Tesla Insurance review 2025
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At a glance
Bankrate's take
Drivers who want nontraditional car insurance with coverage options tailored to the needs of an electric car owner may want to consider Tesla Insurance.
- Tesla’s real-time insurance model could provide cheap coverage for safe drivers
- Tesla Insurance allows for straightforward policy management directly through the Tesla app
- In California, Safety Score is only used for educational purposes for drivers and does not impact your premiums
- Tesla Insurance is yet to be rated by J.D. Power and AM Best
New
In a move that may be of interest to California drivers, Tesla recently announced that all new policies in the state would be underwritten by Tesla Insurance itself, rather than State National Insurance Company, as was previously the case. Policyholders who switch to the new underwriter will earn a three percent discount.
As of 2025, Tesla offers car insurance in 12 states, with plans to expand into more of the U.S. in the future. Current availability includes Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia. In August 2024, the company released new details about state-specific discounts like multi-car and good driver discounts.
Tesla car insurance review
Tesla Insurance is known for its telematics-based car insurance, meaning that real-time driving behavior plays an integral role in calculating car insurance rates. For this reason, Tesla Insurance may be a natural fit for drivers who want to have a direct influence on their car insurance cost, as the carrier does not use traditional car insurance rating factors like age, gender, claim history and driving record when calculating premiums.
Instead, Tesla Insurance calculates a monthly Safety Score that grades seven factors when you drive: hard braking, aggressive turning, following distance, excessive speeding, late-night driving, forced autopilot disengagement and unbuckled driving. A higher Safety Score results in lower premiums, while a lower Safety Score could result in more expensive premiums. Other factors that go into Tesla Insurance premiums include which car you drive, where you live, how much you drive and which coverage you select. Tesla doesn’t use the Safety Score to calculate rates in California due to state-imposed insurance laws. If you receive Safety Score data, it will be for educational and informational purposes only.
Tesla offers standard coverage options, including bodily injury, property damage liability, collision and coverage. Other options vary by state. Additionally, depending on state availability, Tesla Insurance may also offer an Autonomous Vehicle Protection Package that could cover expenses like electronic key replacement, loss or damage to the wall charger and incidents when the vehicle is being driven by autopilot.
Pros and cons of Tesla car insurance
Tesla's unique car insurance has many benefits, but it's not without its shortcomings. Below is a summary of Tesla car insurance's pros and cons as identified by our insurance editorial team.
Pros
- Several optional coverage types available, depending on the state
- Tesla owners can also insure non-Tesla vehicles in California
- Most states allow for real-time driving behavior rating, which allows drivers to have some control over their premium
- Safer drivers could get lower insurance rates
- Roadside assistance is available
Cons
- Only available in 12 states
- Only sells car insurance, so bundling is not available
- Coverage is limited to Tesla owners in all states except California
- Most contact with Tesla is done through the app, so it may be difficult to reach a live agent
- Lack of third-party scores for customer or claims satisfaction
Tesla car insurance cost
Average rates for Tesla car insurance are not available. Your individual rate will vary depending on several factors, including how safely you drive, and could fluctuate over time. For reference, the national average cost of car insurance is $2,697 per year for full coverage and $820 per year for minimum coverage. To understand what your Tesla Insurance rate might be, it’s advisable to obtain a personalized quote directly from Tesla, as this will provide the most accurate reflection of the cost based on your unique driving profile and vehicle specifics.
Tesla Insurance customer satisfaction
While Tesla car insurance is currently not rated by third-party agencies like J.D. Power for customer or claims satisfaction or financial strength assessors like AM Best, these evaluations can be instrumental in gauging an insurer's reliability and service quality. Third-party ratings offer an external perspective on an insurer's performance in key areas, including customer service, claims handling and financial stability. For Tesla Insurance, the absence of these ratings means that potential customers might look toward user reviews, Tesla community forums and direct customer testimonials to understand the satisfaction levels and experiences of existing policyholders.
Tesla car insurance customer complaints
The National Association of Insurance Commissioners (NAIC) Complaint Index offers insight into customer satisfaction and the frequency of complaints relative to the size of the insurer. A baseline score of 1.00 represents the industry average, with scores above indicating more complaints than average and scores below suggesting fewer. The NAIC also tailors these indexes to specific product types, allowing for more in-depth comparisons.
The National Association of Insurance Commissioners (NAIC) Complaint Index offers insight into customer satisfaction and the frequency of complaints relative to the size of the insurer. A baseline score of 1.00 represents the industry average, with scores above indicating more complaints than average and scores below suggesting fewer. The NAIC also tailors these indexes to specific product types, allowing for more in-depth comparisons.
Tesla car insurance discounts
The discount opportunities available to Tesla policyholders depend on where you live. Details by state are available on Tesla’s website. Common savings opportunities include:
- Airbag discount: Drivers who have a car equipped with an airbag that meets federal crash requirements could get this discount.
- Defensive driver discount: Drivers over the age of 55 who complete a safety course as approved by their state’s DMV may qualify for this discount.
- Good or elite driver discount: Drivers with no major violations and no more than one minor incident in the past three years could land a good driver discount, while those with no violations or at-fault accidents in five years might be eligible to get an elite driver discount.
- Good student discount: Full-time undergraduate or graduate students in good academic standing can qualify for this discount.
- Multi-car discount: If more than one vehicle is insured with Tesla Insurance, this discount is added automatically.
- Group discount: Current Tesla employees can receive this discount.
- Anti-theft device discount: If your car has an alarm or active disabling devices, this discount could be added to your policy.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Compare Tesla Insurance with other insurers
Bankrate’s Tesla Insurance review provides a comprehensive look at this carrier, but if you’re looking for the best car insurance for your Tesla, it can help to compare other options. Here are some of the best car insurance competitors to think about when shopping for car insurance quotes:
Tesla Insurance vs. Lemonade
Tesla drivers who like Tesla’s digital-first platform and specialized EV car insurance may want to check out Lemonade. The carrier provides coverage and discounts specific to EVs and hybrids, offers emergency charging if your battery drains while on the road and provides coverage for your wall or portable charger. Currently, Lemonade car insurance is only available in Arizona, Colorado, Illinois, Ohio, Oregon, Texas, Tennessee and Washington.
Learn more: Lemonade Insurance review
Tesla Insurance vs. Root
Drivers who want features like Tesla’s telematics-based car insurance could consider Root car insurance. The carrier has a strict sign-up process — interested drivers must first pass a test drive before receiving a coverage offer and quote. Similar to Tesla, Root is not available in every state.
Learn more: Root Insurance review
Tesla Insurance vs. Travelers
Travelers offers a specific discount for those who own or lease an electric vehicle. Additionally, the carrier’s IntelliDrive program tracks real-time driving behavior, with potential savings opportunities of up to 30 percent for safe driving. While Travelers car insurance isn’t entirely based on the telematic IntelliDrive program, it is a nationally available insurance carrier.
Learn more: Travelers Insurance review
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Is Tesla Insurance a good insurance company?
Tesla Insurance is a relatively new car insurance company but could fill a need for Tesla drivers who want a different option for car insurance. Tesla drivers may already be using the Tesla app to manage their vehicles and submit service requests, so being able to manage their car insurance through the app as well could be another convenience.
Tesla Insurance also doesn’t factor in usual car insurance rating factors like driving history and credit history, instead giving drivers a chance to be rated based on their real-time driving performance (in most states). That can be a pro or con depending on your situation. Older drivers with a good record might not see much benefit, but younger drivers who are typically seen as riskier to insure might be able to get Tesla coverage for cheaper than other policies if they drive safely.
It's worth noting, however, that drivers who may struggle to maintain safe driving habits on the road could see an increased rate. According to some drivers on public forum review sites, Tesla's Safety Score app can be sensitive, lowering their score for minor infractions — this could mean that even drivers who are generally careful when behind the wheel might see an increase.
Potential Tesla policyholders should also be aware that because it is a smaller company and fairly new, Tesla insurance is not rated by any major third-party organizations that monitor factors like customer satisfaction and financial strength. In order to assess these characteristics, it may be helpful to talk to others who have Tesla coverage and read reviews online.
What are real-life customers saying about Tesla Insurance?
To look deeper into the Tesla Insurance experience, we've turned to real-life accounts from customers sharing their insights on Reddit. Although Reddit is primarily a community discussion platform rather than a dedicated review site, it offers a rich tapestry of user experiences, making it a valuable resource for prospective Tesla Insurance policyholders. Through these discussions, individuals candidly share their personal experiences, from customer service interactions to the claims process, providing a nuanced view of what new customers might expect when choosing Tesla for their car insurance needs.
Reddit users offer varied experiences with Tesla Insurance, highlighting the impact of the driving score on premiums and the concerns about how certain driving scenarios, like narrow streets or bends, might affect it. Some shared positive claim experiences, noting efficient handling and coordination with Tesla Collision Centers, despite occasional communication hiccups. Others expressed frustration over constant worry about maintaining a high safety score, leading them to switch back to traditional insurers despite the potential savings with Tesla.
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Tesla Insurance company details
- Customer service: 1-844-34-TESLA (1-844-348-3752)
- Claims: Claims are filed through Tesla’s mobile app. Questions about a claim can be directed to the claims adjuster assigned to that claim.
State availability
Tesla only writes car insurance for Tesla drivers in 12 states: AZ, CA, CO, IL, MD, MN, NV, OH, OR, TX, UT and VA. Tesla does not offer real-time driving behavior insurance rating in California at this time.
Tesla Insurance tools and benefits
Tesla's foray into insurance is focused solely on auto insurance. However, it does have additional products and features that may be particularly useful to the owners of electric vehicles.
- Charging calculator: Tesla's charging calculator may help current and potential EV owners discover how much money they could save by switching from gas to electric vehicles.
- Supercharger voting: Finding a location to charge your vehicle can be a challenge. However, every three months, Tesla has a voting cycle where Tesla owners can vote on where the next supercharger location should be. Owners can also suggest new sites and potentially host a supercharging station at their property.
- Charging station options: Tesla offers many charging solutions, from installing residential charging stations to mobile connectors and adapters. The company can even help you find a Tesla-certified installer for wall connectors or solar roof panels.
Frequently asked questions about Tesla insurance
