According to our research, it costs $3,203 per year to insure a Tesla on average. That cost varies based on the Tesla model you own – whether it’s Model 3, S, or X. It also depends on the trim, where you live, your driving record, and your policy. Owning a Tesla is significantly more expensive than its original price tag after you factor in the steep insurance rates from high repair costs. In this article, we’ll delve into:
- Cost of Tesla insurance
- How your Tesla model impacts insurance rates
- Best companies for insuring a Tesla
The cost of Tesla insurance
So, how much is Tesla car insurance? This is what we found:
|Model||Monthly Tesla Insurance Cost|
|These rates are for a 30-year-old male with a clean driving record, 50/100/50 coverage, and $500 deductibles for comprehensive and collision coverage in Los Angeles and Chicago. Your rates will vary based on several factors, including car model, where you live, your driving record, and more.|
Find out how much it will cost to insure your Tesla
We found that the Model 3 is the cheapest to insure and Model S is the most expensive to insure.
Tesla Model 3 Insurance Cost
- Average monthly insurance rate: $185
- Sale price: Starting at $36,200
Like the price tag, the Model 3 also has the lowest monthly auto insurance rates compared to other models. By comparing insurance quotes for the Model 3 in California and Illinois, we found the average monthly insurance rate for a Tesla Model 3 to cost $185 per month.
Tesla Model S Insurance Cost
- Average monthly insurance rate: $317
- Sale price: Starting at $86,200
The Model S it the most expensive Tesla model to insure. Some insurance companies will not only look at the model of your Tesla, but also your car’s trim. For example, a Tesla Model S 75 costs $404 per month with one insurer, whereas a Tesla S P100D costs $563 per month to insure from the same company. Tesla Model S trim options include: 75D, 100D, and P100D.
Tesla Model X Insurance Cost
- Average monthly insurance rate: $299
- Sale price: Starting at $88,000
If your insurance company considers trims, that rate could be higher or lower. For example, a California resident could pay $407 per month to insure a Tesla Model X 75D, and pay $517 per month for for the same coverage for a Tesla Model X P100D. A model P100D costs more than a 75D because it accelerates faster and costs more to replace, which are both factors insurance companies consider while pricing your policy. Model X trim options include: 75D, 100D, and P100D.
Best car insurance companies for Tesla
After comparing rates from three major auto insurance companies, Progressive was the cheapest insurance company for insuring a Tesla. However, insurance companies consider several factors like your car model and location, so rates vary.
Tesla cars are expensive to purchase and maintain, leading to high insurance premiums. Some insurance companies classify Teslas as luxury cars and give you the high rates to match. In 2017, AAA raised insurance rates on some Tesla models because of higher claim frequencies and more expensive collision losses. Whereas some insurers offer discounts for Tesla features like autosteer functionality and anti-theft technology.
Tesla has also experimented with their own proprietary insurance programs. This started with a partnership with Liberty Mutual, and a program called InsureMyTesla. But this was quickly shuttered, though Tesla still offers in-house insurance in a few states. At present, it doesn't seem to be a better option than purchasing private insurance.
Why is Tesla insurance expensive?
Our research found that an average full-coverage policy costs $1,255 per year, but the yearly average rate to insure a Tesla is $3,203. Why is Tesla insurance so expensive?
Higher price tag
Electric cars are generally more expensive to purchase than gas cars, which makes insurance rates higher. On the flip side, some auto insurance companies offer discounts for eco-friendly cars, so be sure to shop around and compare insurance quotes from several different companies.
Their technology costs more to repair than gas vehicles if they’re damaged in an accident. You must get your Tesla repaired at a specific, approved body shop. That means rates are significantly higher because of the training and equipment required for these shops to be Tesla-approved.
Although Teslas are involved in fewer crashes, even minor damages will cost more because the parts and technology costs more to repair. For example, most cars have steel frames, but Model S Teslas have aluminum frames, which are more expensive to repair.
Tesla insurance discounts
There are also Tesla safety features that could lead to insurance discounts depending on your auto insurance company. Anti-theft devices allow you to track your car with your phone, which could benefit your rates. You can also upgrade your Tesla with an autopilot function, which is meant to reduce crashes.
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