Car insurance for Teslas

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In the second quarter of 2021, Tesla delivered 201,250 new cars to expectant customers. These new Tesla owners may be interested in purchasing auto insurance to protect their high-tech vehicles in the event of an accident. Since these are expensive, luxury cars, Tesla drivers typically pay more than average for car insurance. On average, Tesla drivers pay between $2,283 and $3,802 per year for full coverage car insurance, according to Bankrate’s study of quoted annual premiums. In contrast, the average cost of full coverage car insurance for a 2019 Toyota Camry is $1,674 per year.

Some of the factors that may impact the average cost of car insurance are your age, state, credit score and your vehicle’s make and model. Additionally, every car insurance carrier charges a different rate for the same vehicle types. If you are shopping for Tesla insurance, we received sample rates for the following models:

  • Tesla Model 3
  • Tesla Model S
  • Tesla Model X

Car insurance for Teslas: by model

Teslas are considered luxury vehicles, and the average Tesla insurance cost reflects the high vehicle value. The table below includes the average annual full coverage car insurance rates for three of Tesla’s most popular models. Keep in mind that these are just average rates and the actual price you will pay depends on your unique circumstances. However, these sample rates may help you compare providers and gauge how much you could pay for Tesla Insurance.

Tesla car insurance Average annual full coverage premium
Tesla Model 3 $2,283
Tesla Model S $3,802
Tesla Model X $3,324

Cheapest car insurance companies for Tesla Model 3

The Tesla Model 3 has a starting price of about $39,000. USAA offers the cheapest Tesla Model 3 insurance, based on our research, with an average annual full coverage premium of $1,303 and an average annual minimum coverage premium of $326. However, USAA only sells insurance to military members, veterans and their family members; if you do not qualify, we found Amica offers the next cheapest average annual rates. Geico is the most expensive provider, according to quoted premiums, with an average annual full coverage rate of $3,199.

The table below highlights the average cost of Tesla Model 3 insurance from five of Bankrate’s picks for the best car insurance companies with the biggest market share. As rates vary widely by company, even for the same make and model, it can be helpful to compare multiple quotes to find the best rates.

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
USAA $326 $1,303
Geico $397 $3,199
State Farm $427 $1,622
Erie $430 $1,592
Amica $367 $1,435

Cheapest car insurance companies for Tesla Model S

Tesla Model S insurance is significantly more expensive than insurance for the Model 3. Our study of quoted rates found Erie is the cheapest provider for full coverage insurance, with an average annual rate of $1,901. Amica is the cheapest provider for a minimum coverage policy, with an annual average rate of $345. For the Model S, Geico is the most expensive provider overall, with an average annual full coverage premium of $3,378.

Here is a look at the average rates for Tesla Model S insurance:

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
USAA $376 $2,248
Geico $417 $3,378
State Farm $467 $2,761
Erie $348 $1,901
Amica $345 $2,646

Cheapest car insurance companies for Tesla Model X

Although the Tesla Model X is not technically a sports car, it is the fastest electric car on the market. It is also one of the most expensive Tesla models to insure. For Model X premiums, the most affordable insurance rate we found was from Amica, with an average premium of $2,016 per year for full coverage insurance and $345 per year for minimum coverage insurance. Geico has the highest annual full coverage premium, whereas State Farm has the highest annual minimum coverage rate. Here are the cheapest car insurance companies for Tesla Model X insurance on our list. Given your circumstances and driving history, rates will likely vary from the ones below.

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
USAA $391 $2,190
Geico $420 $3,557
State Farm $467 $2,124
Erie $430 $2,303
Amica $345 $2,016

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 can benefit from certain optional coverages. For example, having roadside assistance can come in handy if your vehicle runs out of charge and you get stranded, or if you get a flat tire. If you lease or finance your Tesla, your lessor may recommend you consider gap insurance, which can help repay your loan if your car gets totaled.

Another optional policy to consider is accident forgiveness, which may keep your car insurance rate from increasing after your first accident. This coverage may be especially useful because Tesla owners already pay high insurance premiums. If your car insurance rate increases after an accident, traffic violation or another incident, keep in mind that you can always consider switching carriers if you find a lower price.

Frequently asked questions

What is Tesla insurance?

Tesla itself offers insurance policies specifically for Teslas, which may save customers between 20% and 30% on their premium. Currently, this Tesla Insurance program is only offered to customers in California, but the company is expected to expand coverage to new geographic locations later in 2021. Tesla Insurance offers coverage similar to that of large auto insurance providers. Tesla offers standard liability, comprehensive and collision coverage, as well as uninsured/underinsured motorist coverage and MedPay.

How much insurance do I need?

Minimum liability insurance requirements vary by state, and how much insurance you need will vary among drivers. However, many insurance experts recommend purchasing more insurance than your state requires to ensure that you are financially and legally protected in the event of a collision.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 Tesla Model 3, Model S and Model X, commute five days a week and drive 12,000 miles annually.

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

Written by
Lizzie Nealon
Insurance Writer
Lizzie Nealon is an insurance writer for Bankrate. Her favorite part of the job is making home, auto and life insurance digestible for readers so they can prepare for the future.
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