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Tesla car insurance
Are you planning to own an EV? Though costly, you may plan to get a Tesla car due to its excellent safety features, battery range, and acceleration. But the expense never stops with buying a Tesla car. You need to get the best auto insurance policy for your Tesla car. That's where we can help you!
Last year, Tesla launched its own in-house insurance business, which is currently available in eight states. However, the Tesla car insurance in California offers more unique features than in the other states. The insurance rates are still determined by car mileage, driving history, location, and other factors, just like other insurers.
Tesla car insurance may be the best option for some drivers. However, the insurance has benefits and drawbacks as the company experiences some growing pains in its implementation.
For instance, Tesla collects your data using built-in sensors, letting them offer customized premiums based on your driving behaviors. So, expect to pay high Tesla insurance costs if you're a high-risk, unsafe driver.
How dependable is Tesla car insurance? What are its advantages and disadvantages of it? Of course, you should still compare auto insurance rates when shopping for Tesla auto insurance to ensure you're obtaining the cheapest insurance for your car. Our research will give you the answers for finding the best insurance for your Tesla car.
Pros and Cons
| Pros | Cons |
|---|---|
| Customized premiums based on your driving behavior. Safe drivers pay lower premiums. | High-risk drivers pay more for Tesla car insurance. |
| When you buy Tesla car insurance, you're insuring it with the company that knows all there is to know about it. | Tesla car insurance is customized based on your driving behavior. It will b difficult to compare the insurance with the policies of other insurers. |
| Tesla understands how its vehicles work. So, they will be able to investigate accidents more effectively with this information. | |
| Traditional auto insurers charge high premiums for Tesla drivers. Tesla auto insurance costs you less compared to them. | Lack of some unique insurance features in other states except California. |
| You can expect the in-house insurance policy to improve in the coming years. | Lack of bundling discounts as Tesla offers only auto insurance. |
| Tesla also calculates your premium based on how much you use the autopilot service. The lesser you use, you may have to pay higher premiums. |
How does Tesla Insurance work?
Tesla car insurance works similarly to other types of insurance. Like other insurers, the insurance offers collision, comprehensive, liability, and other coverages. However, unlike other insurers, Tesla customizes insurance premiums based on the information from your car. Tesla collects the data from built-in sensors, allowing them to provide personalized Tesla Insurance costs based on your driving behavior.
Tesla assesses each driver's risk based on their driving habits, then charges premiums based on those driving habits, rather than pushing customers into inappropriate risk groups based on demographics. You can get a Tesla Auto Insurance coverage in under a minute if you live in California, Arizona, Ohio, Illinois, Colorado, Texas, Virginia, or Oregon. You can request a quote on Tesla's website to get an estimate of the price. To begin, you need to create an account or log in.
Then they will ask for personal info like your address and driving license number. Then you instantly purchase a policy. If you're looking for additional coverages, you can contact the Tesla Insurance phone number to talk with an expert agent.
How much does insurance cost for a Tesla?
The average annual rate of insuring a new Tesla is around $3,930. However, the Tesla car insurance cost varies greatly depending on which insurer you select and your car model. The Model Y, Tesla's newest model, has the lowest insurance cost. The Model S is the most expensive Tesla mode to insure, costing an average of $4,968 per year for the base model.
Which companies offer the cheapest insurance for a Tesla?
With an annual average rate of $2,042, Tesla Insurance has the cheapest auto insurance rates for insuring a Tesla. Our research found that State Farm offers the second-cheapest insurance on a Tesla, with an annual average rate of $2,638 per year.
| Company | Average annual rate |
|---|---|
| Tesla | $2,042 |
| State Farm | $2,638 |
| USAA | $2,922 |
| Nationwide | $3,609 |
| Progressive | $5,964 |
Tesla car insurance: Rates by model
Model 3
With a starting price of around $44,990, the Model 3 is Tesla’s most affordable model. However, Tesla Model 3 insurance cost remains expensive at $3,398 per year for the most recent base model. Choosing one of the more expensive Model 3 models, with larger batteries and faster speeds, will increase the Tesla Model 3 insurance cost by a few hundred dollars.
| Model Year | Variant | Annual average rate |
|---|---|---|
| 2022 | Standard Plus | $3,398 |
| 2022 | Performance | $3,764 |
| 2022 | Long Range | $3,620 |
| 2021 | Standard Plus | $3,340 |
| 2020 | Standard Range PI | $3,211 |
| 2019 | - | $3,176 |
| 2018 | Long Range | $3,180 |
| 2018 | - | $3,088 |
Model X
Tesla's high-end full-size SUV has an average annual insurance cost of around $4,287. Tesla Auto Insurance offers the lowest rates for insuring this model.
| Model Year | Variant | Annual average rate |
|---|---|---|
| 2022 | Plaid | $4,287 |
| 2022 | Long Range | $4,287 |
| 2021 | - | $3,822 |
| 2020 | Long Range | $4,057 |
| 2019 | - | $3,886 |
| 2018 | 75D | $3,663 |
| 2017 | 90D | $3,844 |
Model S
With a starting price of $94,990, this model costs you high for insurance. Tesla car insurance costs around $4,968 for ensuring Model S. The insurance cost of the Plaid variant of Model S is less than that of its base model.
| Model Year | Variant | Annual average rate |
|---|---|---|
| 2022 | Long Range | $4,968 |
| 2022 | Plaid | $4,875 |
| 2021 | Long Range | $4,871 |
| 2020 | Long Range | $4,754 |
| 2019 | - | $4,604 |
| 2018 | 60 | $4,178 |
| 2017 | 60 | $4,069 |
Model Y
With an annual average rate of $3,069, Model Y has the cheapest Tesla car insurance.
| Model Year | Variant | Annual average rate |
|---|---|---|
| 2022 | Performance | $3,069 |
| 2022 | Long Range | $3,360 |
| 2021 | Standard Plus | $2,844 |
| 2020 | Long Range | $3,042 |
Tesla Model 3 insurance rates by state
| State | Average rate (cheapest) | Insurer |
|---|---|---|
| Alabama | $1,304 | Nationwide |
| Alaska | $1,496 | Umialik |
| Arizona | $1,218 | QBE |
| Arkansas | $1,150 | Southern Farm Bureau Casualty |
| California | $1,532 | Wawanesa |
| Colorado | $927 | American National |
| Connecticut | $1,321 | Kemper |
| Delaware | $1,530 | Travelers |
| Florida | $2,430 | Travelers |
| Georgia | $1,386 | Nationwide |
| Hawaii | $1,270 | State Farm |
| Idaho | $534 | American National |
| Illinois | $766 | Pekin |
| Indiana | $673 | Hastings Mutual |
| Iowa | $753 | Hastings Mutual |
| Kansas | $1,164 | Nationwide |
| Kentucky | $1,786 | Grange |
| Louisiana | $1,904 | Southern Farm Bureau Casualty |
| Maine | $761 | Concord Group |
| Maryland | $1,494 | Travelers |
| Massachusetts | $597 | State Farm |
| Michigan | $1,009 | Secura |
| Minnesota | $773 | Secura |
| Mississippi | $761 | Direct Auto |
| Missouri | $1,362 | Nationwide |
| Montana | $1,277 | QBE |
| Nebraska | $679 | American National |
| Nevada | $1,412 | CIG |
| New Hampshire | $764 | MMG |
| New Jersey | $1,335 | Plymouth Rock |
| New York | $1,033 | NYCM |
| New Mexico | $1,334 | Nationwide |
| North Dakota | $1,008 | Nationwide |
| North Carolina | 1,017 | Utica National |
| Ohio | $709 | Buckeye |
| Oklahoma | $1,737 | American Farmers & Ranchers |
| Oregon | $1,027 | QBE |
| Pennsylvania | $1,008 | Nationwide |
| Rhode Island | $1,727 | Travelers |
| South Carolina | $631 | American National |
| South Dakota | $1,141 | Farmers Mutual of Nebraska |
| Tennessee | $1,005 | Penn National |
| Texas | $1,297 | Texas Farm Bureau |
| Utah | $1,010 | QBE |
| Vermont | $710 | Union Mutual |
| Virginia | $893 | Main Street America |
| Washington DC | $1,080 | Pemco |
| West Virginia | $1,164 | Nationwide |
| Wisconsin | $66 | Secura |
| Wyoming | $108 | American National |
Tesla auto insurance program review
Tesla car insurance is available in these eight states - Arizona, California, Colorado, Ohio, Texas, Illinois, Virginia, and Oregon. Except in California, the company determines rates in other states using the ‘Safety Score,’ with zero consideration for speeding tickets and other offenses. Tesla intends to start selling its insurance in 45 states by 2022.
Tesla drivers with excellent safety scores can save even more money. For instance, a perfect 100 score offers you a 37% discount off the base rate. When determining the auto insurance cost, Tesla does not consider any of the following factors.
- Age
- Gender
- Marital status
- History of accidents
- Speeding tickets
- Credit
- Claims history
The major disadvantage of Tesla car insurance is that it only covers particular non-Tesla vehicles. As a result, you may need to maintain two different car insurance policies if you have multiple cars in your house. In addition, it may require you to sign up for multiple policies and forfeit a possible bundle discount.
Tesla insurance rates by Safety Score
While Tesla car insurance rates are affordable for most drivers, the rates will lower further if you keep a high Safety Score. Tesla modifies rates in five-point increments based on the Safety Score. So, if your score is between 95 and 99, your annual rate will rise more than the rate if you have a score of 100.
How does a Safety Score work?
In general, Tesla's Safety Score functions similarly to other telematics vehicle insurance. It tracks your driving habits and assigns a score ranging from 0 to 100, with most drivers obtaining an 80 or higher. Your Safety Score is calculated daily, and a weighted average based on driving time is calculated over the last 30 days. But, unlike many other telematics systems, Tesla is particular about what makes your score fall.
- Hard braking (percent of the time)
- Unsafe following time (percent of the time)
- Number of instances of forced autopilot disengagement
- Aggressive turning (percent of the time)
- Forward collision warnings (every 1,000 miles)
| Range of Safety Score | Annual rate | Percent change from 80 Safety Score |
|---|---|---|
| 100 | $889 | -25% |
| 95-99 | $1,052 | -12% |
| 90-94 | $1,105 | -8% |
| 85-89 | $1,151 | -4% |
| 80-84 | $1,198 | - |
| 75-79 | $1,238 | 3% |
| 70-74 | $1,278 | 7% |
| 65-69 | $1,317 | 10% |
| 60-64 | $1,364 | 14% |
| 55-59 | $1,410 | 18% |
| 50-54 | $1,463 | 22% |
| 45-49 | $1,523 | 27% |
| 40-44 | $1,590 | 33% |
| 35-39 | $1,663 | 39% |
| 30-34 | $1,756 | 47% |
| 25-29 | $1,862 | 56% |
| 20-24 | $2,001 | 68% |
| 15-19 | $2,200 | 85% |
| 10-14 | $2,513 | 111% |
| 5-9 | $3,143 | 164% |
| 1-4 | $3,143 | 164% |
| 0 | $6,656 | 460% |
Where is Tesla insurance available?
You can currently get Tesla car insurance in these eight states.
- California
- Arizona
- Texas
- Colorado
- Virginia
- Oregon
- Ohio
- Illinois
Tesla car insurance rates in California
Tesla insurance costs in California differ from those in other states because they are not based on your Safety Score. However, we discovered that Tesla's insurance in California is still the most affordable option.
| Company | Annual rate |
|---|---|
| Tesla | $2,258 |
| Kemper | $3,063 |
| State Farm | $3,857 |
| Farmers | $3,933 |
| California average | $3,945 |
| Mercury | $4,375 |
Why are Teslas so expensive to insure?
Tesla cars are expensive to insure due to their high buying and service costs. Collision coverage alone contributes heavily to the insurance cost. Because of their higher repair and maintenance expenses than other luxury vehicles, Teslas are particularly expensive to insure for crash damage. Various factors affect the insurance cost of a Tesla car.
- Only a select number of Tesla-approved body shops take the repair works. As a result, high costs are incurred for training and equipment to get qualified.
- On average, electric cars are more expensive to fix and therefore insure.
- The aluminum frame of the Model S is more expensive and more difficult to maintain than a steel frame.
Even a little fender bender can easily cost several thousand dollars to repair a Tesla for all of these reasons. Moreover, the cost per collision may continue to surge as cars incorporate more unique parts and technologies. As a result, even while Tesla's technology attempts to reduce crashes, as evidence suggests its Autopilot feature does, insurers may consider the size of a claim if an accident occurs.
Tesla GAP Insurance
Tesla's gap insurance pays the difference between how much you still owe on your car and its worth if it's stolen or destroyed. Gap insurance isn't usually required, but if you lease a Tesla, it's already part of your funding.
The most important thing we want to know is whether or not Tesla offers gap coverage in places where it doesn't sell insurance. Tesla insurance is only available in 12 states, but can you still buy gap coverage from Tesla in other parts of the U.S.? If so, is it still priced like an insurance product, or is it priced like the often more expensive gap plans from manufacturers?
Is it Worth to get Tesla GAP Insurance?
Tesla's website doesn't have any of these answers. They have a phone line (1-844-34-TESLA) that you can call if you have questions or concerns.
How do I get GAP insurance for my Tesla?
Tesla's website doesn't have any of these answers. They have a phone line (1-844-34-TESLA) that you can call if you have questions or concerns.
But if you call this number, know that the wait times and pre-recorded texts may be annoying. One of these messages tells you to sign into your Tesla account online. However, this advice is only very helpful if you already have an insurance policy with Tesla. Even though Tesla Insurance is open Monday through Friday from 6 a.m. to 5 p.m. and Saturday from 9 a.m. to 2 p.m. (PST), there is no promise that an agent will be available to talk to you.
Is Tesla car insurance better than traditional car insurance?
Yes. Tesla’s auto insurance is affordable when compared to other major insurers. However, you can get in-house insurance in just eight states.
Key Takeaways
- Tesla offers you auto insurance at lower rates than most of the major insurers.
- Model Y, the latest one from Tesla, has the lowest insurance cost.
- Currently, Tesla car insurance is available in eight states. By the end of 2022, the company plans to sell the insurance in 45 states.
How to get Tesla insurance with Way.com
It isquite simple to geta Tesla insurance quote via Way! Visit our website and compare the quotes from various insurers. The best way is to buy the cheapest Tesla auto insurance policy from insurers that offer it. Do you still have doubts about how can you get a Tesla insurance quote?Then, get in touch with our Way.com agents. They will help you find out the best policy for you at the cheapest rate!
INSURANCE AGENT EXPERTS
Auto Insurance Data Methodology
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
DATA SOURCES
Way.com’s Insurance Broker Quote Data
FAQ
Is Tesla's insurance program cheaper than other insurers?
Yes. Tesla car insurance is cheaper when compared to other major insurers.
How much is a Tesla?
The cost of a Tesla car depends on the model you choose. Model 3, Model Y, Model X, and Model S are among the company's current offerings. Tesla car can cost you from $46,440 to $131,440. The Model 3 is the most affordable Tesla model, while the Model X and Model S are the most expensive.
Is a Tesla expensive to insure?
Yes. Tesla cars are expensive to insure as they have high repair costs.
What insurance coverage does Tesla offer?
In addition to liability, collision, and comprehensive coverages, Tesla provides coverage for wall chargers, electronic key replacement, and identity fraud. There's also rental car reimbursement, roadside assistance, and gap insurance.
Why are Tesla parts so expensive?
First of all, there the market for Tesla replacement parts is small. Also, only the company makes the replacement parts, making it difficult for you to get the parts at a low cost.
Is Tesla Insurance worth it?
Yes. Only if you reside in one of the eight states where the company sells the insurance policy. The company offers standard coverages like liability, comprehensive and collision, and coverage for wall chargers, electronic keys, and identity fraud.
How much is full coverage insurance on a Tesla?
The insurance offered by the company has an annual average rate of around $2.042 for full coverage.
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