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Tesla Insurance review 2023
At a glance
About Bankrate Score
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 car insurance may be a good option for Tesla owners who want their insurance rates directly impacted by their driving habits instead of standard rating criteria.
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 2022.
Tesla car insurance
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 damages 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.
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
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
Tesla Insurance 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 $2,014 per year for full coverage, which is about $168 per month.
Tesla car insurance discounts
Similar to Tesla car insurance, the discount opportunities available to Tesla policyholders depend on the state they live in. Some unique savings options include:
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 asking for a car insurance quote:
Tesla Insurance vs. Lemonade
Tesla drivers who want 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, and offers emergency charging if your battery drains while on the road and 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
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 vehicle 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).
However, 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.
Tesla Insurance customer satisfaction
Tesla car insurance is not rated by third-party agencies like J.D. Power for customer or claims satisfaction. It also has not received any financial strength ratings from financial ratings agencies like AM Best and Standard & Poor’s. Possibly due to its limited availability, Tesla has a 0.0 complaint index score with the National Association of Insurance Commissioners (NAIC). It could be helpful to reach out to existing Tesla car insurance policyholders to learn more about their customer service and claims experience with the carrier.
Other 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.