- How much is Tesla insurance?
- Cheapest car insurance companies for Teslas
- Tesla car insurance costs by state
- Tesla car insurance cost by model
- Tesla car insurance cost by driver age
- Tesla car insurance trends by model
- Best car insurance for a Tesla
- The Tesla car insurance program
- Tesla insurance coverage options
- Why is Tesla insurance so expensive?
- Tesla repair costs: Why is it more expensive than other EVs?
- How to save on Tesla insurance
- Methodology
- Tesla car insurance: Frequently asked questions
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.
"Electric vehicles are often more expensive to insure due to the cost of repairs/parts/labor and availability of repair facilities," says Janet Ruiz, director of strategic communication at the Insurance Information Institute. Â
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. The Tesla model you buy affects your rates as well, with Tesla Model Y insurance costs averaging $3,103 a year, a Model X at $3,834 a year and a Model S at an average of $4,005 a year.
How much does insurance for a Tesla cost a month?Â
Based on the average annual rate of $2,195 a year, the average insurance for a Tesla Model 3 costs about $183 a month for a Model 3. Model 3 insurance costs are lower than other Tesla models.
Tesla rates vary based on location, driving history and coverage levels. They also vary by company, and you can save a lot by shopping around.
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. State Farm is cheapest for all models except the Model S, which is cheapest to insure at Nationwide.
After that, insurance costs jump substantially with other insurers. The next cheapest company – Geico – charges more than $3,000 a year for coverage.Â
Comparing car insurance rates is one of the most effective ways to get the best deal regardless of what type of car you drive.Â
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 |
|---|
Tesla car insurance costs by state
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 map below shows the cost of insuring different Tesla models – including the Tesla Model 3.Â
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%] |
Tesla car insurance cost by model
The Tesla model you choose will impact what you pay for car insurance. Generally, the more expensive the car the more expensive it will be to insure.
The rates below compare liability only coverage and full coverage rates for Tesla models.
| Tesla model | Liability-only (100/300/100) | Full coverage (100/300/100, $500 deductibles) |
|---|---|---|
| Model 3 | $828 | $2,914 |
| Model 3 Performance | $828 | $3,881 |
| Model S | $841 | $4,005 |
| Model S Plaid | $820 | $4,563 |
| Model X | $869 | $3,834 |
| Model X Plaid | $856 | $4,405 |
| Model Y Long Range | $820 | $3,103 |
| Model Y Performance | $806 | $3,150 |
Tesla car insurance cost by driver age
The age of the driver is one of the biggest factors affecting insurance rates. Younger drivers, especially teens, will see much higher rates that will go down as the driver gets older. Rates then climb again as you pass age 65.
| Company Group | Avg annual premium | Avg monthly premium |
|---|
Tesla car insurance trends by model
Rates generally increase for newer models, even of the same car. Newer models have the latest technology and have not yet seen much depreciation, so they tend to cost more to insure. Here's a look at how rates have changed over the years for two popular Tesla Models.
| Model | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| Model 3 Performance | $2,291 | $2,305 | $2,748 | $3,881 |
| Model Y Performance | $3,164 | $2,219 | $2,488 | $3,150 |
Best car insurance for a Tesla
To help you choose the best car insurance for your Tesla, we ranked top companies based on their rates for a Model 3, our survey of insurance customers for the 2024 best car insurance companies ranking, and third-party rankings. While price is important you also want a company you can trust, so we included AM Best financial stability rankings and National Association of Insurance Commissioners (NAIC) complaint ratios.
State Farm came out on top for insuring a Tesla with a perfect score of 5/5. Nationwide came in second. Tesla's proprietary insurance program is not included as data is not available.
| Company | AM Best rating | NAIC complaint ratio | Average annual premium (Model 3) | Survey score* | Insurance.com's score |
|---|---|---|---|---|---|
| State Farm | A++ | 0.52 | $2,069 | 4.44 | 5 |
| Nationwide | A | 0.66 | $2,227 | 4.12 | 4.57 |
| Progressive | A+ | 0.73 | $3,285 | 4.26 | 4.38 |
| Geico | A++ | 0.77 | $3,441 | 4.27 | 4.37 |
| Farmers | A | 0.77 | $3,999 | 4.32 | 4.13 |
| Allstate | A+ | 0.95 | $5,181 | 4.28 | 3.74 |
*Score based on our survey of insurance customers', rating companies based on customer service, recommendation to others, claims handling and renewal rate.
The Tesla car insurance program
Tesla car insurance directly from the company isn't ranked in our list of the best companies due to a lack of data; its pricing system means there are no average rates. Known as Tesla Real-Time Insurance, the plan was launched in August 2019. It's a usage-based program that uses a proprietary calculation called a "Safety Score" along with a few other factors to calculate premiums.
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
*In California, the Tesla Insurance program doesn't use the Safety Score due to state laws.
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.
According to Tesla, rates for the Tesla Real-Time Insurance Program are calculated based on the following:
- Your driving habits (based on monitoring your driving)
- How much you drive (mileage)
- The vehicle you drive
- Where you live
- The coverage you choose
- The number of vehicles you insure
Discounts available through Tesla insurance vary by state, but some of the available options include:
- Multi-car discount
- Defensive driving course/mature driver course
- Anti-theft device
- Tesla employee
- Safety devices
Tesla insurance coverage options
Like any other insurer, Tesla offers all coverages required by law as well as standard optional coverage:
- Liability coverage
- Uninsured/underinsured motorist coverage
- Personal injury protection and medical payments
- Comprehensive
- Collision
- Rental reimbursement
- Roadside assistance
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:Â $46,000
- Model S:Â $100,000
- Model X:Â $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.
Tesla repair costs: Why is it more expensive than other EVs?
Teslas are more expensive to repair than other EVs on the market, according to a Kelley Blue Book report. The average cost of repairs is $5,552 for Teslas compare to $4,474 for other EVs; the average repair cost for gas vehicles is $4,205. The factors behind this difference include:
- Tesla batteries are not modular, so they must be replaced completely if they are damaged even a little
- Tesla models change in design regularly, which makes it harder to find replacement parts
- Tesla is moving towards fewer large pieces for the body, which means a larger area needs replacement even if a small part of it is damaged.
How to save on Tesla insurance
If you're looking to reduce your Tesla insurance cost, there are a few things you can do.Â
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, and check out other usage-based programs.
"Telematics are offered by many insurance companies," Ruiz says., but notes that not all drivers will save that way. "Usage based programs tend to benefit low mileage driving."
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
ASK AN EXPERT We sought out questions from real people about accidents involving parked cars to provide expert answers. Have a question? Let us know.Expert answers to your questions
Leslie Kasperowicz
Executive editor.
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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 in 2024.
The best companies rating is based on Quadrant rates as well as our survey of insurance customers for the best car insurance companies of 2024 ranking. Additional data points included are AM Best financial stability ratings, where the top score is A++ and National Association of Insurance Commissioners (NAIC) complaint ratio, where a score below 1.00 is considered a below-average volume.
Tesla car insurance: Frequently asked questions
Is Tesla insurance expensive?
Tesla insurance is more expensive than the average car insurance cost at $2,914 a year compared to $2,304 a year.
Is Tesla's insurance program cheaper than other insurers?
It might be for some people. Tesla insurance is a usage-based program, so the actual cost will depend on your driving habits. According to Tesla, safe drivers can save up to 60%, but how much you’ll pay depends on your base rate, which is based on traditional factors like your age and driving record.
Does Tesla offer gap insurance?
Yes, Tesla offers gap insurance through the Tesla Insurance program. Additionally, 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.
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