credit. Minimum coverage rates meet each state's legal liability requirements. Full coverage rates use 100/300/100 liability limits with comprehensive and collision at a $1,000 deductible.
Provider averages represent the mean annual premium across all available ZIP codes and model years in MoneyGeek's rate dataset. The blended full coverage average of $2,952 reflects the mean across both the 2017 and 2024 model years. The 2024 model-year-specific average of $3,317 is cited where rates are discussed for that model year only. Ranking reflects average full coverage premium because full coverage is the most common purchase among Tesla Model 3 owners.
About Mark Fitzpatrick
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident expert in insurance and economics. He has spent nearly a decade covering the market, first at LendingTree and now at MoneyGeek, where he analyzes hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College before earning a master's in economics and international relations from Johns Hopkins University. Before MoneyGeek, he worked in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.