Teslas cost around $55 monthly for minimum coverage car insurance and $214 for full coverage. The automaker is the second most expensive overall, ranking 22nd out of 23 for affordability among the vehicle manufacturers we studied.
Tesla Car Insurance
Updated: November 13, 2025
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Key Takeaways
State Farm and GEICO offer the best and cheapest overall car insurance for Tesla vehicles with rates starting at $33 monthly.
Tesla auto insurance costs range from $399 to $3,365 annually for most drivers, but this can depend on various factors like age, model, and coverage type chosen.
Tesla car insurance is generally more expensive than most top automotive brands, ranking 22nd out of 23 automakers we studied for both minimum and full coverage.
How Much Is Tesla Insurance on Average?
Coverage Level | Average Monthly Rate | Average Annual Rate | Affordability Ranking (Out of 23) |
|---|---|---|---|
Minimum coverage | $55 | $663 | 22nd |
Full coverage | $241 | $2,571 | 22nd |
*Rates are for a 40-year-old driver with good credit and no driving violations insuring 2012 to 2022 models for the Tesla Model 3, Y, X and S.
Tesla Car Insurance Cost by Model
Our research found that the most expensive Tesla model is the Model X, with monthly rates of $71 for minimum coverage and $242 for full coverage. The Model 3 is the least expensive to insure, with average monthly rates of $51 for minimum coverage and $169 for full coverage.
Usually, newer and more valuable vehicles come with higher auto insurance costs. The opposite is true for older, less costly models. You can compare rates for your Tesla by model and year in the table that follows.
Data filtered by:
Tesla Model 3
2017
| Tesla Model 3 | 2017 | $621 | $1,894 |
*Rates are for a 40-year-old driver with good credit and no driving violations.
Tesla Car Insurance Cost by Age
Tesla insurance costs vary from $680 to around $11,781 annually, depending on your age and coverage level chosen. Teenagers pay the most for car insurance, and rates decrease until you're about 60. Once you pass this point, auto insurance costs increase slightly as you reach more senior ages. The table below shows how age affects Tesla insurance costs.
Data filtered by:
16
| 16 | $3,675 | $11,781 |
*Rates are for a driver with good credit and no driving violations.
Is Tesla Insurance Expensive?
Tesla vehicles often have higher insurance premiums due to their high value and costly parts, which make repairs or replacements more expensive after an accident. Tesla drivers are also some of the riskiest on the road, placing second in a recent LendingTree study, which impacts rates even for those without driving violations.
How Expensive Is Tesla Insurance Compared to Similar Vehicles?
To put into perspective how much more expensive Tesla is than similar models, we've compared rates for a 2024 Model Y to comparable luxury sedans and EVs in terms of MSRP. While minimum coverage rates are similar, full coverage rates are up to 29% more expensive.
Make and Model | Average MSRP | Annual Minimum Coverage Rate | Annual Full Coverage Rate |
|---|---|---|---|
Tesla Model Y | $49,380 | $570 | $2,207 |
Audi A4 | $48,045 | $573 | $1,729 |
BMW i3 | $48,970 | $549 | $1,729 |
BMW 3 Series | $53,045 | $580 | $1,708 |
Cheapest Tesla Car Insurance Companies
The cheapest overall car insurance company for Tesla vehicles is State Farm with average monthly rates of $36 for minimum coverage and $144 for full coverage. However, Travelers, Nationwide, GEICO and Progressive are also all affordable options.
| State Farm | $36 | $144 |
| Travelers | $48 | $178 |
| Nationwide | $62 | $164 |
| GEICO | $43 | $191 |
| Progressive | $55 | $208 |
Cheapest Car Insurance by Model
While the above companies are the cheapest overall, State Farm is the cheapest car insurance for the Tesla Model 3, Model S, and Model X. However, GEICO is the most affordable overall for the Tesla Model Y.
Below you can dig deeper and find the cheapest overall Tesla car insurance company for your particular model and year.
Data filtered by:
Tesla Model S
2012
| State Farm | $432 | $1,383 |
| Nationwide | $573 | $1,533 |
| Travelers | $624 | $1,799 |
| GEICO | $529 | $1,914 |
| Allstate | $484 | $2,008 |
Best Car Insurance for Tesla Vehicles
Based on our research, the best companies overall to insure your Tesla with are State Farm, Nationwide, Travelers, GEICO and Progressive. Each company offers a great mix of low rates, extensive coverage options and good customer service reputations.
How to Find the Best Cheap Car Insurance Company for Your Tesla
Below we've broken down some core tips to get you started on getting the best deal for Tesla insurance on your vehicle.
- 1Assess your coverage needs
Decide how much insurance you need, what deductible you can afford and what other optional coverages can help you save more in case of an accident. Use our car insurance coverage needs calculator to get a personalized recommendation and compare options.
- 2Research average costs and discounts
Research Tesla insurance costs to understand how much you're saving on average once you compare quotes. This will give you an idea of how good a deal you're getting.
- 3Compare multiple providers
Gather quotes from multiple providers and compare coverage, deductibles and limits apples to apples. Research reputations, discounts and offerings to find the best fit.
- 4Consider Tesla's insurance program
When comparing providers, consider Tesla's insurance program, which, similar to telematics, bases rates on driving behavior. Many Tesla drivers report lower rates, making it worth exploring.
Tesla Auto Insurance Cost: Bottom Line
Tesla vehicle insurance costs are among the highest in the U.S., well above average compared to other brands. However, affordable options are available. Compare providers across multiple platforms to find the best deal.
Tesla Car Insurance: FAQ
Below are MoneyGeek expert answers to frequently asked questions about Tesla car insurance.
Which insurance company is the cheapest for Tesla?
State Farm, Nationwide and GEICO are the three cheapest car insurance providers for all Tesla Models regardless of coverage level, driver profile and model.
How much is Tesla car insurance?
On average when considering all models, Tesla car insurance costs around $55 monthly or $663 yearly for minimum coverage and $214 per month or $2,571 yearly for full coverage. However, rates can vary widely depending on your driver profile, model and coverage level chosen, ranging anywhere from $399 to $11,781 per year.
Is car insurance on a Tesla more expensive?
Yes, a Tesla is typically more expensive to insure because it's both an electric car and luxury vehicle, leading to higher MSRPs and repair costs overall. Tesla parts are also much more specialized than other brands, making it more difficult to source and increasing the costs of repair.
Which Tesla model is the cheapest to insure?
Overall, the Tesla Model 3 is the cheapest overall Tesla vehicle to insure mostly due to it's lower value and repair costs.
How We Determined Tesla Auto Insurance Costs
MoneyGeek analyzed 80,676 insurance quotes for Tesla models using data from Quadrant Information Services. Rates reflect a 40-year-old driver with good credit, a clean record and 12,000 miles driven annually. Minimum coverage uses each state’s requirements, while full coverage includes 100/300/100 liability limits and a $1,000 deductible.
Data Sources
- AM Best: Financial strength ratings for insurers
- J.D. Power: Industry research and analytics
- NAIC: Consumer complaint and insurance data
- Quadrant Information Services: Car insurance pricing and comparative data
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- LendingTree. "Tesla, Ram, Subaru Have Worst Drivers, While Mercury, Pontiac, Cadillac Have Best." Accessed June 17, 2025.