How Much Does Tesla Insurance Cost? Rates by Model

How Much Does Tesla Insurance Cost? Rates by Model

The average cost of car insurance for a Tesla is $3,947 per year, or $329 per month.

Find Cheap Tesla Insurance Quotes in Your Area

Currently insured?

Update July 2022: Tesla has begun selling insurance to drivers in Maryland, Nevada and Utah, bringing their total footprint to eleven states. Tesla has said it intends to offer insurance in 45 states by the end of 2022.

{"backgroundColor":"butter","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cstrong\u003EUpdate July 2022\u003C\/strong\u003E: Tesla has begun selling insurance to drivers in Maryland, Nevada and Utah, bringing their total footprint to \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"eleven states\" href=\"#states\"\u003Eeleven states\u003C\/a\u003E\u003C\/span\u003E. Tesla has said it intends to offer insurance in 45 states by the end of 2022.\n","padding":"normal"}

Teslas are more expensive to insure than many other cars because of their high repair costs, which increases the cost of collision coverage. The price of your policy depends on the Tesla model and trim you choose, your location and driving history and the amount of coverage you choose.

The cheapest insurer for Tesla vehicles is Tesla Insurance, Tesla's own insurance product. However, it's only currently available in nine states, and it has some limitations that not every driver will love.

How much does insurance cost for a Tesla?

The average cost to insure a new Tesla is $3,947 per year. However, the price varies significantly based on which insurer you choose, as well the model you own.

Average Cost of Insurance on a Tesla by Model

Find Cheap Tesla Insurance Quotes in Your Area

Currently insured?

The newest Tesla model, the Model Y, is the least expensive model to insure. While it's not the most affordable car Tesla makes, it is a crossover that's slightly larger than the cheaper Model 3. And we've found that crossover-style vehicles tend to have the lowest insurance prices.

The most expensive Tesla to insure is the Model S, at an average cost of $4,956 per year for the base model. Below, you can see an insurance cost comparison for each new Tesla model for a sample driver in Texas, based on quotes from five top insurers (including Tesla's own offering).

Which companies offer the cheapest insurance for a Tesla?

In our comparison of the largest insurers, Tesla Insurance offered the cheapest auto insurance rates to insure a Tesla in Texas, at an average rate of $2,030 per year for a new Tesla — 48% less than average. State Farm was the second-cheapest option and the most affordable among nationally-available insurers, with an average price of $2,626.

Bar graph showing average rates across all 2022 Tesla cars

Find Cheap Auto Insurance Quotes in Your Area

Currently insured?
Insurer
Annual rate
Tesla logo
Tesla Insurance$2,030
State Farm logo
State Farm$2,626
USAA logo
USAA$2,910
Nationwide logo
Nationwide$3,597
Progressive logo
Progressive$5,952
Show All Rows

In order to make sure you get the most affordable Tesla insurance rates, we recommend comparing quotes from at least three different insurers.

Tesla insurance: Rates by model

While the average cost to insure a new Tesla vehicle is $3,732 per year, the price varies significantly by model. The cheapest Tesla to insure is the Model Y, which has a typical insurance rate of just $3,057 per year.

Model 3

The Model 3 sedan is Tesla's least expensive model to buy, currently starting at $44,990 before incentives or add-ons. But the cost to insure is still fairly expensive, at $3,386 per year for the newest base model.

Opting for either of the more expensive Model 3 variants, which have larger batteries and higher speeds, can add a few hundred dollars to your insurance bill.

Model Year
Variant
Average cost
2022Standard Plus$3,386
2022Long Range$3,608
2022Performance$3,752
2021Standard Plus$3,328
2020Standard Range Pl$3,199
2019$3,164
2018Long Range$3,168
2017$3,076

Model Y

The Model Y is the cheapest Tesla to insure, with an average rate of just $3,057 per year for the base model. That's 13% less than the average rate across all new Teslas.

The Model Y is a compact crossover vehicle, and these types of cars tend to have the most affordable rates compared to smaller sedans, as well as larger, more expensive full-size SUVs.

Model Year
Variant
Average cost
2022Long Range$3,057
2022Performance$3,348
2021Standard Plus$2,832
2020Long Range$3,030

Model S

Tesla's first mass-produced vehicle, the Model S, is also its most expensive to insure, with a typical insurance price of $4,956 per year. The Model S starts at $94,990 without discounts or add-ons.

Surprisingly, the high-end "Plaid Mode" model S, with a top speed of 175 MPH, is less expensive to insure than the base model — though only by $93 per year.

Model Year
Variant
Average cost
2022Long Range$4,956
2022Plaid$4,863
2021Long Range$4,859
2020Long Range$4,742
2019$4,592
201860$4,166
201760$4,057

Model X

The Model X, Tesla's high-end full-size SUV, costs an average of $4,275 per year to insure. That's $759 more than the typical price across all models.

The cheapest insurer for the Model X is Tesla's own insurance program, which offers a typical rate of $2,095 per year.

Model Year
Variant
Average cost
2022Long Range$4,275
2022Plaid$4,275
2021$3,810
2020Long Range$4,045
2019$3,874
201875D$3,651
201790D$3,812

Tesla Insurance program review

Update July 2022: Tesla has begun selling insurance to customers in Maryland, Nevada and Utah. This brings their total footprint to eleven states. Rates in every state except California are primarily set using its proprietary "Safety Score," with little to no consideration for speeding tickets or other infractions. Tesla has said it intends to offer insurance in 45 states by the end of 2022.

{"backgroundColor":"butter","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cstrong\u003EUpdate July 2022\u003C\/strong\u003E: Tesla has begun selling insurance to customers in Maryland, Nevada and Utah. This brings their total footprint to eleven states. Rates in every state except California are primarily set using its proprietary \"Safety Score,\" with little to no consideration for speeding tickets or other infractions. Tesla has said it intends to offer insurance in 45 states by the end of 2022.\n","padding":"normal"}

Tesla's own insurance program, currently available in nine states, is only available to existing Tesla owners.

Tesla's own insurance rates are substantially cheaper than competing insurers. The typical rate is $2,030 per year across all new Tesla models — that's 49% less than the average rate.

In every state except California where it’s available, Tesla Insurance uses your car's Safety Score as the main factor to evaluate your driving risk, and ignores many of the criteria nearly all other insurers use to determine your rates.

Drivers with high safety scores can see even more savings — a perfect 100 gets you a discount of 37% compared to the base rate.

Tesla does not consider any of the following when setting car insurance rates:

  • Accident history
  • Tickets (such as speeding)
  • Claims
  • Credit
  • Age
  • Gender
  • Marital status

The biggest drawback to Tesla Insurance is that it only offers coverage to some non-Tesla cars. So if you're a multicar household, you may have to maintain two separate car insurance policies, which requires signing up for multiple insurance policies and sacrificing a possible bundle discount in the process.

Where is Tesla insurance available?

Tesla's own insurance coverage is available exclusively to Tesla owners in eleven states. Tesla has stated it intends to sell insurance in 45 states by the end of 2022.

  • Arizona
  • California*
  • Colorado
  • Illinois
  • Maryland
  • Nevada
  • Ohio
  • Oregon
  • Texas
  • Utah
  • Virginia

*Tesla insurance in California doesn't offer the same unique features as those available in other states.

Tesla Insurance rates by Safety Score

While Tesla's rates for insurance are very affordable for nearly all drivers, your price drops even more if you can maintain a high Safety Score. A perfect score of 100 will get you a rate of just $887 on a new Model 3 — a shockingly affordable price (the average overall was $3,386 per year).

Tesla adjusts rates according to five-point Safety Score increments. So if your average score falls between 95 and 99, your rate will increase to $1,040 per year.

Tesla Insurance rates by safety score

How does the Tesla Safety Score work?

Broadly speaking, Tesla's Safety Score works much like other telematic car insurance, similar to Progressive Snapshot. It monitors your driving habits and assigns a score between 0 and 100, with most drivers receiving an 80 or above.

Unlike many other telematics systems, Tesla is particular about what causes your score to go down:

  • Forward collision warnings (per 1,000 miles)
  • Hard braking (% of time)
  • Aggressive turning (% of time)
  • Unsafe following time (% of time)
  • Forced autopilot disengagement (# of instances)

Your Safety Score is calculated daily, and a weighted average based on driving time is calculated over the last 30 days.

Safety Score range
Annual rate
% change from 80 Safety Score
100$887-25%
95-99$1,040-12%
90-94$1,093-8%
85-89$1,139-4%
80-84$1,186
Show All Rows

Rates are for a 2022 Tesla Model 3 in Texas. Tesla has stated it expects most drivers to receive a Safety Score of 80 or above, so we used that as our baseline when calculating premium impact.

Tesla insurance rates in California

Tesla insurance in California works differently than in other states because its California rates aren't based on your Safety Score. However, Tesla's own insurance program is still the most affordable option available in the Golden State. Its average price across all 2022 Tesla models is $2,246 per year — 42% less than the state average, and $805 cheaper than the second-best option, Kemper Insurance.

Insurer
Annual rate
Tesla Insurance$2,246
Kemper$3,051
Geico$3,220
State Farm$3,845
Farmers$3,921
California average$3,933
Mercury$4,363
Allstate$5,365
AAA SoCal$5,452

Why are Teslas so expensive to insure?

Tesla cars are expensive to insure because they are expensive to buy and repair. Teslas have especially high collision coverage costs due to their high repair and maintenance costs, which are more expensive than other luxury vehicles or EVs.

  • Teslas can only be repaired at Tesla-approved body repair shops. The training and equipment to become qualified means significantly higher costs.
  • Electric cars are more expensive to repair and insure because they feature more expensive equipment and technology.
  • Teslas have a higher battery range than other EVs, so they tend to rack up more miles. More driving time means higher crash risks.
  • The Model S aluminum frame is more expensive and difficult to repair than a steel frame.

That's why the cost to repair a Tesla, even for a minor fender bender, can easily reach several thousand dollars. And as the cars integrate more custom parts and technology, the cost per collision may continue to rise.

Though autopilot technology built into Tesla cars aims to reduce crashes, quotes for a Tesla also factor in the cost of replacing all that high-end tech after a crash.

Frequently asked questions

How much does insurance cost for a Tesla Model 3?

The average cost to insure a Model 3 is $3,386 per year for full coverage. It's cheaper to insure than a Model S or Model X, but more expensive than the Model Y ($3,057).

Is Tesla's insurance program cheaper than other insurers?

Tesla's in-house insurance program is very affordable compared to other insurers — it's the cheapest option in Texas. However, it's currently only available in nine states.

Methodology

All car insurance quotes are for a yearlong full coverage policy for a 30-year-old driver with good credit. Unless otherwise stated, rates are statewide averages in Texas.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.