Tesla insurance is expensive. How much you pay for Tesla insurance, though, depends on which Tesla model you drive.
The Tesla Model 3 costs an average of $3,417 per year to insure with a full-coverage policy, according to our research. The Tesla Model X costs $4,559 per year to insure, on average. As for the Tesla Model S and Model Y, they fall between these two amounts.
Where you buy your policy can have a big impact on the cost of Tesla insurance, too. Based on our data, for instance, Progressive is the cheapest car insurance company for Tesla Model 3 drivers, at an average of $2,309 per year. That’s $1,108 per year less than the average highlighted above.
The trim level of your Tesla, where you live, your driving record and your policy also play important roles in what you pay for Tesla car insurance.
In this article, you’ll learn about:
- Cost of Tesla insurance
- Best car insurance companies for Tesla owners
- Why Tesla insurance is expensive
- How to get cheap Tesla insurance
How much does Tesla insurance cost?
If you drive a Tesla Model S and only want the minimum amount of car insurance your state requires, you’ll pay an average of $789 per year, or $66 per month, for it. That’s the cheapest average cost of Tesla insurance we found during our survey of providers who cover these electric vehicles.
The Model 3 is the cheapest Tesla to insure if you want full-coverage car insurance, which typically includes liability, collision and comprehensive coverages. Based on our data, full-coverage policies for Tesla Model 3 vehicles cost $3,417 per year, or $285 per month, on average.
Keep reading for more on how much these and other Tesla models cost to insure.
How much does Tesla Model 3 insurance cost?
Tesla Model 3 insurance costs $809 per year, on average, if you buy a minimum-coverage policy. That’s $67 per month.
Full-coverage car insurance for a Tesla Model 3 costs an average of $3,417 per year, or $285 per month.
How much does Tesla Model S insurance cost?
Car insurance for a Tesla Model S costs $789 per year, or $66 per month, for a minimum-coverage policy, according to our research.
For a full-coverage policy, Tesla Model S insurance costs an average of $3,539 per year, or $295 per month.
How much does Tesla Model X insurance cost?
Tesla Model X insurance costs an average of $810 per year for a state-minimum policy. This equals $68 per month.
Full-coverage auto insurance for a Tesla Model X costs $4,559 per year, on average — or $380 per month.
How much does Tesla Model Y insurance cost?
Minimum-coverage auto insurance for a Tesla Model Y costs $912 per year, or $76 per month, our data shows.
For a full-coverage policy, Tesla Model Y insurance costs an average of $4,229 per year, or $352 per month.
Cheapest and most expensive Tesla insurance
Based on our research:
- Tesla Model S is the cheapest for minimum-coverage car insurance.
- Tesla Model Y is the most expensive for minimum coverage.
- Tesla Model 3 is the cheapest for full-coverage car insurance.
- Tesla Model X is the most expensive for full coverage.
Find out how much it will cost to insure your Tesla
What are the best car insurance companies for Tesla drivers?
Progressive is the best car insurance company for Tesla drivers, according to our research. Allstate, GEICO and State Farm are also good companies for cheap Tesla insurance, depending on which Tesla model you own.
Overall, though, Progressive offers the best and cheapest car insurance rates for all Tesla models. The average annual rate Progressive offered our sample Tesla Model 3 driver was $2,309 for full-coverage car insurance. Progressive offered our sample Model S driver an average annual rate of $1,957 for the same amount of coverage, and it offered our Model X driver an average annual rate of $1,847. The average rate Progressive offered our Model Y driver was $2,175 per year for a full-coverage policy.
We found that Progressive offers the cheapest Tesla insurance rates for minimum-coverage policies, too, though the average rates GEICO offers Tesla drivers for minimum-coverage car insurance are nearly as cheap.
Progressive isn’t always the cheapest car insurance company for Tesla drivers who have speeding tickets or accidents on their records, however. If you drive a Tesla Model 3 and have a speeding ticket on your record, for example, Farmers may be your cheapest option for a full-coverage policy, based on our data. And State Farm might be your cheapest option if you have an at-fault accident on your record.
All of which underscores the importance of comparing quotes from several companies while shopping for car insurance — especially if you want cheap coverage as a Tesla owner.
Tesla insurance
Something else to keep in mind as you shop for a policy is that Tesla now offers car insurance to owners of its vehicles.
Only Californians can buy Tesla’s own insurance offering at this point, but the company says it will expand to additional states in the future.
It might be worth considering if you are a California Tesla driver, as the company boasts that its rates are up to 30% cheaper than those of the competition.
Why is Tesla insurance expensive?
Tesla insurance is expensive because Tesla vehicles are expensive to buy and repair.
Higher price tag
Electric cars like Teslas usually are more expensive to buy than comparable gas-driven cars, which makes them more expensive to insure, too.
Costly technology and repairs
The technology inside a Tesla costs more to repair or replace than the technology inside a gas-powered vehicle, and that leads to higher insurance rates.
How can I get cheap Tesla insurance?
The best ways to get cheap Tesla insurance are to compare quotes from multiple companies when shopping for a policy and to see if you’re eligible for any discounts.
Regarding that second option, most auto insurance companies offer discounts to people who own and drive electric or otherwise eco-friendly cars. If you qualify, it could lower your policy premium significantly.
Some other common discounts that may help lower the cost of Tesla insurance are safety feature discounts and bundling discounts.
Methodology
The sample quotes used for this article were gathered from California, Colorado and New York for each of the four Tesla models.
The sample driver used for these quotes was a 30-year-old single male who has a clean record and drives an average of 13,500 miles a year.
Also, the average rates highlighted here are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
References:
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