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.
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Update 2023: Tesla has started selling insurance to drivers in Maryland, Minnesota, Nevada and Utah, which means you can get Tesla Insurance in 12 states. Tesla Insurance is expected to be available in Florida soon.
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?
The average cost to insure a new Tesla is $3,947 per year. The newest Tesla, the Model Y, is the cheapest model to insure.
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Model | Monthly cost |
|---|---|
| Model 3 | $282 |
| Model S | $413 |
| Model X | $356 |
| Model Y | $255 |
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
Company | Monthly rate | |
|---|---|---|
| Tesla Insurance | $169 |
| State Farm | $219 |
| USAA | $243 |
| Nationwide | $300 |
| Progressive | $496 |
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 year | Trim | Monthly rate |
|---|---|---|
| 2022 | Standard Plus | $282 |
| 2022 | Long Range | $301 |
| 2022 | Performance | $313 |
| 2021 | Standard Plus | $277 |
| 2020 | Standard Range Pl | $267 |
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 year | Trim | Monthly rate |
|---|---|---|
| 2022 | Long Range | $255 |
| 2022 | Performance | $279 |
| 2021 | Standard Plus | $236 |
| 2020 | Long Range | $253 |
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 year | Trim | Monthly rate |
|---|---|---|
| 2022 | Long Range | $413 |
| 2022 | Plaid | $405 |
| 2021 | Long Range | $405 |
| 2020 | Long Range | $395 |
| 2019 | — | $383 |
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
Model year | Trim | Monthly rate |
|---|---|---|
| 2022 | Long Range | $356 |
| 2022 | Plaid | $356 |
| 2021 | — | $318 |
| 2020 | Long Range | $337 |
| 2019 | — | $323 |
Tesla Insurance program review
Tesla has begun selling insurance to customers in Maryland, Minnesota, Nevada and Utah. This brings their total area to 12 states.
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.
Rates in every state except California are primarily set using Tesla's own "Safety Score," with little to no consideration for tickets.
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:
- Accident history
- Tickets (such as speeding)
- Claims
- Credit
- Age
- Gender
- Marital status
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.
- Arizona
- California*
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Extra Tesla coverage options
You can add the Autonomous Vehicle Protection Package to cover:
- Autonomous vehicle owner liability
- Electronic key replacement
- Cyber identity fraud expenses
- Wall charger coverage
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:
- Forward collision warnings (per 1,000 miles)
- Hard braking (percent of time)
- Aggressive turning (percent of time)
- Unsafe following time (percent of time)
- Forced autopilot disengagement (number of instances)
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
Safety Score | Monthly rate |
Difference from average
|
|---|---|---|
| 100 | $74 | -25% |
| 95-99 | $87 | -12% |
| 90-94 | $91 | -8% |
| 85-89 | $95 | -4% |
| 80-84 | $99 | — |
Rates are for a 2022 Tesla Model 3 in Texas.
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. That's 42% less than the state average, and $804 cheaper than the second-best option, Kemper.
Average full coverage Tesla quotes in CA
Company | Monthly rate | |
|---|---|---|
|
| Tesla Insurance | $187 |
| Kemper | $254 |
| Geico | $268 |
|
| State Farm | $320 |
| Farmers | $327 |
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.
- Teslas can only be repaired at Tesla-approved body repair shops. The training and equipment to become qualified means much higher costs for drivers.
- Electric cars are more expensive to repair and insure because they have 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. 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
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 12 states.
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.