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Key TakeAways

  • The annual average insurance cost of the Tesla Model 3 is $2736.
  • The most cost-effective insurance provider is Allied ($1044/year).
  • Insurance for the Model 3 is $93 more expensive than insurance for the typical car.

How Much It Costs to Insure a Tesla Model 3 and the Cheapest Company

The cost of insurance for a Tesla Model 3 is $1731, according to data from Way.com.

However, individual rates can differ based on your car's model year and the auto insurance provider. Compare insurance quotes from many companies to ensure you're getting the most comprehensive coverage at an affordable price.

Shopping around for a Tesla Model 3 car insurance policy is beneficial. To obtain the best rate, request tailored Tesla Model 3 quotes from various car insurance companies.

Different companies will charge you different amounts based on the model year of your car, and the least expensive option may change over time.

Your Tesla Model 3 insurance premium may vary depending on your car insurance company. The average annual premium for this car is $1731, although the exact amount will depend on the insurer. At $1269 annually, USAA has the least average insurance rate for a Tesla Model 3.

The Best Car Insurance Company for a Tesla Model 3

Check out the premiums below to see the typical annual costs for the Tesla Model 3 from reputable car insurance companies. Then, use Way.com to receive a quick quote for car insurance your car.

The most expensive choice is Arbella, with an average annual cost of $2347 for a Tesla Model 3. That represents a potential annual difference of $789.

Cheapest Insurance Companies Average Annual Cost
Allied $1044
Nationwide $1320
Vermont Mutual $1359
Tennessee Farmers $1401
USAA $1551
American Family $1569
Erie $1659
Country $1701
State Farm $1722
21st Century $1740
Southern Farm Bureau $1779
Arbella $1833

Auto insurance companies use several factors to calculate prices for a specific model. Usually, the cost is influenced by the car's categorization and worth.

Because it is an electric vehicle, the Tesla Model 3 has a high insurance cost. In addition, electric car repair expenses are higher than those for conventional cars, which raises insurance premiums.

Drivers may want to consider additional factors besides Tesla Model 3 insurance pricing to locate the ideal auto insurance provider for their requirements.

The best Tesla Model 3 auto insurance provider is USAA. However, only service members and their families are eligible for a policy. If you don't qualify for USAA coverage, State Farm is a great alternative and the second-best choice for Tesla Model 3 car insurance.

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How Much It Costs to Insure a Tesla Model 3 by Model Year

Due to value depreciation, older Tesla Model 3 models are typically less expensive than newer ones. The same is true for insurance; older cars are less costly to insure against accidents and damage.

The first Tesla Model 3 model has an average annual insurance cost of $1629. A 2020 Tesla Model 3 costs on average $1788 per year to insure.

For specific model years, various motor insurance providers provide more affordable solutions. For example, the cheapest insurance for a 2020 Tesla Model 3 is offered by USAA, at $1182 per year.

Choose your Tesla Model 3's year from the list below to compare prices. Depending on the model year, auto insurance costs can vary significantly.

Company 2020 model 2019 model 2018 model 2017 model
USAA $1182 $1191 $1359 $1329
State Farm $1470 $1449 $1419 $1329
Nationwide $1431 $1461 $1479 $1494
Progressive $1581 $1581 $1500 $1491
Allied $1731 $1719 $1710 $1710

How Expensive Is It to Insure a Tesla Model 3 Compared to Other Cars?

A Tesla Model 3 has more expensive insurance premiums than other car models. Compared to an average annual rate of $1440 across all models, the average cost of insurance for a Tesla Model 3 is $1731 annually. Despite this, a Tesla Model 3 is still less expensive to insure than more expensive car like the Tesla Model Y.

Tesla Model 3 vs. Similar Cars

If you're thinking about buying a Tesla Model 3, you might also look at a Jaguar I-Pace, Mercedes-Benz C-Class, or Volvo Polestar 2. The Model 3 is the second cheapest model to insure, on average, after the Model S. Insurance shouldn't be a big reason why you choose one of these cars over another.

2022 models Annual Average Premiums
Jaguar I-Pace $2652
Mercedes-Benz C-Class $2331
Volvo Polestar 2 $2931

How Much It Costs to Insure a Tesla Model 3 for 16- to 25-Year-Olds?

Young drivers are subjected to higher auto insurance premiums due to their lack of driving experience. For example, an 18-year-old driver's typical annual rate for a Tesla Model 3 is $5598. This is much more expensive than the $1731 average yearly insurance premium for a motorist 40 years of age with comparable coverage.

The auto insurance price for teenage drivers between the ages of 16 and 25 is shown below. Teenage drivers seeking a means to cut costs might want to think about joining their parents' insurance plan. Adding to a parent's insurance is substantially less expensive for teenagers than purchasing a separate policy, which can be very expensive.

Age Average Annual Rates
16 $7179
17 $6363
18 $5598
19 $4020
20 $3588

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How to Save Money on Tesla Model 3 Car Insurance

There are numerous strategies to reduce the price of your auto insurance. To name a few:

Compare car insurance quotes: You should compare auto insurance quotes from at least three different insurance providers because not all insurers charge the same rates for Model 3 insurance.

Look for Discounts: You can be eligible for more than a dozen widespread car insurance discounts.

Engage in telematics: If you drive safely, you may benefit from the usage-based auto insurance program offered by your insurer, which monitors and recognizes good driving habits.

Get the appropriate auto insurance coverage: Ensuring you have enough insurance coverage while avoiding paying too much for it is essential.

Keep your credit score high: Every state except California, Hawaii, Massachusetts, and Michigan allows insurers to include your credit-based insurance score when calculating your premium. However, not all businesses give this pricing element the same weight, which is why comparing prices is crucial.

Consider increasing your deductible: Generally, you will pay less in premiums the larger your auto insurance deductible is.

How to Get Tesla Model 3 Insurance with Way.com

You might believe that purchasing an electric vehicle will be a fantastic way to save money, given the sky-high price of gas. However, remember that EVs typically have higher insurance prices, reducing the fuel you save. Fortunately, the Way.com app will help you save money on your Tesla Model 3 auto insurance.

Using Way.com is the best approach to reduce your auto insurance costs without reducing your coverage. First, Way.com searches its comprehensive network of providers in less than a minute to discover the lowest prices on the range you need. Then, Way.com assists you in setting up your new coverage after you choose your favorite - all within the app.

A typical Way.com user saves more than $971 a year on auto insurance, and it's quick and straightforward.

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

Frequently Asked Questions

How much does it cost to insure Tesla Model 3?

The average annual cost of insurance for a Tesla Model 3 is $1731, according to data from Way.com.

Is it expensive to insure a Tesla Model 3? Why?

Due to their high maintenance costs, Teslas are more expensive to insure than many other cars, raising the collision insurance price. Your location, driving record, the quantity of coverage you select, and the Tesla model and trim you choose all affect the cost of your policy. Tesla Insurance, the company's insurance offering, is the least expensive insurer for Tesla vehicles. However, it's now only accessible in nine states, with some restrictions that not all drivers will appreciate.

How much is Tesla Model 3 insurance monthly?

The average monthly cost of insurance for a Tesla Model 3 is $144, according to data from Way.com.

Is Tesla expensive to own?

Yes, Tesla of any model is expensive to own.

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