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Cost of Tesla car insurance

  • Car Insurance Tips
  • Xavier Sabastian
  • 5 minutes

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One of the concerns we hear from certain critics/skeptics at Way.com is: Sure, electricity is less expensive than petrol, but what about insurance? Some people believe this issue is simply a gorilla in the closet. We’ve seen a lot of comments on social media citing ridiculous reasons why Tesla car insurance is so expensive.

Let’s be clear here: Teslas don’t catch fire, and they don’t short-circuit in the rain.

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Basic Tesla insurance tidbits

According to our study, the average annual cost of auto insurance for a Tesla is $4554. The cost of your policy is determined by the model and trim you select. The other factors include your location, driving history, and the amount of coverage you want. Get in touch with the car insurance companies that sell Tesla insurance to get the exact rates.

Nonetheless, a Tesla could be one of the most cost-effective cars available right now. It is entirely powered by electricity, saving you hundreds to thousands of dollars in gas costs. It’s also one of the safest cars. A dozen airbags, video sensors on the bumpers, and other safety features make Teslas “the safest cars in the world”. You’d think Tesla car insurance would be inexpensive due to the high safety ratings and quality. However, the Tesla insurance premium is higher than usual. There are, fortunately, ways to save money on car insurance.

The following are some of the reasons why Tesla insurance is more expensive than average car insurance:

Tesla car insurance cost

Tesla insurance costs vary by model, but owners should consider the influence of different trim levels on auto insurance premiums while selecting their car. Not all insurers provide different prices based on the trim level. However, the difference in car cost, acceleration, and other vehicle features translate into differing prices for car insurance companies who take this into account.

Stephen Colbert GIF by The Late Show With Stephen Colbert


Insurance for the Tesla Model 3, which starts at $39990, is less expensive than insurance for the Tesla Model S, which starts at $85000. 

Tesla is an expensive car and thus the insurance is higher

Car insurance companies care about the value of a car. If you have the following coverages: comprehensive and collision (which is compulsory for any new car), your insurer may have to pay out the car’s total value if it’s determined to be a total loss. Because the insurance would have to pay out more if you totaled your car for $40000 or even $85000, you’ll pay more for these protection coverages than someone with a car worth $25000.

Repairing Tesla is more expensive

Fewer repair shops mean those who do cater to Teslas can demand higher pricing. The technology is complicated. Repairs also necessitate the use of specialist tools. Tesla’s bells and whistles of technology may help with safety. But that technology comes at a price!

Tesla insurance is higher than normal insurance

Due to their high repair costs, Teslas are more expensive to insure than many other luxury cars, which raises the cost of accident coverage.

Sensitive areas of a Tesla model

Someone tapping your regular car’s bumper may be a minor annoyance, but if it happens to your Tesla, it might be a significant problem. If someone smashes your bumper, the camera sensors on the bumper can be destroyed. Even if it’s just a minor fender accident, calibration may require the device to function correctly.¬†As a result, colliding with a sign might result in a nearly $7,00 repair charge.

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Construction of Tesla with a single body

Tesla is pursuing unibody architecture, which entails larger metal panels for improved stability and safety. Because insurance companies are aware of the high cost of repairs, more effort, and oversized items may increase insurance prices.


The car you drive and the kind of insurance you purchase are two of the many rating elements used by car insurance companies. Others include your age, driving experience, driving record, and claims history. However, you live in the critical component used as a basic quote to construct and adjust up or down, depending on your driving profile.

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Tesla insurance is more expensive in some states than in others. This is because the state and city where you live impact how much you pay for insurance. Insurance companies consider the cost and frequency of claims, as well as natural disasters in your area, among other things, when determining your rate. 

Is Tesla car insurance a deal-breaker because of the higher insurance costs? Most likely not. Surprisingly, Tesla’s newest model, the Model Y, is the most affordable to insure. While it isn’t the most affordable Tesla model, it is a larger crossover than the Model 3. And we discovered that this car type has the cheapest insurance rates. According to our analysis, the Model X, Tesla’s high-end SUV, is the most expensive Tesla to insure.

how much is tesla insurance

Here’s more info on top-rated airport parking, the best parking spots in your city, the most affordable insurance for your car, and top-rated car washes near you.


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