How Much Tesla Car Insurance Costs — By Model
When shopping for the cheapest insurance for a Tesla, premiums vary depending on your specific model, personal driving history and age. They’ll also be different from company to company. While the least expensive Tesla to insure is the Model 3, rates are still significantly higher than the average car insurance premium.
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Tesla electric cars have high repair costs, making them expensive to insure. Average car insurance rates range from $1,712 per year for the Tesla Model 3 to a whopping $2,878 for the Tesla Model Y.
To help you find the cheapest insurance for a Tesla, MoneyGeek broke down car insurance costs by model, model year and insurance company so you can find the best solution for your budget. Don’t forget to check into car insurance sold by Tesla, too. You won’t necessarily get a better Tesla insurance quote than traditional car insurance companies, but it doesn’t hurt to ask.
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Progressive offers the cheapest rates for the Tesla Y, S and X models — as much as $1,247 lower than the average premium from all insurers.
State Farm has the least expensive premiums for the Tesla Model 3, or $309 less than the average insurance premium for the model.
Tesla offers its own car insurance policies. The company claims to provide 20% to 30% lower rates than its competitors.
How Much Tesla Insurance Costs — By Model
When shopping for the cheapest insurance for a Tesla, different models have different costs to insure. The most expensive model to insure is a Model Y, at an average annual rate of $2,878. The most affordable is the Model 3, at $1,712.
Note that these average rates are calculated using premiums across all model years. Older models of the S, X and 3 (which launched in 2016) are generally less expensive to insure than newer models, such as the Model Y (which launched in 2020).
Tesla Model Insurance Costs - Overall and by Model Year
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Rates can vary — even for the same model — based on your car’s specific features and trim level. They can also fluctuate depending on factors unique to you, such as your age, driving record and location. The sample premiums provided by MoneyGeek are for the lowest cost trims as described in the methodology section. A Tesla with more expensive parts and features may be more costly to insure.
Why Is Insurance for a Tesla So Expensive?
MoneyGeek found the average car model costs $1,427 per year to insure. In comparison, Tesla models cost hundreds or thousands more per year to cover.
While car insurance companies don’t explicitly state why certain car models are more expensive to insure than others, there is a correlation between how expensive the car is to repair and how much it costs to cover. Electric vehicles are usually more costly to repair than non-electric vehicles. Tesla cars must also be repaired by Tesla-approved body shops, which are limited in number. In addition, Tesla vehicles often require custom parts or technology, increasing the cost of repairs.
Car insurers don’t usually share why some car models are more expensive to insure than others. Generally, the more expensive a car is to repair, the more it costs to insure.
The Cheapest and Best Car Insurance for a Tesla
To find the cheapest insurance for a Tesla, keep in mind your Tesla insurance quote depends on the level of coverage you need.
If you’re looking to save money, opting for the cheapest company might be your best option. MoneyGeek found that Progressive is generally the most affordable provider for Teslas among major insurance companies.
If you want the best insurance company, you’ll want to balance affordability and quality service. With this in mind, MoneyGeek still found that Progressive is the best option for Tesla owners. If you live in California, you may also want to consider insurance policies sold by Tesla.
Cheapest Car Insurance Companies for a Tesla
The cheapest insurance for a Tesla comes from Progressive, which, on average, is the most affordable company to insure the Model Y ($1,631), S ($1,721) and X ($1,587). State Farm offers the lowest premiums for the Model 3, with average rates of $1,403.
MoneyGeek recommends getting Tesla insurance quotes from at least three different companies to find the most affordable premium for your unique situation. Shopping around for the cheapest car insurance rate can help you save hundreds of dollars every year. For example, buying insurance from Progressive for the Model Y is $1,247 less than the average premium for the model.
Cheapest Companies to Insure a Tesla - By Model
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Best Car Insurance Companies for a Tesla
To determine the best insurance for a Tesla, MoneyGeek calculates scores for insurers based on consumer satisfaction, complaints, financial stability and affordability. Based on this scoring system, Progressive and State Farm remain the best car insurance choices for all Tesla models.
Note that USAA technically has the highest score for all Tesla models; however, it was excluded from this analysis because only military families are eligible. Click on your model name below to see why MoneyGeek chose the best car insurer for your specific model.
Best Companies to Insure a Tesla - By Model
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*Satisfaction, complaints, financial stability and affordability scores are all out of 5.
Is Tesla’s Own Insurance Better Than Traditional Car Insurance?
Currently available only in California, Tesla offers car insurance directly. The company states that, in some cases, its rate is 20%–30% lower than other car insurance companies.
If you’re a California resident, MoneyGeek recommends getting a Tesla insurance quote and seeing how your sample premium compares to other companies' offers. However, if you value customer service more than affordability, you might want to steer clear of Tesla. State National, which fronts Tesla’s insurance, has a complaint ratio 2.2 times higher than the national average, according to the National Association of Insurance Commissioners (NAIC).
Just as Tesla looks to expand its coverage offering beyond California, the company also is looking to lower costs for safe drivers by tracking their behavior and providing discounts for responsible practices. This approach — often referred to as pay-per-mile or behavior-based insurance — is growing, even among traditional providers.
Keep in mind that Tesla only offers car insurance, so you won’t be eligible for a home and auto policy bundle, which could provide additional discounts to reduce your overall costs.
MoneyGeek collected insurance quotes for all Tesla car models using a sample driver profile. The sample driver is a 40-year-old male purchasing a full coverage policy with the following coverages:
- $100,000 in bodily injury liability insurance per person
- $300,000 in bodily injury liability insurance per accident
- $100,000 in property damage liability insurance per accident
- Comprehensive and collision insurance with a $1,000 deductible
Prices represent averages and can guide what rates to expect but generally won't match your specific costs.
To determine the best car insurance for a Tesla, MoneyGeek created a scoring system measuring affordability, user satisfaction scores from J.D. Power, customer complaint scores from the National Association of Insurance Commissioners (NAIC) and financial strength scores from A.M. Best.
- Why are electric cars — and Teslas especially — more expensive to insure?
- How does Tesla’s own insurance differ from traditional car insurance companies?
- What steps can I take to lower insurance rates for my Tesla?
Managing Director of Brantley Risk and Insurance Center, IIANC Distinguished Professor of Insurance at Appalachian State University
Assistant Professor at California Polytechnic State University
Assistant Professor of Research, Center for Energy Studies at Louisiana State University
About the Author
- Tesla. "Support: Tesla Insurance." Accessed August 5, 2021.