How Much Does Tesla Insurance Cost?

Tesla insurance is expensive but there are new options. Shop around to find the best rates.

The Tesla electric car is not cheap. It costs $40,000 to purchase the base model. Tesla insurance is more expensive than similar coverage for popular vehicles, despite its high safety rating.

To give Tesla fans an idea of what to expect, NerdWallet checked rates for full-coverage auto insurance on the lowest-priced Tesla, the Model 3. Here are the results.

Tesla Model 3 insurance: Average cost

Our analysis shows that Tesla Model 3 insurance costs $2,215 annually, or $185 per month. That’s nearly 40% higher than the national average cost of car insurance.

Rates can vary greatly from one insurer to another. Among the five largest car insurance companies in the U.S., price differences for Tesla car insurance can be more than $1,000 a year.

Which company offers the lowest Tesla car insurance?

Progressive is the largest national insurer with the lowest rates for Tesla Model 3 owners. USAA offers lower rates but it wasn’t included in our analysis as it is only available to veterans, military personnel, and their families.

You can also check out smaller local providers to find the best Tesla auto insurance rates. They might be cheaper than the larger players in your area.

What is the cost of Tesla car insurance in my state?

Tesla Model 3 insurance costs don’t vary across the United States. The average annual rate for full coverage is very different from state to state.

  • Maine is home to the lowest cost of Tesla Model 3 insurance at $1,245 per year.
  • Louisiana is the state with the highest average cost of Tesla Model 3 insurance at $3,436

Although the cost of auto insurance will vary depending on where you live, it is likely that you will pay more than your neighbors who don’t own Teslas. The Tesla Model 3 is the most costly car to insure in all 25 states, except New York where it is second to the Toyota Highlander LE.

Shopping around for the best Tesla car insurance rates can help you save money. Below is the table that shows the average state rate. It could be $300-$2,000 lower than the state average.

USAA was not included in our analysis as it is only available to veterans, active military personnel, and their families. However, it’s worth looking if you are eligible. USAA had the lowest rates for Tesla auto insurance in 30 states.

Tesla insurance is so costly

Your car’s cost will determine how much insurance you need. If you’re in an accident and need repairs, your collision insurance is going to pay unless it was totally someone else’s fault. If your Tesla is stolen, your insurer will charge you more to replace it.

What is the price of a Tesla?

The Tesla is more expensive than many cars. They are priced similar to luxury cars and other electric cars. Take this example:

  • Tesla Model 3. Tesla Model 3. You can upgrade to the Long Range Model 3 at $49,000, or to the Performance Model 3 at just $57,000.
  • Tesla Model Y. The base trim of this car is $52,000.
  • Tesla Model S. Model S is more expensive than the Model S before any upgrades or add-ons.
  • Tesla Model X. The base price of this car is close to $90,000. Upgrades can cost tens or thousands.

Your Tesla costs can skyrocket if you upgrade beyond the base model. You can add self-driving capabilities to your Tesla for $10,000, and any other paint color will cost you an additional $1,000 to $2,000. You will pay more to insure your Tesla if you add more features to it.

Tesla repair costs

The base price of Teslas is influenced by the fact that they are made from expensive parts. A Model 3 battery can be replaced for thousands of dollars.

Due to the car’s aluminum body, Tesla repairs are more costly than traditional ones. An auto body shop will be able to repair any damaged parts of your 2012 sedan for a relatively low cost. Aluminum is not eligible for the same treatment.

Owners pay more for Tesla car insurance to cover the repair costs. Tesla Insurance, a new insurance option that the carmaker claims will reduce the cost of repairs, is being offered to ease the burden.

What is Tesla Insurance?

Tesla is now a licensed broker, providing insurance in California through State National Insurance to Tesla drivers. According to the company, drivers can enjoy savings of up to 20%-30% over insurance from other carriers.

Tesla insurance can be purchased for the following models: Model S, Model X and Model X; Model 3; Model Y and Roadster.

How Tesla Insurance works

Tesla claims it has a deep understanding of how drivers use their cars. It also takes into consideration all safety features and crash avoidance systems when pricing insurance. Tesla claims it does not currently use personal driving data from the vehicles to determine its pricing.

Tesla offers additional coverage beyond liability, collision, comprehensive and comprehensive insurance. It also covers wall chargers and electronic key replacement.

In its initial filings, Tesla Insurance also included collision and liability car insurance discounts for the use of autonomous driving features, ranging from 5% to 30% depending on the level of autonomy in use. Discounts are also available for families with multiple Teslas.

Tesla is currently expanding its insurance offerings in Texas, Illinois, and Washington. The ultimate goal is to sell policies all across the U.S.

Until then, keep rates down by comparing several car insurance quotes to make sure you’re getting the best deal.