fbpx
Phone: 1-(855) 233-7818

Best Tesla Car Insurance; How Much Does it Cost to Insure a Tesla by Model?

Are you currently insured?
Yes No

Electric cars are the future.

More people turn to EV’s since they are more practical to use.

And have become a cool piece to sit in your driveway.

Particularly the Tesla.

Tesla has an attractive lineup with powerful vehicles and is the leading luxury electric car manufacturer.

Since you are in the market for a new Tesla, let’s see how much it is going to cost to insure it.

ModelMSRPPremium*MPGe
3$35,000+$1,987148 city / 132 highway
S$74,990+$2,963121 city / 112 highway
X$79,990+$3,47391 city / 95 highway
Y$49,990+$1,965127 city / 114 highway

*Policy period is 1 year included with traditional discounts.

Average cost to insure a Tesla?

Tesla’s are higher than average to insure.

The best-selling Model 3 costs $2,100 per year, the Model S is about $3,000, the Model X’s average car insurance quote is $3,450, and the new Model Y is under $2,000 per year.

Due to their relative novelty and small numbers until recently, some insurance companies are hesitant to insure them.

Cost to insure Tesla Model Y, 3, S, and X. Illustrated above is the average cost to insure a Tesla by Model. The Model Y is the newest and cheapest to insure model. Their most popular Model 3 is approximately $2,100 to insure. While the Model S and X have a fairly high insurance premium at $3,000 and $3,450 respectfully. Depending on your insurance company the rates could be higher or lower.

You might have to do some more research and shop around to find insurance provider for your Tesla.

As they become more common with less expensive replacement parts premiums should decrease.

Why are Teslas expensive to insure?

There are several reasons why Teslas are more expensive to insure than average vehicles on the road.

The three main reasons are:

  • horsepower
  • cost of repairs
  • risk associated

Tesla’s have higher horsepower ratings than the vast majority of vehicles.

The P100D Model S enjoys a whopping 762 horsepower, with acceleration to put some supercars to shame.

Another factor is premiums and optional coverage is pricier from high cost of repairs.

Cost to insure Tesla model 3 from Progressive, AAA, Farmers, and Mercury. Illustrated above is a comparison of the Model 3 in California. The insurance company states premiums are 20% lower than big brands such as Progressive or Farmers. I’ve found Tesla’s coverage to be cheaper, but not 20% lower than big name insurers.

The vehicles boast many unique features:

  • Autopilot systems
  • Massive battery packs
  • Cameras and radars
  • Electric motors

Internally they are very different from standard combustion engine vehicles.

Not many mechanics know the ins and outs, parts are scarce, and any damage will be costlier to fix.

Average Car Insurance Rates

The figures below are averages.

Depending on your location and driving history your monthly premium could be different from estimates below.

Model 3

The Model 3 is Tesla’s best-seller, making up more than 70% of all the manufacturer’s sales.

In 2019 it became the world’s best selling plug-in electric car.

Overtaking the Nissan Leaf in less than three years of production.

CompanyRate
Progressive$1,955
AAA$1,971
Allstate$2,088
Farmers$2,149
Mercury$2,282

Its compact size, considerable production numbers, and an excellent highway safety rating make it the most economical Tesla vehicle to insure.

Depending on your driving record it has an average yearly premium of $1,987.

Model S

The Model S is Tesla’s full-size sedan and it’s the first four-door vehicle in production.

Tesla Model S owners can expect to pay an insurance quote of $2,963/year.

CompanyRate
State Farm$2,877
AAA$3,077
GEICO$3,132
Farmers$3,245
Mercury$3,511

This figure is significantly higher than the Model 3, but it is expected due to the car’s higher price.

Model X

The Tesla Model X is the full-size SUV, released after the Model S.

You can expect to pay a yearly premium of around $3,473.

CompanyAnnual Rate
Liberty Mutual$3,328
AAA$3,481
Allstate$3,645
Farmers$3,727
Mercury$3,832

This is a reasonable figure considering the starting price and horsepower rating of the luxury SUV.

Model Y

The Model Y is Tesla’s newest addition to its lineup.

It joins the Model X within Tesla’s lineup of electric SUV’s, but it’s much smaller as it is based on the Model 3.

CompanyAnnual Rate
Progressive$1,811
AAA$1,902
GEICO$1,936
Farmers$2,038
Travelers$2,143

I anticipate the Model Y to have premiums similar to the Model 3 due to similar characteristics and cost.

What is Tesla Auto Insurance?

Tesla Insurance is a new competitively priced insurance policy to give owners up to 20% lower premiums.

Tesla offers coverage with comprehensive and collision to owners in California.

This option is expected to expand to additional U.S. states.

If you are in the market for a Tesla while residing in California, this an excellent option.

It would certainly be on my bucket list of quotes if I was in the same scenario.

What is the Best Tesla Vehicle Insurance Coverage?

For California drivers, coverage offered by Tesla is probably your best option.

Tesla claims that it can offer lower costs than equivalent policies from big insurers due to knowledge about their own cars and repair processes.

Another factor which keeps Tesla coverage low is reducing commissions.

These cost savings are carried to the customer.

Rest of the U.S.

Unfortunately, Tesla coverage is only available in California.

For drivers outside of California, the cheapest rate for Tesla’s are Progressive and AAA, though it will depend on the model.

For the Model 3, Progressive generally offers the most affordable coverage, but for the Model S and X you can expect lower premiums with Farmers or GEICO.

Below is the average cost for coverage by state with the cheapest insurer.

I picked states where Tesla’s are more popular.

StateAverage RateBest InsurerStateAverage RateBest Insurer
Arizona$2,004MercuryMaryland$2,577Esurance
California$2,122ProgressiveMichigan$3,843Pioneer
Colorado$2,563American NationalNew Mexico$1,932Ameriprise
Connecticut$2,675FarmersNew York$2,785Erie
Florida$3,022AllstateOhio$1,832Erie
Georgia$2,355NationwideOregon$1,743Amica
Hawaii$1,732AllstateTexas$1,835Texas Farm Bureau
Illinois$1,932FarmersVirginia$1,944Nationwide
Indiana$1,892NationwideWashington$1,832Oregon Mutual

Most drivers take advantage of bundling & driver discounts with large insurers such as Progressive or Farmers.

Are discounts available?

There are discounts available that are exclusive for Tesla’s, the most noteworthy one being the autopilot discount for having an autopilot feature.

Tesla claims Autopilot is less likely to cause an accident than a human driver.

With Autopilot you can get additional savings from 5 to 10%.

Unfortunately, this discount only applies to coverage options bought from Tesla.

Standard discounts are available from top insurers such as:

  • Multiple policies
  • Good driver
  • Anti-theft
  • Anti-lock brakes
  • Loyalty
  • Air bag
  • Group rates
  • Safe drivers
  • Loyalty discount

Are Tesla’s likely to be stolen?

Teslas are much less likely to be stolen than most vehicles.

The vehicle’s have Sentry Mode which leaves the vehicle in “monitoring” state.

All cameras and sensors remain active and can alert the owner if someone is too close to the vehicle.

Furthermore, a thief needs to be able to hack into it to get the car started.

SecurityFeature
GPS trackingOwners can get real time data of car location.
Sentry ModePuts vehicle in monitoring state with cameras and sensors. It will display "recording in progress".
Pin To DriveYou have to enter a pin number to drive.

Even if the thief can drive away with it, all Teslas have GPS tracking technology running at all times, making it easy to track.

It is a sophisticated theft system with tech features.  

They will also have to charge the car at some point using a Tesla charger or a public Supercharger.

Are Teslas safe?

The Tesla Model 3 was rated 5/5 by the National Highway Traffic Safety Administration, achieving a 5-star rating on every category.

This makes the automobiles one of the safest to drive.

Below are standard safety features:

Safety Features 
Cross-Traffic AlertTraction Control
Daytime Running LightsBlind Spot Monitor
Passenger Air BagAuto-Leveling Headlights
Front Head Air BagLane Departure Warning
4-Wheel ABSLane Keeping Assist
Brake AssistElectronic Stability Control

The tests also showed it has the lowest probability of injury out of all the cars tested. (source)

The NHTSA had also previously tested the Model S and the Model X.

They attained very high safety ratings, being the second and third safest vehicles tested.

Overall, safety ratings show that Tesla vehicles are the safest ever tested, mostly due to a 50/50 weight distribution, low center of gravity, strong passenger compartments, advanced crumple zones, and fortified long range battery pack.

Final Thoughts

If you’re looking to buy a Tesla and reside in California, then definitely look into their insurance program.

I know I would to find lower prices. 

It would be best to compare additional coverage needs and price with big brands.

Would you see lower rates with Tesla’s auto insurance?

Yes, it appears so.

You would get a better rate especially if you have good driving habits. 

Since it has high repair and maintenance costs, keeping the overall premium low could prove difficult.

Especially with a fairly high vehicle cost with autonomous driving models. 

How they handle claims process and repairs after driver’s file remains to be seen.

Sources

https://cleantechnica.com/tesla-passes-1-million-ev-milestone-and-model-3-becomes-all-time-best-seller/

https://www.tesla.com/insurance

https://www.valuepenguin.com/tesla-car-insurance

https://www.bankrate.com/insurance/companies/tesla/

Quadrant Information Services

Greg Fowler

Greg Fowler

Managing Member of AutoInsureSavings LLC, Greg has been in the insurance industry for 12 years and enjoys rebuilding vehicles. His goal is to help drivers save on anything related to automobiles. Travel and enjoying the outdoors are some of his hobbies. The best way to reach him is at his Twitter or Facebook Profile.

Comments are closed.