How much is Tesla insurance?
The average cost of insuring a Tesla is higher than what you would pay to insure a typical car, with the precise cost varying depending on the year, make, and model of the Tesla.
While the average cost of car insurance is $2,305, Tesla insurance for a Model 3 averages $2,914 yearly, based on Insurance.com's most recent data.
Average rates for other Tesla models are even higher:
- Tesla Model Y: $3,103
- Tesla Model X: $3,834
- Tesla Model S: $4,005
How much does insurance for a Tesla cost a month?
Based on the average annual rate of $4,005 a year, Tesla insurance costs about $334 a month for a Model S.
Tesla rates vary based on location, driving history and coverage levels.
Tesla car insurance costs by state and model
Louisiana is the most expensive state to insure a Tesla Model 3, at an average rate of $4,776 annually. Hawaii is the cheapest state to insure a Tesla Model 3, with an average rate of $1,925 annually. The table below shows the cost of insuring different Tesla models – including the Tesla Model 3.
Tesla Model 3 insurance cost by state
| State | Average Rate | Compared to National Average |
|---|---|---|
| Alaska | $2,258 | -$656 [-23%] |
| Alabama | $2,803 | -$111 [-4%] |
| Arkansas | $3,548 | $634 [22%] |
| Arizona | $2,745 | -$169 [-6%] |
| California | $3,181 | $267 [9%] |
| Colorado | $3,520 | $606 [21%] |
| Connecticut | $2,705 | -$209 [-7%] |
| Washington D.C. | $3,456 | $542 [19%] |
| Delaware | $3,285 | $371 [13%] |
| Florida | $3,391 | $477 [16%] |
| Georgia | $3,007 | $93 [3%] |
| Hawaii | $1,925 | -$989 [-34%] |
| Iowa | $2,774 | -$140 [-5%] |
| Idaho | $2,066 | -$848 [-29%] |
| Illinois | $2,525 | -$389 [-13%] |
| Indiana | $2,378 | -$536 [-18%] |
| Kansas | $3,004 | $90 [3%] |
| Kentucky | $3,603 | $689 [24%] |
| Louisiana | $4,776 | $1862 [64%] |
| Massachusetts | $3,477 | $563 [19%] |
| Maryland | $3,015 | $101 [3%] |
| Maine | $2,089 | -$825 [-28%] |
| Michigan | $3,639 | $725 [25%] |
| Minnesota | $2,856 | -$58 [-2%] |
| Missouri | $3,199 | $285 [10%] |
| Mississippi | $3,170 | $256 [9%] |
| Montana | $3,236 | $322 [11%] |
| North Carolina | $2,273 | -$641 [-22%] |
| North Dakota | $2,371 | -$543 [-19%] |
| Nebraska | $2,964 | $50 [2%] |
| New Hampshire | $2,391 | -$523 [-18%] |
| New Jersey | $3,007 | $93 [3%] |
| New Mexico | $2,831 | -$83 [-3%] |
| Nevada | $2,645 | -$269 [-9%] |
| New York | $2,179 | -$735 [-25%] |
| Ohio | $2,407 | -$507 [-17%] |
| Oklahoma | $2,527 | -$387 [-13%] |
| Oregon | $2,724 | -$190 [-7%] |
| Pennsylvania | $3,080 | $166 [6%] |
| Rhode Island | $3,779 | $865 [30%] |
| South Carolina | $2,989 | $75 [3%] |
| South Dakota | $3,365 | $451 [15%] |
| Tennessee | $3,399 | $485 [17%] |
| Texas | $3,419 | $505 [17%] |
| Utah | $2,526 | -$388 [-13%] |
| Virginia | $2,086 | -$828 [-28%] |
| Vermont | $2,433 | -$481 [-17%] |
| Washington | $2,278 | -$636 [-22%] |
| Wisconsin | $2,447 | -$467 [-16%] |
| West Virginia | $3,324 | $410 [14%] |
| Wyoming | $3,833 | $919 [32%] |
Tesla Model S insurance cost by state
| State | Average Rate | Compared to National Average |
|---|---|---|
| Alaska | $2,786 | -$1219 [-30%] |
| Alabama | $4,286 | $281 [7%] |
| Arkansas | $4,347 | $342 [9%] |
| Arizona | $3,685 | -$320 [-8%] |
| California | $4,838 | $833 [21%] |
| Colorado | $4,871 | $866 [22%] |
| Connecticut | $3,151 | -$854 [-21%] |
| Washington D.C. | $3,725 | -$280 [-7%] |
| Delaware | $3,588 | -$417 [-10%] |
| Florida | $5,188 | $1183 [30%] |
| Georgia | $4,162 | $157 [4%] |
| Hawaii | $2,383 | -$1622 [-40%] |
| Iowa | $3,334 | -$671 [-17%] |
| Idaho | $3,244 | -$761 [-19%] |
| Illinois | $3,986 | -$19 [0%] |
| Indiana | $3,680 | -$325 [-8%] |
| Kansas | $3,491 | -$514 [-13%] |
| Kentucky | $5,680 | $1675 [42%] |
| Louisiana | $6,231 | $2226 [56%] |
| Massachusetts | $4,104 | $99 [2%] |
| Maryland | $3,615 | -$390 [-10%] |
| Maine | $3,526 | -$479 [-12%] |
| Michigan | $4,734 | $729 [18%] |
| Minnesota | $4,038 | $33 [1%] |
| Missouri | $5,215 | $1210 [30%] |
| Mississippi | $4,118 | $113 [3%] |
| Montana | $3,959 | -$46 [-1%] |
| North Carolina | $3,018 | -$987 [-25%] |
| North Dakota | $4,070 | $65 [2%] |
| Nebraska | $4,932 | $927 [23%] |
| New Hampshire | $3,015 | -$990 [-25%] |
| New Jersey | $4,196 | $191 [5%] |
| New Mexico | $4,342 | $337 [8%] |
| Nevada | $2,999 | -$1006 [-25%] |
| New York | $4,126 | $121 [3%] |
| Ohio | $3,599 | -$406 [-10%] |
| Oklahoma | $4,182 | $177 [4%] |
| Oregon | $3,560 | -$445 [-11%] |
| Pennsylvania | $3,398 | -$607 [-15%] |
| Rhode Island | $4,358 | $353 [9%] |
| South Carolina | $3,750 | -$255 [-6%] |
| South Dakota | $5,698 | $1693 [42%] |
| Tennessee | $4,225 | $220 [5%] |
| Texas | $5,671 | $1666 [42%] |
| Utah | $3,756 | -$249 [-6%] |
| Virginia | $3,209 | -$796 [-20%] |
| Vermont | $3,904 | -$101 [-3%] |
| Washington | $2,864 | -$1141 [-28%] |
| Wisconsin | $3,047 | -$958 [-24%] |
| West Virginia | $4,071 | $66 [2%] |
| Wyoming | $4,389 | $384 [10%] |
Tesla Model X insurance cost by state
| State | Average Rate | Compared to National Average |
|---|---|---|
| Alaska | $2,684 | -$1150 [-30%] |
| Alabama | $3,729 | -$105 [-3%] |
| Arkansas | $4,271 | $437 [11%] |
| Arizona | $3,735 | -$99 [-3%] |
| California | $5,644 | $1810 [47%] |
| Colorado | $4,714 | $880 [23%] |
| Connecticut | $3,202 | -$632 [-16%] |
| Washington D.C. | $4,736 | $902 [24%] |
| Delaware | $3,639 | -$195 [-5%] |
| Florida | $5,361 | $1527 [40%] |
| Georgia | $3,908 | $74 [2%] |
| Hawaii | $2,442 | -$1392 [-36%] |
| Iowa | $3,364 | -$470 [-12%] |
| Idaho | $3,070 | -$764 [-20%] |
| Illinois | $3,375 | -$459 [-12%] |
| Indiana | $3,147 | -$687 [-18%] |
| Kansas | $3,699 | -$135 [-4%] |
| Kentucky | $5,931 | $2097 [55%] |
| Louisiana | $6,192 | $2358 [62%] |
| Massachusetts | $3,905 | $71 [2%] |
| Maryland | $3,711 | -$123 [-3%] |
| Maine | $2,823 | -$1011 [-26%] |
| Michigan | $4,819 | $985 [26%] |
| Minnesota | $3,687 | -$147 [-4%] |
| Missouri | $4,705 | $871 [23%] |
| Mississippi | $3,952 | $118 [3%] |
| Montana | $4,047 | $213 [6%] |
| North Carolina | $3,268 | -$566 [-15%] |
| North Dakota | $3,324 | -$510 [-13%] |
| Nebraska | $4,344 | $510 [13%] |
| New Hampshire | $3,081 | -$753 [-20%] |
| New Jersey | $3,786 | -$48 [-1%] |
| New Mexico | $4,103 | $269 [7%] |
| Nevada | $2,972 | -$862 [-22%] |
| New York | $4,346 | $512 [13%] |
| Ohio | $2,853 | -$981 [-26%] |
| Oklahoma | $3,372 | -$462 [-12%] |
| Oregon | $3,369 | -$465 [-12%] |
| Pennsylvania | $3,328 | -$506 [-13%] |
| Rhode Island | $4,044 | $210 [5%] |
| South Carolina | $3,714 | -$120 [-3%] |
| South Dakota | $4,968 | $1134 [30%] |
| Tennessee | $4,205 | $371 [10%] |
| Texas | $5,337 | $1503 [39%] |
| Utah | $3,241 | -$593 [-15%] |
| Virginia | $2,657 | -$1177 [-31%] |
| Vermont | $3,375 | -$459 [-12%] |
| Washington | $2,822 | -$1012 [-26%] |
| Wisconsin | $3,035 | -$799 [-21%] |
| West Virginia | $3,183 | -$651 [-17%] |
| Wyoming | $4,502 | $668 [17%] |
Tesla Model Y insurance cost by state
| State | Average Rate | Compared to National Average |
|---|---|---|
| Alaska | $2,320 | -$783 [-25%] |
| Alabama | $2,980 | -$123 [-4%] |
| Arkansas | $3,787 | $684 [22%] |
| Arizona | $2,950 | -$153 [-5%] |
| California | $3,844 | $741 [24%] |
| Colorado | $5,174 | $2071 [67%] |
| Connecticut | $2,951 | -$152 [-5%] |
| Washington D.C. | $3,772 | $669 [22%] |
| Delaware | $3,097 | -$6 [0%] |
| Florida | $3,496 | $393 [13%] |
| Georgia | $3,383 | $280 [9%] |
| Hawaii | $1,922 | -$1181 [-38%] |
| Iowa | $3,016 | -$87 [-3%] |
| Idaho | $2,251 | -$852 [-27%] |
| Illinois | $2,742 | -$361 [-12%] |
| Indiana | $2,540 | -$563 [-18%] |
| Kansas | $3,588 | $485 [16%] |
| Kentucky | $3,590 | $487 [16%] |
| Louisiana | $4,556 | $1453 [47%] |
| Massachusetts | $3,184 | $81 [3%] |
| Maryland | $3,080 | -$23 [-1%] |
| Maine | $2,176 | -$927 [-30%] |
| Michigan | $3,933 | $830 [27%] |
| Minnesota | $3,039 | -$64 [-2%] |
| Missouri | $3,609 | $506 [16%] |
| Mississippi | $3,066 | -$37 [-1%] |
| Montana | $3,649 | $546 [18%] |
| North Carolina | $2,548 | -$555 [-18%] |
| North Dakota | $2,672 | -$431 [-14%] |
| Nebraska | $3,514 | $411 [13%] |
| New Hampshire | $2,353 | -$750 [-24%] |
| New Jersey | $2,950 | -$153 [-5%] |
| New Mexico | $3,149 | $46 [1%] |
| Nevada | $2,722 | -$381 [-12%] |
| New York | $2,230 | -$873 [-28%] |
| Ohio | $2,369 | -$734 [-24%] |
| Oklahoma | $3,093 | -$10 [0%] |
| Oregon | $2,768 | -$335 [-11%] |
| Pennsylvania | $3,105 | $2 [0%] |
| Rhode Island | $3,843 | $740 [24%] |
| South Carolina | $2,886 | -$217 [-7%] |
| South Dakota | $3,684 | $581 [19%] |
| Tennessee | $3,632 | $529 [17%] |
| Texas | $3,533 | $430 [14%] |
| Utah | $2,662 | -$441 [-14%] |
| Virginia | $2,089 | -$1014 [-33%] |
| Vermont | $2,384 | -$719 [-23%] |
| Washington | $2,411 | -$692 [-22%] |
| Wisconsin | $2,699 | -$404 [-13%] |
| West Virginia | $2,851 | -$252 [-8%] |
| Wyoming | $4,211 | $1108 [36%] |
Cheapest car insurance companies for Teslas
The cheapest Tesla insurance companies are State Farm and Nationwide. Both of these insurers offer coverage for less than $2,000 annually.
After that, insurance costs jump substantially with other insurers. The next cheapest company – Geico – charges more than $3,000 a year for coverage.
Comparing car insurance rates is one of the most effective ways to get the best deal regardless of what type of car you drive.
Below, you’ll find average rates for the top car insurance companies for each Tesla model.
| Company | Average annual rate |
|---|---|
| State Farm | $1816 |
| Nationwide | $2414 |
| Progressive | $3281 |
| Geico | $3775 |
| Farmers | $4186 |
| Allstate | $7635 |
| Company | Average annual rate |
|---|
The Tesla car insurance program
Tesla began offering its own coverage in August 2019. The Tesla Insurance program is underwritten by State National Insurance and is only available in the following states at this time:
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
There are plans to expand Tesla auto insurance to other states as well.
Real-time driving behavior plays a big part in the cost of Tesla insurance premiums. According to the company, insurance for Tesla Model S and Tesla Model 3 could be 20% to 40% lower for the average driver — and as much as 60% less for safe drivers. However, there isn’t data available yet to confirm if this is the case.
The Tesla insurance program also provides coverages specific to the vehicle. You can add these offerings to your base coverage — for a cost.
Tesla insurance coverage options
In addition to providing all of the standard insurance coverages, Tesla offers:
- Autonomous vehicle owner coverage. Tesla is the only insurer to offer autonomous vehicle coverage. Tesla Insurance provides liability coverage for property damage or bodily injury if your car gets in an accident while operating in autonomous vehicle mode.
- Wall charger coverage. You'll have up to $3,000 available for loss or damage of the power charger as long as the damage isn't from a manufacturer defect or negligence.
- Electronic key replacement. Covers up to $500 per loss of your Tesla electronic keys. Coverage is limited to two claims per policy period.
- Auto loan/lease gap insurance. The coverage will pay for the difference between the vehicle value versus what's owed in car payments if your Tesla is a total loss after an accident.
- Cyber identity fraud coverage. A Tesla is one of the most technologically advanced vehicles. It's connected to a cyber network that may expose you to risk. This coverage pays up to $15,000 in digital identity fraud losses per occurrence and up to $30,000 per period if your information is compromised.
Why is Tesla insurance so expensive?
There are a few different reasons why the cost of Tesla insurance is higher than what you would pay to cover the average car:
- Teslas are expensive cars. The value of your car will affect how much you pay for car insurance. This is because your car’s value is how much the insurance company will have to pay if the car is totaled. The base price of a Tesla Model 3 in 2024 is $40,306. The prices of the other Tesla models are even higher:
- Model Y: $46,000
- Model S: $100,000
- Model X: $82,000
- They’re expensive to repair. Not all shops can fix a Tesla. As a result, those catering to Teslas can charge higher prices. The tech can be complex and only original Tesla parts are typically available. Additionally, specialized tools are needed for repairs. Insurance companies factor repair costs into your rates.
- They have unibody construction. Tesla is moving toward unibody construction -- larger aluminum panels to achieve better stability and safety. This means a larger part of the vehicle may need to be replaced in case of damage – even minor damage. The extra labor and larger pieces to repair can again raise the insurance price because the companies know the cost of repairs is high.
How to save on Tesla insurance
If you're looking to reduce your Tesla insurance cost, there are a few things you can do.
First, shop around. Be sure to get quotes from at least three insurance companies as rates vary quite a bit from company to company. For a Tesla Model Y Long Range, for example, Insurance.com found rates ranging from $1,889 at State Farm to $4,563 at Allstate.
And don’t forget to look into the Tesla Insurance program if it’s offered in your state.
You can also save in the same way you would with any car insurance policy by:
- Bundling your home and auto together.
- Asking about discounts, like good driver or paperless billing.
- Raising your deductible.
Methodology
Insurance.com commissioned Quadrant Data Solutions to provide rates for all Tesla models in all states and D.C. Rates were fielded based on a 40-year-old male driver with a full coverage policy at 100/300/50 and $500 deductibles. The content is updated for 2024.
Auto insurance FAQs
Is Tesla's insurance program cheaper than other insurers?
As with all insurance, it depends on a lot of factors. According to Tesla, safe drivers can save up to 60%, but how much you’ll pay depends on your base rate. And top-end savings are usually very difficult to achieve.
Does Tesla offer gap insurance?
Tesla does not currently offer gap insurance through its Tesla Insurance program. However, gap insurance is included if you lease a car through Tesla.
How much is insurance through Tesla?
Tesla doesn't publish its insurance rates. Insurance policies are priced based on driving habits recorded by built-in monitoring systems. That means good drivers can expect to pay less for Tesla insurance.
