Tesla Car Insurance Review

Interested in affordable car insurance for your Tesla? Tesla Insurance offers comprehensive coverage and claims management support that’s often 20% to 30% lower than other car insurance providers. If you’re a California resident, you’re in luck. You can purchase Tesla insurance for your Model S, X, 3 and Roadster today. Currently, Tesla only offers this insurance to California residents, but they have plans to expand to other states in the near future. The cost of Tesla insurance varies depending on factors like model, year, your driving record, etc. However, the average cost to insure a Tesla is just below $1,000 per year.

The Tesla Insurance Program

Because Tesla understands their vehicle technology, safety and repair costs, they’re able to eliminate fees taken by traditional insurance carriers. Insurance prices reflect Tesla’s safety and advanced driver assistance features, which allows drivers to acquire a reduced insurance cost compared to other providers. Only California residents currently benefit from this insurance, but Tesla plans to expand their offerings across the country to make Tesla insurance more affordable. Tesla offers drivers traditional discounts like good driver discounts and multi-driver discounts but also offers exclusive Tesla discounts for features like autopilot, anti-lock brakes, stability control, an anti-theft system, and more.

Average cost of insuring a Tesla

The average cost of insuring your Tesla will vary depending on insurance carrier, model, your driving record, and more. Here’s is how the average monthly insurance rate for a Tesla S through Tesla’s Insurance program compares to other popular insurance companies:

Company Tesla Model S Monthly Insurance Rate
Progressive $539
Geico $545
State Farm $554
Tesla $436

This chart accurately reflects Tesla’s claim to be 20-30% more affordable compared to other car insurance providers. Because Tesla’s technology continues to improve and become more complex, maintenance and repair fees increase, which makes the cost to repair a Tesla after a collision more expensive compared to other automobiles. Because of this, Tesla aims to make insurance more affordable and easily accessible for their customers.

Average cost of Tesla insurance by model

Tesla Model Average annual insurance cost
Model 3 $1,913
Model X $2,473
Model S $2,963

Why are Teslas so expensive to insure?

The average cost of insurance for Tesla’s different models is relatively high, mainly due to Tesla’s high repair and maintenance costs. There’s a limited number of Tesla-approved body repair shops, and the aluminium body of some of the Tesla models is more expensive compared to traditional steel frames. As Tesla technology continues to grow and become more advanced, repairs become more complicated, time consuming, and expensive. For all of these reasons, even a fender bender can become incredibly expensive for a Tesla driver compared to other automobiles.

Frequently Asked Questions

What is the cheapest and most expensive Tesla model to insure?

The most inexpensive Tesla model to insure is the Model 3 at an average of $1,913 per year. The most expensive model to insure is the Model S 90, Tesla’s highest-end car, at an average of $2,693 per year.

How can I save money on my Tesla insurance?

Whether you’re a California resident purchasing Tesla’s car insurance, or purchasing insurance through another provider, make sure that you’re receiving every discount you’re entitled to. This includes the traditional discounts like good-driver, multi-driver, etc and Tesla specific discounts like stability control and an anti-theft system.

How much will my Tesla insurance policy cost?

You can expect to pay somewhere between $1,900 and $3,000 a year. The price varies on the individual, the model, their driving record, what discounts you qualify for, and other factors. In some instances, you may save more money by bundling your car insurance with your homeowners insurance company. That being said, it’s important to do your research and consider all of your options before deciding on the insurance company that’s right for you as a Tesla owner.

How is Tesla insurance more affordable than other insurance providers?

Because Tesla better understands their vehicles, their technology, and their repair costs, the company is able to eliminate certain fees that other providers include in your traditional yearly insurance fee. In addition, Tesla owners are entitled to Tesla-specific discounts if you are insured through the company. For example, Tesla takes their active safety and advanced driver assistance features into account when pricing policies, which also brings down the price.

How do I purchase Tesla insurance?

Current Tesla owners who live in California can purchase a policy within minutes on the Tesla website. If you’re a brand new Tesla owner, you can request a quote prior to delivery once a VIN number is assigned to your Tesla account.

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