Tesla Car Insurance

Tesla's average car insurance cost is around $55 per month for minimum coverage and $214 per month for full coverage. But costs vary drastically depending on the model you own and whether you bought it new or used.

On the new-car side, the Tesla Model 3 and Model Y cost almost exactly the same to insure. If you are shopping new, the cost of insurance is the same, so, vehicle costs aside, your choice between these two models has little impact on how much you will pay, whether you want a sedan or an SUV.

Stepping up to the Tesla Model S or X adds about $85–98 a month, but proportionally, the premium models are actually cheaper to insure relative to their sticker price than the Model 3 and Y.

*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.

Yes, Teslas are expensive to insure, ranking near the absolute bottom among the companies we reviewed. The only vehicles that cost more to insure are hypercars from Ferrari and Bugatti, as well as high-end luxury models from Rolls-Royce.

But if you own a used Tesla model with a couple of years between the showroom floor and your garage, the cost of insurance changes, and which models are worth the long-term investment when insurance rates are taken into consideration.

Tesla vehicles depreciate quickly, but insurance rates don't track the car's value at the same rate. For example, a 2012 Model S is worth around $10,950 today, but still costs $231 a month to insure — that's more than a quarter of the car's value every year, just on a full coverage premium. 

Before buying a used Tesla, it's worth asking whether the coverage level you're carrying still makes financial sense given the car's actual cash value.

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.

*Rates are for a driver with good credit and no driving violations.

Tesla vehicles have higher insurance premiums due to their high value and costly parts, which makes repairs or replacements more expensive after an accident. Tesla drivers are also among the riskiest on the road, placing second in a recent LendingTree study, which impacts rates even for those without driving violations.

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.

The cheapest overall car insurance company for all Tesla models, averaged across all model years, is State Farm, with the lowest rates of $36 for minimum coverage and $144 for full coverage. Travelers offers the second-cheapest minimum coverage, charging Tesla owners $48 monthly, and should be quoted with State Farm when shopping for low-cost Tesla insurance, as the most affordable auto insurer varies by state.

For Tesla owners needing full coverage to protect a financed or leased vehicle, or to pay for repairs to an at-fault accident that would otherwise total their vehicle, State Farm is the cheapest, averaging $144 monthly, followed by Nationwide at $164.

The actual cost of insuring your Tesla is largely determined by your make and model, so the overall cheapest option might not be the most affordable for your model and year.

The most affordable insurance for your Tesla depends more on the model and year than which company offers the cheapest rates on average. State Farm provides the cheapest car minimum coverage car insurance for the Tesla Model 3, Model S, Model X and Model Y for model years 2020 through 2022.

If your vehicle is still financed or leased, the cheapest insurer depends on the model and year. For most Tesla owners, State Farm offers the most affordable full coverage premiums, ranging from $1,206 annually for a 2020 Tesla Model Y to $2,063 annually for a 2022 Tesla Model S. For the Model Y, GEICO should be your first call for a full coverage quote; you can get rates ranging from $1,206 to$ 1,276 anually depending on the Model Year.

Below, you can go deeper and find the cheapest overall Tesla car insurance company for your Tesla by using the filter to select your model year, then find or compare your model's lowest rates and provider.

State Farm is the best-rated car insurance company for Tesla vehicles, earning MoneyGeek's highest score of 4.49/5. Not only does State Farm offer the lowest rates for Teslas (36/month), it offers the highest level of customer service - its customers report friendly and helpful agents that walk them through coverage options, discount availability, and managing driver additions and family policies for one of the most costly vehicles to insure.

Travelers is the third-most affordable full-coverage provider at $178 per month, but it offers additional coverage options that other auto insurers don't, including protection for your new Tesla and rate-hike prevention after an accident.

Travelers' Premier New Car Replacement pays to replace a new car with one of the same make and model if it's totaled within the first five years of ownership, and its Accident Forgiveness through the Responsible Driver Plan forgives one at-fault accident to help protect against a rate increase.

We've outlined some tips below to help you get the best deal on Tesla insurance for your vehicle.

Tesla car insurance costs are among the highest in the U.S. They are well above average compared to other brands, but affordable options are available. Compare providers to find the best deal.

Below are MoneyGeek expert answers to frequently asked questions about Tesla car insurance.

MoneyGeek's analysis of 80,676 Tesla insurance quotes draws on data from Quadrant Information Services. The baseline profile is a 40-year-old driver with good credit, a clean record and 12,000 annual miles. Minimum coverage reflects each state's requirements. Full coverage includes 100/300/100 liability limits and a $1,000 deductible.

Data Sources include:

AM Best for financial strength ratings for insurers, J.D. Power for industry research and analytics and NAIC for consumer complaint and insurance data. We also used Quadrant Information Services to get car insurance pricing and comparative data

Learn more about MoneyGeek's methodology.