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Tesla Insurance review 2024

Updated Mar 29, 2024
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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

What’s new with Tesla?

Tesla plans to offer car insurance in all 50 states soon. Minnesota, Maryland and Utah are the newest states with Tesla insurance availability as of 2023.

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, as the carrier does not use traditional car insurance rating factors like age, gender, claim history and driving record.

Instead, Tesla Insurance calculates a monthly Safety Score that grades five factors when you drive: hard braking, aggressive turning, unsafe following distance, forced autopilot disengagement and forward collision warnings. 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 your chosen coverage selections.

While Tesla Insurance offers standard coverage like bodily injury and property damage liability, as well as comprehensive and collision coverage, optional coverage will 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.

Green circle with a checkmark inside

Pros

  • Designed for the needs of electric vehicle owners
  • Several optional coverage types available depending on the state
  • Tesla owners can also insure non-Tesla vehicles
  • 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
Red circle with an X inside

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
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Tesla car insurance cost

Average rates for Tesla car insurance are not available. When it comes to Tesla Insurance, your actual rate will vary depending on how safely you drive and could fluctuate over time. The national average cost of car insurance is $2,542 per year for full coverage, which is about $212 per month. To understand what your 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 and Standard & Poor's, 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.

In 2023, Tesla car insurance received its first complaint index of 5.74, significantly above the industry average. This figure suggests a higher volume of complaints compared to other insurers, adjusted for company size.

Tesla car insurance discounts

The discount opportunities available to Tesla policyholders depend on the state they live in. Common savings opportunities include:

  • Airbag discount: Drivers who have a car that is equipped with an airbag meeting federal crash requirements could get this discount. Available in California.
  • 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. Available in Colorado, Illinois, Nevada, Ohio, Oregon, Utah and Virginia.
  • 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. Available in California.
  • Good student discount: Full-time undergraduate or graduate students in good academic standing can qualify for this discount. Available in California.
  • Multi-car discount: If more than one vehicle is insured with Tesla Insurance, this discount is added automatically. Available in all states.
  • Group discount: Current Tesla employees can receive this discount if insured with Tesla Insurance. Available in all states except Arizona.
  • Anti-theft device discount: If your car has an alarm or active disabling devices, this discount could be added to your policy. Available in California and Illinois only.

Get personalized auto insurance quotes

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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 special 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 if it breaks. Currently, Lemonade car insurance is only available in Illinois, Ohio, Oregon, Texas and Tennessee.

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 between 22 and 40 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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Why you can trust Bankrate

Our insurance editorial team includes licensed agents with decades of combined experience, and we used our intimate knowledge of the industry to conduct this in-depth Tesla insurance review.

46

years of industry expertise

122

carriers reviewed

20.7K

ZIP codes examined

1.2M

quotes analyzed

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.

Another thing to keep in mind is that, because Tesla Insurance tracks real-time driving behavior, it is also possible for premiums to increase just as much as they could decrease. Additionally, Tesla Insurance may be a better fit for those who are well-versed in car insurance, as the carrier has limited live agent support and no physical locations.

Lastly, compared to national car insurance carriers, Tesla is not rated by third-party agencies for either financial strength or customer satisfaction.

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

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.

Reddit user 1
Apr 12, 2023
If you live in a city I would not recommend it...
“If you live in a city I would not recommend it. I tested it out for a month and my premium went from like $80/month to $120/month. If I drove on narrow streets, it would ding me for being too close to other cars. If I was driving near a street that has a curve/bend and there’s an oncoming car on a different lane…it’ll think I’m going to crash into it, it’ll start the collision warning and ding me again for it. My gym has a bend to get into it so this would happen fairly often.”
Reddit user 2
Apr 12, 2023
Got rear-ended recently in my Model Y two...
“Got rear-ended recently in my Model Y two weeks after delivery. Filed a claim the same day(Saturday) with both my insurance (Tesla Insurance) and person at faults insurance (USAA). Got an email Sunday from Tesla to submit additional info. Tesla Insurance reached out to me the following Monday to discuss everything and said they would do the subrogation thing. I already had body shopped picked out (Tesla Collision) and gave her the info right then. She set me up a rental through Enterprise for when I would drop off my car. 4 weeks waiting for an appointment, 3 weeks for the repair. Also didn’t want an Enterprise rental and wanted a Model 3 from Hertz, reimbursement check for that rental was received about a week after the rental was returned. Other than my claims advisor not picking up my calls a few times, I would say it was definitely not as bad as people say and definitely worth the savings for me. I am definitely considering switching though as not to worry about the driving score but not anytime soon I think.”
Reddit user 3
Apr 13, 2023
I had Tesla insurance for about three months...
“I had Tesla insurance for about three months, then went back to my previous insurer. Yes, Tesla insurance can be cheap. However, it involves you stressing about your Safety Score all the time, and with false forward collision avoidance warnings (for me specifically) that could not be corrected, I decided that it wasn't worth having. Having to drive with always worried about being too close to the car in front of you, or taking a turn too fast, or braking too hard, was just not worth it.”
Reddit user 4
Jan 14, 2023
Had it a few months. Someone hit my parked...
“Had it a few months. Someone hit my parked Model 3 in a lot and fled a week after I got it. So far Tesla Insurance (while slow to respond) has helped with every question I've had and worked with the Tesla Collision Center near me to handle all the repairs. I have a lot of fun driving, especially in the mountains, and my score is still 99. Have fun and then balance it out with safe careful driving to keep your score up is what I've found. Price is $65 a month for $500 deductibles and 100k/300k coverage (plus $45/day rental, roadside plus, and PIP). Same insurance with Geico (who I had been a safe driver with for over 10 years) and State Farm were both quoting me well over $200 a month.”

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 adaptors. The company can even help you find a Tesla-certified installer for wall connectors or solar roof panels.

Frequently asked questions about Tesla insurance

Written by
Ashlyn Brooks

Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.

Edited by Editor, Insurance