Cheapest Tesla Model Y Insurance: Top 5 Companies by Price

USAA, Auto-Owners and American Family offer the cheapest Tesla Model Y insurance, with annual full coverage premiums starting at $1,785.

Find out if you're overpaying for Tesla insurance.

Written by Mark Fitzpatrick

Updated: June 4, 2026

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Key Takeaways

USAA offers the cheapest Tesla Model Y insurance at $515 for minimum coverage and $1,785 for full coverage, based on MoneyGeek's analysis of national providers.

Auto-Owners ranks as the cheapest non-military option for full coverage at $2,562 per year, followed by American Family at $2,583 and National General at $2,608.

Full coverage rates for a 2024 Model Y Long Range average $3,303 annually. The 2020 model runs $2,989 a year, a gap that traces directly to the higher replacement cost of newer vehicles.

Cheapest Tesla Model Y Insurance Companies

USAA, Auto-Owners, American Family, National General and Nationwide offer the cheapest Tesla Model Y insurance among national providers, per MoneyGeek's analysis of rates across all 50 states. USAA ranks first with an average full coverage premium of $1,785 per year, which is 45% below the Model Y full coverage average of $3,243.

Auto-Owners follows at $2,562, American Family at $2,583, National General at $2,608 and Nationwide at $2,689. These figures cover rates for the Tesla Model Y Long Range across 2020 and 2024 model years, for a 40-year-old driver with a clean record.

Top 5 Cheapest Tesla Model Y Insurance Companies

This table below ranks the five cheapest Tesla Model Y insurers by average annual full coverage premium. Minimum coverage rates reflect each state's legal liability requirements.

Rank	Provider	Min Coverage Avg Annual Premium	Full Coverage Avg Annual Premium
1	USAA	$515	$1,785
2	Auto-Owners	$650	$2,562
3	American Family	$1,077	$2,583
4	National General	$633	$2,608
5	Nationwide	$996	$2,689

Top Tesla Model Y Insurance Company Highlights

The five cheapest Tesla Model Y insurers each offer different strengths for Model Y owners. USAA provides the lowest rates but limits eligibility to military members and families. Auto-Owners and National General lead for widely available low rates without eligibility restrictions, while American Family and Nationwide round out the top five with competitive options.

USAA

Cheapest Overall

USAA offers the cheapest Tesla Model Y insurance at $515 per year for minimum coverage and $1,785 for full coverage, based on MoneyGeek's analysis. Its full coverage rate is $777 below the next-cheapest provider and 45% below the Model Y national average of $3,243. USAA insures Tesla vehicles through standard auto policies without a Model Y-specific program. Eligibility is limited to current and former military service members, their spouses and their children, which restricts access but produces the largest premium savings for those who qualify.

Auto-Owners

Cheapest Widely Available Option

Auto-Owners ranks as the cheapest widely available insurer for the Tesla Model Y at $650 for minimum coverage and $2,562 for full coverage annually, placing it 21% below the Model Y average. Auto-Owners operates through independent agents in 26 states and doesn't offer a direct-to-consumer platform. The insurer does not offer Tesla-specific features but prices below most national competitors for Model Y coverage in its service area.

American Family Insurance

American Family charges $1,077 per year for minimum coverage and $2,583 for full coverage on the Tesla Model Y, ranking third for full coverage and 20% below the national average. American Family writes policies in 19 states, primarily in the Midwest and West. The insurer offers a KnowYourDrive usage-based discount program that can cut premiums by up to 40% for low-mileage or safe-driving Model Y owners.

National General

National General averages $633 for minimum coverage and $2,608 for full coverage on the Tesla Model Y, ranking fourth for full coverage but second for minimum coverage behind USAA. National General is part of the Allstate group and writes policies in all 50 states, making it one of the most accessible options in the top five for Model Y owners outside American Family's or Auto-Owners' service areas.

Nationwide

Nationwide rounds out the top five cheapest Tesla Model Y insurers at $996 for minimum coverage and $2,689 for full coverage, with a full coverage average 17% below the Model Y national 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. Model Y owners who work from home or drive fewer than 12,000 miles per year stand to benefit most.

Cheapest Tesla Model Y Insurance by Model Year

Tesla Model Y insurance costs vary by model year, with newer vehicles costing more to insure due to higher replacement and repair expenses. Full coverage premiums for a 2024 Model Y Long Range average $3,303 annually, compared to $2,989 for a 2020 model, a $314 difference.

Minimum coverage rates stay relatively flat across model years, averaging $858 for 2024 and $879 for 2020 models. USAA ranks as the cheapest provider across both model years for full coverage.

Cheapest 2020 Tesla Model Y Insurance

USAA offers the cheapest 2020 Tesla Model Y insurance at $524 per year for minimum coverage and $1,734 for full coverage. National General, Auto-Owners and GEICO follow for minimum coverage, while National General, Auto-Owners and American Family rank behind USAA for full coverage. Full coverage on a 2020 Model Y averages $2,989 nationally, reflecting the lower replacement cost of a depreciated vehicle compared to the current model year.

Rank	Cheapest for Min Coverage	Avg Annual Premium	Cheapest for Full Coverage	Avg Annual Premium (Full)
1	USAA	$524	USAA	$1,734
2	National General	$633	National General	$2,343
3	Auto-Owners	$664	Auto-Owners	$2,456
4	GEICO	$685	American Family	$2,462
5	Erie	$788	Travelers	$2,561

Cheapest 2024 Tesla Model Y Insurance

USAA offers the cheapest 2024 Tesla Model Y insurance at $505 per year for minimum coverage and $1,836 for full coverage. National General, Auto-Owners and GEICO rank next for minimum coverage, while Auto-Owners, Nationwide and American Family follow USAA for full coverage.

Full coverage on a 2024 Model Y averages $3,303 nationally, making it 10% more expensive to insure than the 2020 model. Newer Model Y vehicles carry higher parts costs and calibration requirements for driver-assistance sensors, raising collision and comprehensive premiums.

Rank	Cheapest for Min Coverage	Avg Annual Premium	Cheapest for Full Coverage	Avg Annual Premium (Full)
1	USAA	$505	USAA	$1,836
2	National General	$633	Auto-Owners	$2,668
3	Auto-Owners	$635	Nationwide	$2,669
4	GEICO	$683	American Family	$2,704
5	Travelers	$780	National General	$2,872

Why Tesla Model Y Insurance Is More Expensive

Tesla Model Y insurance costs more than a comparable gas-powered SUV because parts sourcing is limited and repairs require Tesla-certified technicians. Standard auto shops can't service Model Y body or sensor systems, routing claims to Tesla repair centers with higher labor rates.

Driver-assistance sensors require recalibration after most body repairs, adding hundreds of dollars to a typical collision claim. Those elevated repair costs show up in full coverage premiums across all national insurers.

Battery pack exposure is the other main driver of higher Model Y premiums. A replacement pack runs $10,000 to $20,000, so any collision severe enough to reach the battery produces a far larger claim than a comparable incident on a gas-powered SUV. Tesla vehicles also hold their value better than average, keeping total-loss exposure elevated for the first several years of ownership and sustaining higher full coverage pricing on newer Model Y vehicles.

How to Lower Your Tesla Model Y Insurance Costs

The biggest savings on Tesla Model Y insurance come from three moves: comparing quotes across providers, raising your deductible and stacking available discounts. Used together, they can cut your premium more than any single change alone.

Compare Quotes from Multiple Insurers
The gap between the cheapest and most expensive Model Y insurer in MoneyGeek's analysis spans thousands of dollars per year. Even among the top five cheapest providers, the difference runs $904 annually. Request quotes from Auto-Owners, American Family, National General and Nationwide at minimum, plus USAA if eligible, and check the cheapest car insurance companies for a wider comparison.
Increase Your Deductible
Raise your collision and comprehensive deductible from $500 to $1,000 to cut full coverage premiums by 15% to 25%. On the Model Y's $3,243 full coverage average, that represents $487 to $811 in annual savings. Confirm you have enough set aside to cover the higher out-of-pocket cost before you file a claim.
Ask Your Insurer About Discounts
Tesla Model Y owners automatically qualify for anti-theft discounts of 5% to 25% because the vehicle includes GPS tracking and immobilizers as standard equipment. Multi-policy bundling saves 10% to 25%, and usage-based programs like Nationwide's SmartRide or American Family's KnowYourDrive can save up to 40% for low-mileage or safe drivers. National General, as part of the Allstate group, also offers a new-car discount in some states for vehicles purchased within the last two years.

Cheap Tesla Model Y Insurance: Bottom Line

USAA is the cheapest Tesla Model Y insurer at $1,785 per year for full coverage. Drivers without USAA eligibility should start with Auto-Owners, American Family, National General and Nationwide for the cheapest widely available rates. Get quotes from at least three of the top five to find the best coverage for your needs.

Frequently Asked Questions About Tesla Model Y Insurance

Tesla Model Y insurance costs $858 per year for minimum coverage and $3,243 for full coverage on average across national providers, based on MoneyGeek's analysis. Rates vary by provider, with USAA offering the lowest full coverage rate at $1,785. Actual premiums depend on model year, location, driving record and selected coverage levels.

USAA offers the cheapest Tesla Model Y insurance at $515 per year for minimum coverage and $1,785 for full coverage, per MoneyGeek's analysis. Auto-Owners ranks second at $2,562 for full coverage, followed by American Family at $2,583. Drivers without USAA eligibility will find the lowest widely available rate at Auto-Owners.

The Tesla Model Y costs slightly more to insure than the Model 3, with full coverage averaging $3,243 per year for the Model Y versus approximately $2,952 for the Model 3, based on MoneyGeek's analysis. The Model Y's higher vehicle value and larger body panels contribute to modestly higher collision and comprehensive premiums. Both models share similar driver-assistance sensor complexity, so the $291 difference is smaller than what either model carries over a comparable gas-powered vehicle.

Tesla Model Y model year does affect insurance rates. Full coverage on a 2024 Model Y Long Range averages $3,303 annually, compared to $2,989 for a 2020 Model Y, a $314 difference. Minimum coverage rates stay relatively flat across model years because state liability requirements do not vary based on vehicle age.

Tesla Insurance can offer competitive rates for Model Y owners with a high Safety Score, but it is only available in Arizona, California, Colorado, Illinois, Ohio, Oregon, Tennessee, Texas and Virginia. Tesla Insurance calculates monthly premiums based on real-time driving behavior, so drivers who accelerate aggressively or brake hard may pay more than they would with national insurers like USAA or Auto-Owners.

Model Y owners who own the vehicle outright are not required to carry full coverage, but dropping comprehensive and collision leaves them responsible for all repair costs, which can run into the thousands of dollars for moderate body damage on a Tesla. Drivers who financed or leased the Model Y are usually required by their lender to maintain full coverage with a deductible of $1,000 or lower until the loan is paid off.

MoneyGeek analyzed Tesla Model Y Long Range insurance rates from 16 national providers across all 50 states and Washington, D.C., for the 2020 and 2024 model years. Quotes are based on 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. Rankings are ordered by average full coverage premium because full coverage is the most common purchase among Tesla Model Y owners.

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About Mark Fitzpatrick

Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he produces original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.

Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.

Mark holds a B.A. from Boston College and an M.A. in Economics and International Relations from Johns Hopkins University. He started his career in financial risk management at State Street and is also a five-time “Jeopardy!” champion.

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