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The Tesla S is the company’s sport luxury model, with a starting price of just over $106,000 for the base model and $137,000 for the Plaid model. The 2022 Tesla Model 3 earns the U.S. Department of Energy’s top spot for most fuel efficient car of the year, getting a combined 132 miles per charge, 138 city miles and 126 highway miles. While gas may not be a cost of ownership with a Tesla Model 3, insurance is a factor to consider. According to Bankrate’s 2021 study of quoted annual premiums, Tesla Model S car insurance averages $3,802 per year.
There are many factors that go into determining how much you might pay for Tesla Model S insurance, including customizable features and safety scores, your age, driving and claims history, your ZIP code (in most states) and the insurance company you choose to insure your electric vehicle. Here’s a closer look at the factors that could affect your premiums.
How much does it cost to insure a Tesla Model S?
The Tesla Model S insurance cost is $3,802 per year for full coverage, based on quoted annual premiums. Rates may be higher or lower depending on the insurance provider you choose. Teslas are likely more expensive to insure because of the manufacturing cost and materials used. Besides the personal factors mentioned that could affect the cost of car insurance, model-specific items that can have a significant impact to vehicle coverage rates include:
- Crash rate stats per make/model: The Model S earned the IIHS Top Safety Pick+ rating for 2022, getting a good, or green, rating in all categories except for the ease of use for seat belts and child restraints, which earned an acceptable rating. This is in line with previous years, where the Model S earned superior ratings from the IIHS, except for headlamps, which the IIHS believes do not provide sufficient visibility in curves.
- Price of parts: Tesla manufacturer parts can be pricey, with few aftermarket alternatives available. Repairing a Tesla provides an additional level of complexity; there are limited authorized repair shops and dealers. In addition, Teslas are manufactured using unibody casting. Minor damage to part of a front panel, for example, could mean a whole major section must be replaced. Cast frames are generally safer, but much more expensive in case of damage to isolated areas, which can also drive up insurance rates. For example, owners have received estimates of $7,000 to fix a small dent and scratch with no need for parts, while another got a $30,000 estimate to repair minor damage on the door and fender.
- Safety features: Tesla Model S vehicles come with a number of standard safety features that may offset the cost of coverage. Multiple cameras monitor surroundings to alert the driver of any hazards or vehicles in potential blind spots. There are air bags throughout the cabin including knee and overhead air bags. Traction control keeps the car safely on the road.
Car insurance for a Tesla Model S
Bankrate’s review of quoted 2021 annual premiums from Quadrant Information Services indicate minimum coverage for a Tesla Model S is not far off from the national average cost of car insurance for an economy sedan. However, most Tesla drivers will likely opt for full coverage due to the value of the vehicle, which provides comprehensive and collision coverage. Compared to the national average, full coverage for a Tesla Model S is quite a bit higher than the 2021 national average of $1,674 per year (average based on a 2019 Toyota Camry). Given the fact a Tesla Model S is considered a high-end, luxury vehicle, this difference in coverage cost is to be expected.
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Cheapest car insurance companies for a Tesla Model S
Bankrate collected quotes from a few of the best insurance companies for a better idea of how Tesla Model S car insurance rates can vary from one carrier to another. While these averages may be useful for the sake of comparison, actual rates will be different for each Tesla Model S driver.
Average annual premium for full coverage
The five following insurance companies have different rates for the same level of coverage, based on the Tesla Model S. Keep in mind that personal factors could affect your premiums, such as your location and driving record.
Tesla Model S features that impact insurance costs
Some of Tesla’s unique features may help reduce the cost of car insurance, while other aspects may cost more to insure. The features that may most significantly affect pricing are:
- Tesla’s own insurance: Tesla sells its own insurance in Arizona, California, Illinois, Ohio and Texas to keep rates competitive for drivers. Tesla Insurance assigns you a monthly Safety Score out of 100 points. The higher your Safety Score, the lower your monthly premium will be. If you’re a safe driver, Tesla Insurance could help save you money.
- Autopilot mode: You may qualify for a safe driving discount by using Tesla’s autopilot mode, which is similar to driver assistance technology and designed to help your Tesla drive safer by automating steering, accelerating and braking under your supervision. Exact discount availability and savings may vary by provider.
- Bioweapon Defense Mode: This setting turns on a state-of-the-art filtration system that siphons toxins out of your Tesla. This technology could help keep you safe during wildfires or other unsafe air conditions. However, it may be expensive to repair and could increase your car insurance costs.
- Sentry Mode: This anti-theft system activates cameras that record if anyone stands near your vehicle for an extended length of time. This surveillance may help deter potential car thieves, but cameras can be costly to repair and may increase your insurance costs.
Other car insurance coverage for a Tesla Model S
Few Tesla owners would likely opt for just the minimum amount of vehicle insurance required by their state due to Tesla’s luxury cost. Most states only mandate that drivers carry liability insurance. Liability insurance only pays for damages and injuries you cause to third parties. In case you are at fault in an accident, liability coverage does not reimburse you for damages and repairs to your car. Given the cost to repair or replace a Tesla Model S, full coverage is likely the preferred option for Tesla owners.
Full coverage car insurance includes comprehensive coverage and collision coverage. Collision coverage pays out to cover damages incurred when your vehicle collides with an object such as another vehicle, a tree or a light pole. Comprehensive coverage pays out to cover damage caused by issues such as extreme weather, flooding, vandalism or hitting an animal.
You may want to consider your individual needs when deciding what other coverage options you want. If you are financing a new Tesla, gap insurance coverage may be useful. It’s designed to pay the difference between the amount outstanding on the loan and the actual cash value of your new vehicle if the car is declared a total loss. Rental reimbursement coverage may also be helpful. While a standard policy may already provide some funds for a rental car in case your vehicle is in the shop following a covered loss, you may benefit from adding rental reimbursement due to the complexity of repairing and rebuilding a Tesla. Otherwise, you could potentially exceed the days included in the coverage while you are without your vehicle.
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 coverage that meets each state’s requirements. Our base profile drivers own a 2019 Tesla Model S, commute five days a week and drive 12,000 miles annually:
These are sample rates and should only be used for comparative purposes.