Teslas are more expensive to insure than many other cars due to their high repair costs, which increases the cost of collision coverage. The price of your policy depends on the Tesla model and trim you choose, your location and driving history, and the amount of coverage you choose.
The cheapest insurer for tesla vehicles is tesla insurance, tesla’s own insurance product. however, it is currently only available in nine states and has some limitations that not all drivers will love.
Reading: How much is tesla insurance monthly
how much does insurance cost for a tesla?
the average cost to insure a new tesla is $3947 per year. however, the price varies significantly depending on the insurer you choose, as well as the model you own.
Tesla’s newest model, the y model, is the least expensive model to insure. While it’s not the cheapest car Tesla makes, it’s a crossover that’s slightly larger than the cheaper Model 3. we’ve found that crossover-style vehicles tend to have the lowest insurance prices.
the most expensive tesla to insure is the model s, averaging $4,956 per year for the base model. Below is a comparison of insurance costs for each new Tesla model for a sample driver in Texas, based on quotes from five major insurers (including Tesla’s own offering).
Which companies offer the cheapest insurance for a tesla?
In our comparison of the largest insurers, tesla insurance offered the cheapest auto insurance rates to insure a tesla in texas, at an average rate of $2,030 per year for a new tesla: 48% less than average. state farm was the second cheapest and most affordable option among available insurers nationally, with an average price of $2,626.
To ensure you get the most affordable tesla insurance rates, we recommend that you compare quotes from at least three different insurers.
tesla insurance: rates per model
While the average cost to insure a new Tesla vehicle is $3,732 per year, the price varies significantly by model. The cheapest Tesla to insure is the Y model, which has a typical insurance rate of just $3,057 per year.
The Model 3 Sedan is Tesla’s least expensive model to buy, currently starting at $44,990 before incentives or add-ons. but the cost of insuring is still quite high, at $3,386 per year for the newest base model.
Opting for any of the more expensive Model 3 variants, which have larger batteries and higher speeds, can add a few hundred dollars to your insurance bill.
model y is the cheapest tesla to insure, with an average rate of just $3,057 per year for the base model. that’s 13% less than the average rate across all new teslas.
Model Y is a compact crossover, and these types of cars tend to command the most affordable rates compared to smaller sedans as well as larger, more expensive full-size SUVs.
Tesla’s first mass-produced vehicle, the Model S, is also the most expensive to insure, with a typical insurance price of $4,956 per year. the s model starts at $94,990 without discounts or add-ons.
Surprisingly, the top-end “checkered mode” model, with a top speed of 175 mph, is less expensive to insure than the base model, albeit only $93 per year.
The Model X, Tesla’s high-end full-size SUV, costs an average of $4,275 a year to insure. that’s $759 more than the typical price on all models.
The cheapest insurer for the Model X is Tesla’s own insurance program, which offers a typical rate of $2,095 a year.
tesla insurance program review
Tesla’s self-insured program, currently available in nine states, is only available to existing Tesla owners.
Tesla’s own insurance rates are substantially cheaper than those of competing insurers. Typical rate is $2,030 per year on all new Tesla models, which is 49% less than the average rate.
drivers with high safety scores can see even more savings: a perfect 100 gets you a 37% discount off the base rate.
tesla does not consider any of the following when setting auto insurance rates:
The biggest drawback to Tesla insurance is that it only offers coverage for some non-Tesla cars. So if you have a family with multiple cars, you may need to maintain two separate auto insurance policies, requiring you to sign up for multiple insurance policies and sacrificing a potential bundle discount in the process.
where is tesla insurance available?
Tesla’s own insurance coverage is available exclusively to Tesla owners in eleven states. Tesla has stated that it intends to sell insurance in 45 states by the end of 2022.
tesla insurance rates by security score
While tesla insurance rates are very affordable for most drivers, your price drops even lower if you can maintain a high safety score. a perfect score of 100 will get you a rate of just $887 on a new Model 3, a surprisingly affordable price (overall average was $3,386 per year).
tesla adjusts fees according to five-point security score increments. therefore, if your average score is between 95 and 99, your rate will increase to $1,040 per year.
how does the tesla security score work?
Generally speaking, Tesla Safety Score works much like other telematics auto insurance, similar to Progressive Snapshot. monitors your driving habits and assigns a score between 0 and 100, with most drivers receiving a score of 80 or higher.
unlike many other telematics systems, tesla is particular about what makes your score go down:
Your Safety Score is calculated daily and is a weighted average based on driving time over the last 30 days.
tesla insurance rates in california
tesla insurance in california works differently than in other states because your california rates are not based on your security score. however, tesla’s own insurance program remains the cheapest option available in the golden state. Its average price across all 2022 Tesla models is $2,246 per year, 42% less than the state average and $805 cheaper than the next best thing, Kemper Insurance.
why are teslas so expensive to insure?
Tesla cars are expensive to insure because they are expensive to buy and repair. Teslas have especially high collision coverage costs due to their high repair and maintenance costs, which are more expensive than other luxury vehicles or EVs.
That’s why the cost of repairing a tesla, even for a minor fender bender, can easily run into several thousand dollars. And as cars integrate more custom parts and technology, the cost per collision may continue to rise.
Although the autopilot technology built into tesla cars is aimed at reducing crashes, a tesla’s quotes also take into account the cost of replacing all that high-end tech after a crash.
frequently asked questions
all auto insurance quotes are for a one year full coverage policy for a 30 year old driver with good credit. Unless otherwise noted, rates are state averages in Texas.
valuepenguin’s analysis used insurance rate data from quadrant information services. These rates were obtained publicly from insurer filings and should be used for comparison purposes only; your own quotes may be different.