How Much Does It Cost To Insure a Tesla?

The average Tesla car insurance monthly premium ranges between $185 to $319, depending on the make and model.^[1] However, you may be able to find better deals to insure these electric vehicles by shopping around to determine the best rates, including options available from Tesla itself.

Keep reading to learn more about what impacts Tesla car insurance costs and what options exist to get the best monthly premium.

Is Tesla Auto Insurance Expensive?

Depending on the make and model of the car, average Tesla car insurance rates can range between 69% and 117% higher than those of standard gas-powered vehicles.^[2] While Teslas can offer multiple benefits to their drivers, including a reduced carbon footprint and advanced driving technology, various factors generally result in a higher-than-average car insurance bill in return.

Why Do Teslas Cost So Much To Insure?

Teslas are often expensive to insure because they have high purchase prices, with some 2024 Teslas costing over $100,000 before taxes, depending on which model you choose.^[3] Tesla cars also come equipped with technologically advanced safety features but not all technicians are qualified to troubleshoot and repair Tesla parts and safety systems, like collision warnings and blind-spot detectors. Those who are may command higher prices, resulting in higher insurance costs.

Teslas are also expensive for part replacement, particularly the batteries. On some Tesla models, replacing the battery can easily set you back between $13,000 to $20,000.^[4] After an accident, some insurers will even choose to declare the vehicle a total loss because it already costs so much to either repair or replace the battery. To help account for this possibility, insurers raise premiums for Teslas.^[5]

In addition, Tesla drivers also have one of the highest accident rates compared to drivers of other vehicles. Naturally, insurers increase premiums for Tesla drivers to help offset this higher risk.^[6]

What Is the Average Cost for Tesla Car Insurance in the US

The average Tesla car insurance monthly premium ranges between $185 and $319, depending on the make and model.^[1] Models with a higher MSRP will typically cost more to insure because they cost more to purchase. You may even see a difference within the same model based on which trim you choose, which can add to the overall cost and may increase your insurance premium. Other factors that can affect the cost of auto insurance include age, accident and claims history and location, among other factors.

Tesla Car Insurance Cost by Make and Model

Teslas are expensive vehicles, but some models may be more expensive to insure than others. Here’s a quick breakdown of average costs for different Tesla models:^[1]

Which Companies Provide Insurance for Teslas?

Most national auto insurance companies and some smaller or regional carriers will insure Tesla vehicles, including:

• State Farm
• Farmers
• Nationwide
• Travelers
• Allstate
• GEICO
• USAA
• American Family

Does Tesla Have Car Insurance for Their Vehicles?

Tesla offers car insurance directly through the company, using telematics technology to calculate premiums based on a safety score determined by how safely you drive. The safety score, ranging from zero to 100, is based on real-time driving data from Tesla vehicles over 30 days.^[7] Higher scores result in lower premiums, while lower scores increase costs. Tesla may also offer the option to bundle non-Tesla vehicles under their insurance, potentially offering better rates based on the safety score and other factors.

Keep in mind that some Tesla Insurance policyholders have experienced prolonged delays in receiving insurance payouts, with one driver having reported waiting over seven months to receive compensation for medical expenses due to an Autopilot-involved accident.^[8] As with any car insurance option, ensure you research your policy and any customer reviews before signing on.

How Much Is Tesla Insurance?

When it launched in 2019, Tesla noted that its insurance offerings could save drivers between 20% and 30% compared to equivalent coverage from third-party insurance companies.^[9] Based on this, drivers can expect to pay around $130 to $223 per month for coverage directly through Tesla.^[9][1]

Keep in mind that your premiums may change regularly if your score fluctuates due to driving in the previous month, changing your coverage limits or adding new vehicles to your policy. However, you have the freedom to cancel your insurance at any time without being locked into a six-month or annual term.

Where Is Tesla Insurance Available?

Tesla Insurance is available in the following states:^[10]

• Arizona
• California
• Colorado
• Illinois
• Maryland
• Minnesota
• Nevada
• Ohio
• Oregon
• Texas
• Utah
• Virginia

Which Car Insurance Companies Provide the Cheapest Coverage for a Tesla?

Here’s a breakdown of the cheapest car insurance companies for Teslas and their median monthly rate based on the car model:^[1]

Note that USAA had the cheapest median monthly rate for Tesla Models 3 ($138) and Y ($133), but it is only available to active military members, veterans and their families, so it may not be an option for you.^[1]

What Type of Car Insurance Policies Are Best for a Tesla?

You’ll need to fulfill your state’s minimum coverage requirements, generally including liability insurance. While some states require uninsured/underinsured motorist coverage, personal injury protection (PIP) or Medpay, they aren’t a requirement in every state. However, the insurance coverage options for these types of car insurance may still be worth considering, even if they aren’t necessary where you live.

Comprehensive coverage and collision insurance are required if you’re financing or leasing your Tesla. It’s optional after you pay off your car but it may be worth maintaining afterward, given Tesla’s probability of an accident and the potential chance of perils like vandalism or theft. Other policies that may be beneficial include:

• Roadside assistance
• Gap insurance
• Accident forgiveness

How To Get Tesla Car Insurance

If you’re a Tesla owner, consider whether you’d like Tesla Insurance, which you can purchase directly through the Tesla mobile app. However, if you’d prefer a third-party insurer, you should shop around to gather quotes from three to five different insurance companies to best understand your options. Keep in mind that you’ll need to provide information such as your car model, your location, personal information and other factors to each individual insurance company one at a time.

Figuring out your options can become repetitive and tiresome, but you can use a potentially faster solution with an insurance marketplace like SmartFinancial. After answering a few questions, we can connect you with an insurance agent to help you get the best car insurance that meets your needs. Click here to get a cost-free quote today.