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: May 1, 2026
Advertising & Editorial Disclosure
Key Takeaways
USAA offers the cheapest Tesla Model 3 insurance at $451 for minimum coverage and $1,576 for full coverage, based on our analysis of national providers.
Auto-Owners ranks as the cheapest non-military option for full coverage at $2,243 per year, followed by Travelers at $2,313 and National General at $2,324.
Full coverage rates for a 2024 Model 3 average $3,317 annually, compared to $2,586 for a 2017 model, reflecting the higher replacement cost of newer vehicles.
Cheapest Tesla Model 3 Insurance Companies
Top 5 Cheapest Tesla Model 3 Insurance Companies
The table below ranks the five cheapest Tesla Model 3 insurers by average full coverage premium. Minimum coverage rates reflect each state's legal liability requirements.
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 reflects 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
The five cheapest Tesla Model 3 insurers each offer different strengths for Model 3 owners. USAA has the lowest rates but limits eligibility to military members and families. Auto-Owners and Travelers lead for widely available low rates, while National General and Nationwide round out the top five with competitive options in specific states.
Cheapest Overall
USAA
USAA offers the cheapest Tesla Model 3 insurance at $451 per year for minimum coverage and $1,576 for full coverage. USAA's full coverage rate is $667 below the next-cheapest provider, Auto-Owners, and 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 without a Tesla-specific program. Eligibility is limited to current and former military service members, their spouses and their children, which narrows the customer base but delivers the largest premium savings for those who qualify.
Cheapest for Most Tesla Model 3 Owners
Auto-Owners
Auto-Owners ranks as the cheapest widely available insurer for the Tesla Model 3 at $655 for minimum coverage and $2,243 for full coverage annually. 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 does not offer Tesla-specific features but consistently prices below national competitors for Tesla models.
Travelers charges $768 per year for minimum coverage and $2,313 for full coverage on the Tesla Model 3, making it the third-cheapest option and approximately 22% below the blended $2,952 full coverage average. Travelers writes policies in 43 states and sells directly to consumers online as well as through independent agents. The insurer offers a hybrid-electric vehicle discount of up to 5% in select states, which can apply to Tesla Model 3 owners and reduce the annual premium further.
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 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 does not 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, making it 28% more expensive to insure than the 2017 model. Newer Tesla models carry higher parts costs and calibration requirements for driver-assistance sensors, which raises 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, which adds hundreds of dollars to a typical collision claim. These higher claim costs are priced into full coverage premiums across every national insurer.
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 deliver 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 Companies
The 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 Availability
Tesla 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 Deductible
Raising 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
How much does Tesla Model 3 insurance cost?
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.
Which company has the cheapest Tesla Model 3 insurance?
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.
Is the Tesla Model 3 expensive to insure?
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.
Does the Tesla Model 3 model year affect insurance rates?
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.
Does Tesla Insurance offer cheaper rates than national providers?
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.
What coverage does a Tesla Model 3 need?
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 be significant 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 insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights — on products ranging from car, home and renters insurance to health and life insurance — have been featured in The Washington Post, The New York Times and NPR among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to analysis of the personal insurance market. He's also a five-time Jeopardy champion!