Gianetta Palmer is a writer, copywriter, and essayist. Her work has appeared in EverydayHealth.com, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florid...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jun 17, 2021

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How much does it cost to insure a Tesla?

Autonomous vehicles, such as the Model X or S, can come at a cost, especially when it comes to car insurance. From supra fast 0 to 60 in less than two seconds, a peak horsepower of 1,020 can make Tesla auto insurance rates higher than average. Telsa’s have a dual electric motor, it can be challenging to find a mechanic or repair shop after an auto accident. This, too, can increase rates for many drivers of Teslas. Insuring a Tesla doesn’t necessarily have to be an expensive proposition.

The average cost of Tesla car insurance comes in at $1,700 per year for the Model 3 and $2,500 per year for Model S and X. If you want to get the cheapest rates, AutoInsureSavings.org licensed insurance agents recommend checking out GEICO, American Family, State Farm, Nationwide, and Erie Insurance. Overall, we found State Farm and Nationwide offer the lowest average rates for all Tesla models.

Tesla company offers car insurance for owners of their automobiles at a reduced price than other car insurance companies. Many auto insurers haven’t come to terms with autonomous electric Teslas and similar vehicles. Hence, Tesla car insurance was born by CEO Elon Musk.

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Tesla Auto Insurance

Owners of Tesla Model 3, Model X, Model Y, and Model S are eligible for Tesla Auto Insurance. The company’s goal is to lower the cost of insurance and provide an excellent customer experience. Since Tesla Company understands the actual cost of repairs, Tesla’s CEO Elon Musk claims they can bring down insurance costs.

Tesla Insurance is currently available to all Model S, Model X, Model 3, Model Y, and Roadster owners in CaliforniaTexas, and Illinois, according to TheZebra. Insurance will expand to additional U.S. states in the future.

Tesla is in a unique position to write insurance policies for its vehicles. With an understanding of the vehicles’ advanced autonomous electric technology, Tesla can underwrite practices accordingly from their knowledge of advanced safety and driver-assist features such as AutoPilot.

Tesla Insurance coverage options

Tesla car insurance gives drivers reliable and “possible” cheaper options with unique features tailored to Teslas. Drivers can expect the basic coverage options available from other major insurance companies, including bodily injury liability and property damage liability, comprehensive and collision insurance, and uninsured motorist coverage. Additional add-ons such as roadside assistance are available from auto insurance companies.

Coverages offered by Tesla include:

  • Gap insurance
  • Collision deductible buyback
  • Total loss deductible

Tesla offers an Autonomous Vehicle Protection Package for its vehicle owners who opt for car insurance through Tesla. The Vehicle Protection Package includes liability coverage for autonomous vehicle owners, wall charger coverage, electronic key replacement, and identity fraud expenses.

Information on insurance pricing is challenging to get. We have quotes from an existing 36-year-old driver in our directory. AutoInsureSavings.org Tesla drivers claimed insurance discounts are available for policyholders opting to insure more than one vehicle. Tesla uses many of the same risk factors to rate drivers, as do other insurance carriers, including driving history, garaging address, age, type of vehicle, and credit history (depending on the state). All Tesla automobiles have built-in telematics and may be an option for owners to lower car insurance rates. It is clear if the company is using its telematics technology for insuring current policyholders.

Additional Coverage Options

According to their website, Tesla Insurance can only be purchased directly from the company. If you are considering buying or new or used Tesla, there are many insurance options to consider. With AutoInsureSavings.org, finding the best and cheapest car insurance is easy. Select your Model below to compare average rates by each insurance carrier.

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