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How Much is Tesla Insurance? Cost & Cheap Quotes (2021)

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Homepage > Car Insurance Quotes > Average Car Insurance Cost > How Much is Tesla Insurance: Cost & Cheap Quotes (2021)


Tesla Insurance Cost: Insuring Tomorrow's Car

Tesla has had one of the wildest rides in automotive history. Although they're considered to be the global leader in electric vehicles today, the company was on the verge of bankruptcy just a few short years ago in 2017. This was due to the slow rollout of the Tesla Model 3. However, Elon Musk continued to support the company with his own personal investments, and the rest is history.

Prior to the Tesla Model 3, electric vehicles were considered too expensive to be practical for the average everyday driver. However, Musk and his team specifically designed the Model 3 to make electric cars more affordable.

In fact, the average cost of Tesla Model 3 costs just $37,450 - a number that's similar to many other luxury and sports cars in America. While it's not quite as cheap as a base-model Kia, it's still a lot more attainable.

But how much is Tesla insurance? Is insuring a Tesla different from insuring a standard sports/luxury sedan? What are some of the ways that drivers can reduce their car insurance costs on their new Tesla Model 3?

Below, we're going to answer some of the most common questions about how to insure a Tesla and how insurance is different from standard fossil-fuel-powered vehicles.

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How Does Tesla Auto Insurance Work?

One of the coolest things about Tesla is that they actually offer their own Tesla Insurance coverage. They claim to offer insurance rates that are up to 30% cheaper than traditional auto insurance rates from big insurers like State Farm, Geico, or Progressive.

The coverage is guaranteed and underwritten by a third-party insurance company, AXA Insurance, which is responsible for handling payouts and accident investigations. Tesla handles all of the customer service sides of the insurance.

Another feature that makes Tesla Auto Insurance so attractive is its Autonomous Vehicle Protection Package. This package is not offered by any other insurance provider and includes coverage for:

  • Wall charger coverage.

  • Electronic key replacement.

  • Cyber identity fraud.

These coverages are specific to Tesla and certain electric vehicles and are often some of the most frustrating items to take care of since typical auto insurance companies don't have policies set for these yet.

However, the one caveat to Tesla Auto Insurance is that it's currently only available in the state of California. It's in its start-up phase, and they're still working out some of the details and negotiations required to do business in other states.

This means that until Tesla Insurance comes to your state (which should be by 2025 or 2030, if everything goes according to plan), you'll have to suffice with standard insurance companies.

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How To Purchase Tesla Car Insurance

If you live in California, own a Tesla and would like to purchase Tesla Car Insurance, simply request a quote from Tesla's website directly and apply for its car insurance coverage through. The cost of your premium will differ, as with every car insurance company, depending on factors such as:

  • The driver's age and gender.

  • Your driving record (previous accidents and traffic violations).

  • The year, make, and model of your Tesla.

  • How many miles you plan on driving per year.

  • Your credit score and payment history.

 

What Is Tesla Annual Insurance?

If you live in California and you're eligible for Tesla drivers insurance, then their plans are typically 12-month annual policies. This means that your rate will stay the same for a 12-month period.

If you continue to maintain a good driving record and improve your credit score, then you might get cheaper rates for your next coverage period. Conversely, if you get into an accident, miss payments, or receive tickets for traffic violations, then your insurance policy could increase.


How Much Does Tesla Insurance Cost

Although Tesla claims to offer cheaper car insurance quotes than other competing providers, they don't release exact numbers for their current rates. Since its insurance service is relatively new, there also isn't a lot of historical data to go off of.

So, that being said, we've found some data on the average Tesla policies in the state of California, the only state where it is currently available at. According to our research, here is the average cost for a full-coverage Tesla car insurance policy, depending on the model you drive, with Tesla's insurance:

ModelCost Per MonthCost Per Year
3$153$1,832
S$246$2,946
X$207$2,481
Y$230$2,756
Roadster$150$1,800


Tesla Model 3 Insurance Cost

If you've been wondering how much is insurance on a Tesla Model 3, then we can to tell you that the average Tesla model 3 insurance cost is $1,832 per year or $153 per month with Tesla as the insurance provider. 

According to the Insurance Information Institute, the average automotive policyholder pays just over $1,200 per year to insure their vehicle, while our research found the average to stand on $1,700 a year. This means that the cost of insuring a Tesla Model 3 (their cheapest model) is almost $700 (or $200 based on our research) more per year than the national average. However, this is common for most individuals driving high-end sports or luxury vehicles that cost more money to repair after an accident.

Best Insurance for Tesla Model 3

The best insurance for Tesla Model 3 may be Tesla's own insurance. However, as you can see below, USAA Tesla model 3 insurance quote is the cheapest Tesla insurance among leading companies. Please find some Tesla Model 3 insurance quotes from some of the best car insurance companies:

CompanyAverage Cost Per YearAverage Cost Per Month
USAA
$1,094
$92
Nationwide$1,313$110
Erie$1,446$121
State Farm$1,697$142
Tesla$1,832$153
GEICO$2,492$208
Allstate$3,288$275


Tesla Model Y Insurance Cost

The average cost of car insurance for Tesla model Y is $2,756 a year, or $230 per month with Tesla as the insurance provider, which makes insurance on Tesla model Y approximately double the average car insurance cost.

Best Car Insurance for Tesla Model Y

As model Y insurance rates may differ from company to company and driver to driver, it is always wise to request a Tesla model Y insurance quote from various providers. 

CompanyAverage Cost Per YearAverage Cost Per Month
Progressive$1,517$126
USAA
$1,899
$158
State Farm$1,938
$162
GEICO$2,322$194
Tesla$2,756$230
  • Progressive Tesla model Y insurance cost is the cheapest we've found with $1,517 per year or $126 per month rates on average
  • USAA Tesla model Y insurance rate is another cheap option, with $1,899 a year or $158 a month on average
  • State Farm Tesla model Y insurance cost is $1,938 per year or $162 per month on average
  • GEICO Tesla model Y insurance cost is $2,322 per year or $194 per month on average
  • Tesla car insurance is quite significantly more expensive for model Y than the other companies above as you can see, averaging $2,756 per year or $230 per month


Tesla Model X Insurance Cost

Tesla model X insurance cost is $2,164 a year or $180 a month in general with all companies, or $2,481 per year or $207 per month with Tesla's insurance.


Tesla Model S Insurance Cost

The average cost of car insurance for Tesla model S is $2,280 per year or $190 per month in general, or $2,946 per year and $246 per month with Tesla's auto insurance.


Tesla Roadster Insurance Cost

The average Tesla Roadster car insurance cost is $1,800 a year or $150 a month.

How To Reduce Insurance Cost For Tesla Model 3

If you're worried about not being able to afford your Tesla insurance quote, then there are a few strategies that you can employ to reduce your insurance rates. While some of these may take a year or two to go into full-effect, your insurer may also offer immediate discounts. Here are some of the most common ways to reduce your costs to insure a Tesla.

Purchase A Used Tesla

Brand-new Teslas are always going to be more expensive than if you were to purchase a slightly-used model. The more expensive the vehicle you're insuring is, then the higher your premiums will be.

Drive Less

Most insurance providers charge drivers more if they drive more than 12,000 miles per year. So, if you drive less than this, mention it to your agent. You may get a considerable discount on your policy.

Improve Your Credit Score

The better your credit score and credit history are, the better rate you'll get on your insurance. Individuals with higher scores tend to make their payments on time and are less likely to be involved in an accident.

Take Advantage Of Discounts

Most major insurance providers offer discounts such as:

  • Safe driver discount.

  • Good student/grades discount.

  • Defensive driving discount.

  • ...and others!

If the discount hasn't been applied to your account yet, then ask your agent what you can do to apply for these discounts!

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How Much Does Tesla Car Insurance Cost In Different States?

Tesla car insurance rates may differ greatly, depending on what state you're in. For example, the cheapest state to insure your Tesla in is Ohio, where the open country makes the likelihood of accidents a lot lower. The average insurance policy for a Tesla Model 3 in Ohio is just $1,200.

However, if you live in a state where accidents are more common, and minimum insurance coverage rates are higher, then you could pay upwards of $3,000! The most expensive states to insure your Tesla in are California (around $2,500) and Florida ($2,800).

 

sources:

  1. https://www.tesla.com/support/insurance 

  2. https://www.iii.org/fact-statistic/facts-statistics-auto-insurance 

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