How Much Does Tesla Insurance Cost? Rates by Model

Teslas are more expensive to insure than many other cars because of their high repair costs, which increase the price of collision coverage. Your car insurance rate 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 policy. However, it's only currently available in 12 states.

How much is Tesla insurance?

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The cost of Tesla insurance varies a lot based on which insurance company you choose, as well the model and trim.

While it's not the most affordable Tesla to buy, the Model Y is a crossover that's slightly larger than the cheaper Model 3. Crossover cars tend to have the cheapest insurance rates.

The most expensive Tesla to insure is the Model S, at an average cost of $4,956 per year for the base model.

Which companies offer the cheapest insurance for a Tesla?

Compared to the largest insurers, Tesla Insurance has the cheapest auto insurance rates to insure a Tesla in Texas, at an average rate of $2,030 per year for a new Tesla. That's 49% less than average.

State Farm is the second-cheapest company and the most affordable among major insurers, with an average annual rate of $2,626.

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Average full coverage car insurance quotes for Teslas

To make sure you get the most affordable Tesla insurance rates, get free online quotes to compare car insurance rates from different companies.

Tesla insurance: rates by model

While the average cost to insure a new Tesla vehicle is $3,947 per year, the price varies a lot by model. The cheapest Tesla to insure is the Model Y, which has an average rate of $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.

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

Average cost of car insurance for Tesla Model 3

Model Y

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

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

Average cost of car insurance for Tesla Model Y

Model S

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

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

Average cost of car insurance for Tesla Model S

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.

Average cost of car insurance for Tesla Model X

Tesla Insurance program review

Tesla's insurance program is only available to existing Tesla owners.

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

Tesla drivers with high safety scores can see even more savings. A perfect score of 100 typically saves you 37% off the base rate.

Unlike most insurance companies, Tesla does not consider any of the following factors when setting car insurance rates:

The biggest drawback to Tesla Insurance is that it only offers insurance coverage to some non-Tesla cars.

So if you're a multi-car household, you may have to use two different car insurance companies to cover both cars. This requires signing up for multiple insurance policies and means you can't get a multi-car discount.

Where is Tesla Insurance available?

Tesla's car insurance is available exclusively to Tesla owners in 12 states.

Extra Tesla coverage options

You can add the Autonomous Vehicle Protection Package to cover:

Tesla Insurance rates by Safety Score

While Tesla's insurance rates are very affordable for nearly all drivers, your rate drops even more if you have a high Safety Score.

A perfect score of 100 will get you an annual rate of just $887 on a new Model 3. That's shockingly low compared to the overall average of $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.

How does the Tesla Safety Score work?

Broadly speaking, Tesla's Safety Score works much like other telematics car insurance such as Progressive Snapshot. The Tesla app monitors your driving habits and assigns a score between 0 and 100, with most drivers getting an 80 or above.

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

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

Average monthly Tesla Insurance rates by Safety Score

Tesla Insurance rates in California

Tesla Insurance in California works differently than Tesla Insurance in other states because the 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. That's 45% less than the state average, and $972 per year cheaper than the second-best option, Geico.

Average full coverage Tesla quotes in CA

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 or electric vehicles.

That's why the cost to repair a Tesla, even for a minor fender bender, can easily reach several thousand dollars. As the cars include more custom parts, safety features 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

Methodology

All car insurance quotes are for an annual 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.