Car insurance for Teslas

Factors that impact insurance costs

• Are Teslas expensive to insure?

  Yes, Teslas are expensive to insure. The high cost of Tesla insurance comes down to a few basic factors: as luxury electric vehicles that may require specialized parts and technicians for repair, Teslas have unusually high repair costs compared to standard cars, which raises the cost of insurance.

• Do Teslas have their own insurance?

  Tesla offers its own insurance product in 12 states, providing telematics-based insurance to eligible Tesla owners. In addition to traditional rating factors, Tesla insurance premiums are based on a monthly Safety Score that grades driver safety using measures like hard braking and following distance.

• Who has the cheapest insurance for Teslas?

  The cheapest car insurance for Tesla owners will be different for every driver based on location and personal rating factors like age, insurance history and driving record. On average, Bankrate found that Auto-Owners, Nationwide and Travelers tend to have below-average premiums for Tesla owners among top-rated national providers, but availability and pricing may vary.

• Which EV is cheapest to insure?

  Historically, affordable EVs like the Nissan Leaf and Chevrolet Bolt are among the cheapest electric vehicles to insure, at just $2,662 and $2,539, respectively, for full coverage. Among vehicles that bear the Tesla badge, the Model 3 sedan is typically the cheapest to insure, at an average annual full coverage rate of $3,515.

• Is Tesla considered a luxury car for insurance?

  Most Teslas fit into the luxury or “near luxury” category of vehicles, especially when it comes to insurance pricing. A high level of technology and comfort features, along with high-end finishes and steep starting prices, make Tesla vehicles more expensive not just to own, but to insure.

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates for our base profile are based on the following characteristics and full coverage limits with bundling and paperless billing discounts applied: 

40 year old

Single male and female driver

2023 Toyota Camry

Primary vehicle

Good credit score

Clean driving record

Commutes 5 days

Bodily injury liability

$100,000 per person
$300,000 per accident

Property damage liability

$50,000 per accident

Personal injury protection

$100,000 per accident

Uninsured motorist bodily injury

$100,000 per person
$300,000 per accident

Collision deductible

$500

Comprehensive deductible

$500

• Credit-based insurance scores:

  Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan. 

   

• Incidents:

  Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.

• Mileage:

  Rates were calculated by evaluating our base profile with the following differences in mileage: 2K, 5K, 12K (base), 15K and 20K.

• Model:

  Unless otherwise stated, rates are for 2023 vehicle models. For new vs used vehicles, we included the following year in our calculations: 2013.

• Age:

  Rates were calculated by evaluating our base profile with the ages 18-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations. For teen drivers, rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy. 

• Gender:

  The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

• Status:

  Rates were evaluated based on the following marital/family status: single (base), married, 40-year-old married man and woman. Marital status is not a rating factor in Hawaii and Massachusetts.