Car insurance for a Tesla Model S


Teslas are reportedly the best-selling electric vehicles in the country, with all Tesla models appearing in the top 10. The Tesla S is the company’s luxury sport model. While Tesla ownership may help you save gas, there are still costs. According to Bankrate’s 2021 study of quoted annual premiums, Tesla Model S car insurance averages $3,802 per year.

Tesla Model S insurance costs can vary depending on many factors, including the year of your vehicle, upgrades to the equipment, limits for coverage, driving record and location, as well as other unique variables. Here are some factors that can affect your premiums.

What is the cost of Tesla Model S insurance?

Based on annual premiums, the Tesla Model S insurance costs $3,802 per annum for full coverage. Rates can be higher or lower depending upon which insurance provider you choose. Because of their manufacturing costs and the materials used, Teslas will be more costly to insure. Other than the personal factors that may affect car insurance costs, there are model-specific items that can impact vehicle coverage rates.

  • Crash rate stats per make/model: The Model S exceeded IIHS vehicle safety ratings back in 2013, earning 5.4 stars out of 5 stars. No vehicle has ever surpassed the rating system of the agency. Since the original rating, the model continues to earn superior ratings from the IIHS, except for headlamps, which the IIHS believes do not provide sufficient visibility in curves.
  • Prices of parts: Tesla parts can be expensive, and there are few aftermarket options. The sunroof may be the most expensive part of the S, with a price of $4,500. A Tesla repair is a complex task. There are very few authorized dealers and repair shops that can do the job. In addition, Teslas are manufactured using unibody casting. A small amount of damage to a panel’s front can mean that a large section needs to be replaced. Cast frames are safer but more costly if damage is to specific areas.
  • Safety features: Tesla Model S vehicles come with a number of standard safety features that may offset the cost of coverage. Multiple cameras are installed to monitor the surroundings and alert the driver if there are any potential blind spots or hazards. Airbags are installed throughout the cabin, including overhead and knee airbags. The car is kept on the road by traction control.
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Tesla Model S insurance

Bankrate’s review of quoted annual premiums indicate minimum coverage for a Tesla Model S is not far from the national average for an economy sedan. Due to the car’s value, many Tesla drivers will opt for full coverage. This provides collision and comprehensive coverage. Full coverage for Tesla Model S is a lot more expensive than the $1,674 national average (average based upon a 2019 Toyota Camry). This is because the Tesla Model S is a luxury, high-end vehicle.

Tesla Model S: The cheapest car insurance

Bankrate collected quotes from a few of the best insurance companies for a better idea of how Tesla Model S car insurance rates can vary from one carrier to another. These averages are only meant to be a guide, but actual rates may vary for every Tesla Model S driver.

Model-specific average annual premium

These insurance companies offer different rates for the same coverage level, based upon the Tesla Model S.

Features of the Tesla Model S that have an impact on insurance costs

While some of Tesla’s unique features can help lower the cost of car insurance premiums, others may be more expensive to insure. These features could have the greatest impact on pricing:

  • Tesla’s own insurance: Tesla sells its own insurance to keep rates competitive for drivers. Due to increased competition in the field, insurance costs might be lower.
  • Repair costs are higher for Model S aluminum frames. A repair shop might have to replace a whole section of the body instead of fixing a single panel. This is a great safety measure, but it can lead to higher premiums.
  • Auto-pilot mode discount: This mode is similar to driver assistance technology and can help you avoid an accident. These savings and discounts may differ from one provider to another.
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Additional car insurance coverage available for Tesla Model S

Tesla owners will not opt for the minimal amount of vehicle insurance required in their state. Most states require that drivers have liability insurance. This is the main reason. Liability insurance does not cover injuries or damages you cause to others. Liability coverage doesn’t cover damages to your car or repairs if you are responsible for an accident. Tesla Model S owners prefer full coverage due to the high cost of repairing or replacing their car. Other than full coverage, there are other options for Tesla car insurance worth considering:

Gap coverage

If you are financing a new Tesla, gap insurance coverage may be useful; it will pay the difference between the amount outstanding on the loan and the actual cash value your insurance payout amounts to, if the car is declared a total loss. The amount owed on brand-new cars can quickly exceed their actual cash value if they depreciate rapidly after being driven off the lot.

Guaranteed replacement cost

Many insurance companies will pay the actual cash value of a vehicle. Your insurance company will adjust your vehicle’s payout amount based on the selling price of similar models. The actual cash value takes into account depreciation of your vehicle, and subtracts age, mileage, and condition from the final payout amount. It might not be sufficient to replace your Tesla with another model year. However, guaranteed replacement cost will provide a payout that does NOT factor in depreciation. This ensures you can replace your Tesla with a similar model year.

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Rental reimbursement

Standard policies may provide funds for rental cars in the event that your vehicle is damaged or inoperable. You may have to upgrade your rental reimbursement due to the complexity involved in repairing and rebuilding Teslas. You could be charged for additional days if you’re not using your vehicle.

Coverage of all glass

There are many areas on the Tesla Model S that feature glass. There are many spots that feature glass, including the large windows and the glass sunroof. Full glass coverage covers the cost of replacing or repairing damaged glass on your vehicle. This is deductible-free. This add-on covers repair or replacement in most cases. Usually, the repair company sends a mobile technician who will do the work at your place.