Car insurance for Teslas

The electric vehicle (EV) market surged tremendously in 2021. During this time, EVs reached record-high sales, as reported by the International Energy Agency. Teslas continue to make up a large proportion of EV sales. In fact, the Tesla Model 3 was the best-selling EV in 2018 and 2019 — the most recent years with plug-in EV sales data available from the Alternative Fuels Data Center. Although Teslas are popular due to the gas and maintenance expenses they save drivers, Tesla owners typically pay above-average premiums for auto insurance. This may be due to the higher price of parts and repairs.

How much does it cost to insure a Tesla?

The average cost of full coverage car insurance in the U.S. is $2,014 per year for a gas-powered vehicle, according to Bankrate’s 2023 study of quoted annual premiums from Quadrant Information Services. Our rate analysis shows that average Tesla car insurance costs are higher, with average full coverage premiums ranging from 69 percent to 117 percent higher than the national average, depending on the model. Among the many factors that impact car insurance rates, the make and model of the vehicle you drive affect your premium because different models have different crash statistics, repair costs and safety features. 

• Crash rate stats per make – Teslas have much lower crash rates than other vehicles. As of the fourth quarter of 2022, Tesla reported only one accident for every 4.85 million miles driven in which drivers were using Tesla’s Autopilot technology and one for every 1.4 million miles driven for drivers who were not using Autopilot. In contrast, the National Highway Traffic Safety Administration (NHTSA) reports the U.S. average is one accident per 652,000 miles. These low crash rates may help bring down car insurance rates for Teslas. 
• Price of parts – Teslas come with high-tech parts that can be costly to repair after an accident, which may contribute to the make's high average insurance costs. Additionally, Tesla’s parts are unique to the brand and may require more time to source, further contributing to higher costs.
• Safety features – Teslas come equipped with top-of-the-line safety features, including automatic emergency braking, forward collision warning, blind spot collision warning and lane departure avoidance. These systems may bring down the cost of insurance as they are designed to prevent accidents and might earn you a safety feature discount from some carriers. On the other hand, complex electrical systems can be difficult and costly to repair, which may drive up insurance costs.

Car insurance for a Tesla by model

Teslas are expensive luxury vehicles with proprietary parts that correspond to high average insurance costs. However, some models may be less costly to insure than others. The following average rates may be useful for comparison, but keep in mind that individual factors specific to you and your vehicle influence the price you pay for insurance, so how much Tesla insurance costs for you will likely vary from what is listed below.

Car insurance for Tesla Model 3

Tesla Model 3 drivers pay an average of $563 more than the national average for full coverage insurance. However, the Model 3 is the cheapest Tesla model, and has the cheapest average insurance rates of any Tesla model on our list.

Car insurance for Tesla Model Y

The Tesla Model Y is the next tier up in the Tesla lineup, with a higher manufacturer's suggested retail price (MSRP) and larger cabin space. In addition, the Model Y has flat-folding seats and the option to add a third seating row. These may be attractive features but also come at a higher premium to repair.

Car insurance for Tesla Model X

The Tesla Model X has the most expensive base price of any Tesla Model, as well as the highest average cost of full coverage auto insurance for Tesla models on our list. This is likely largely due to the model’s larger horsepower engine and faster acceleration (3.8 seconds compared to the Model 3’s 5.8 seconds). The Model X also has a larger cabin size and luxury features like its falcon wing doors.

Car insurance for Tesla Model S

The Model S is another luxurious sedan in Tesla’s lineup. Compared to the Model 3, the Model S is slightly larger with an extra five cubic feet of cargo space. The Model S also has a zippier engine, capable of going zero to 60 mph in 3.1 seconds, and has an increased range of 405 miles. The Model S is full of high-end features, like a yoke steering wheel and HEPA air filtration system. All these features may contribute to making this model one of the more expensive Teslas in terms of sticker price and average cost of insurance.

Cheapest car insurance companies for Teslas

Teslas cost more on average to insure, but comparing quotes from different providers may help you find a more affordable rate. To help simplify your car insurance search, Bankrate’s team analyzed rates across the largest providers by market share to identify the cheapest car insurance carriers for Tesla owners. We then narrowed our focus to present only the best car insurance companies among the most affordable carriers on the market, based on factors such as customer satisfaction, financial strength and national availability, which are further assessed in our provider reviews. Nationwide, USAA, Amica, Auto-Owners and Erie offer some of the cheapest Tesla car insurance rates based on our research. Keep in mind that your premiums will differ based on your individual characteristics.

Average annual premium for full coverage by model

*Annual premiums for a 40-year-old driver with a clean driving record

Tesla features that impact insurance costs

Some car insurance companies may offer discounted rates for certain Tesla safety features. However, many of Tesla’s high-tech features may increase insurance rates since they’re costly to repair. The following features may have an impact on your Tesla insurance rates.

• Keycard access: You can unlock your car with a card or via your Tesla app. Although this technology is convenient, fixing it may be pricey and could increase your car insurance rates.
• Sentry Mode: This feature activates cameras that start recording if someone stands next to your vehicle for too long. Sentry Mode’s cameras may help deter thieves, lowering your insurance costs. 
• Bioweapon Defense Mode: A HEPA filtration system filters toxins out of the car, which could help keep you safe during wildfires or other unsafe air conditions. However, this technology may be expensive to repair and could drive up Tesla insurance rates.
• Automatic emergency braking: This feature can detect any objects in front of the vehicle and brake to avoid an accident. By helping to mitigate accidents, this feature may lower car insurance rates.
• Lane departure avoidance: This feature applies corrective steering if the vehicle is veering outside the lane. This technology may help mitigate accidents and could lead to lower car insurance premiums.
• Speed assist: This feature can automatically detect the speed limit of the road your car is on and provide visual and audible warnings when you exceed the limit. The driver can also manually adjust how and when they are warned, such as setting up an alert for speeds above or within a set range. By helping monitor safe driving speeds, this feature may lead to reduced insurance costs.
• Cabin camera: As a means of helping drivers stay alert while in Autopilot mode, this camera — located above the rearview mirror if equipped — can determine driver inattentiveness and sound an audible alert to remind you to keep your eyes on the road.

What is Tesla Insurance?

Tesla now offers its own Tesla Insurance for drivers who want to purchase their car insurance through its company instead of a third-party insurance carrier. Unlike a traditional car insurance policy, Tesla Insurance does not look at individual factors like credit, age, gender and marital status, and also doesn’t consider previous accidents or violations. Instead, the premium is based on coverage selections and personal details like your home address, annual mileage and your Tesla’s Safety Score grade.

The Safety Score is based on real-time driving habits and behaviors, including five Safety Factors measured by the Tesla vehicle while driving. The Safety Score is scored on a 100-point scale, with safer driving resulting in higher scores. A unique feature of Tesla Insurance is that the premium may change every 30 days based on the previous month’s driving performance, so it’s important to understand that you aren’t locked into a rate the way you would be with a typical car insurance policy that has a six-month or one-year term. Interested Tesla owners can start a quote directly in their Tesla mobile app.

Tesla Insurance is currently available in 12 states, including:

• Arizona
• California (real-time driving Safety Score feature is not available)
• Colorado
• Illinois
• Maryland
• Minnesota
• Nevada
• Ohio
• Oregon
• Texas
• Utah
• Virginia

All Tesla Insurance claims are handled directly through the dedicated mobile app, where policyholders can even see repair estimates and schedule a repair appointment with a few clicks. Tesla offers two centers for repairs: Tesla Service Center for general repairs and Tesla Collision Center for more significant damage, such as damage to the body panels.

Other car insurance coverage for Teslas

Teslas need to be insured like regular gas-powered vehicles. Even if your Tesla has self-driving capabilities, you are still legally required to meet your state’s minimum insurance requirements. Most states require drivers to carry personal liability insurance, but if you live in a no-fault state, you will also most likely have to purchase personal liability protection (PIP).

In addition to liability insurance, Tesla owners may benefit from certain optional coverage types. For example, having roadside assistance coverage may come in handy if your vehicle runs out of charge and you get stranded. If you lease or finance your Tesla, your lessor may recommend you consider gap insurance, which may help repay your loan if your new car gets totaled. 

Another optional policy to consider is accident forgiveness, which may keep your Tesla insurance rate from increasing after your first accident. This coverage may be especially useful considering that Tesla owners already pay high insurance premiums.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes.

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: Tesla Model 3, Tesla Model Y, Tesla Model X, Tesla Model S and Toyota Camry (base).