Car insurance for Teslas

How much does it cost to insure a Tesla?

Bankrate’s analysis of quoted annual premiums from Quadrant Information Services shows that average Tesla car insurance costs are higher than the average cost of full coverage car insurance in the U.S. For example, insurance rates for the Tesla Model 3 — one of the nation’s most popular electric sedans — average around 44 percent more than rates for the gas-powered Toyota Camry sedan. Even among EVs, Teslas tend to carry higher insurance prices thanks to the brand’s luxury status. Full coverage for the Model Y SUV costs about 28 percent more than insurance for the popular Chevy Bolt hatchback.

Among the many factors that impact car insurance rates, the make and model of the vehicle you drive affect your premium because different models have different crash statistics, repair costs and safety features.

• Crash rate stats per make: Teslas have much lower crash rates than other vehicles. As of the second quarter of 2024, Tesla reported only one accident for every 6.88 million miles driven in which drivers were using Tesla’s Autopilot technology and one for every 1.45 million miles driven among drivers who were not using Autopilot. In contrast, the National Highway Traffic Safety Administration (NHTSA) reports the U.S. average is one accident per 670,000 miles. These low crash rates may help bring down car insurance rates for Teslas.
• Price of parts: Teslas come with high-tech parts that can be costly to repair after an accident, which may contribute to the make's high average insurance costs. Additionally, Tesla’s parts are unique to the brand and may require more time to source, further contributing to higher costs.
• Safety features: Teslas come equipped with top-of-the-line safety features, including automatic emergency braking, forward collision warning, blind spot collision warning and lane departure avoidance. These systems may bring down the cost of insurance as they are designed to prevent accidents and might earn you a safety discount from some insurers. On the other hand, complex electrical systems can be difficult and costly to repair, which may drive up insurance costs.

Car insurance for a Tesla by model

Teslas are luxury vehicles with proprietary parts that correspond to high average insurance costs. However, some models may be less costly to insure than others. The following average rates may be useful for comparison, but keep in mind that individual factors specific to you and your vehicle influence the price you pay for insurance, so how much Tesla insurance costs for you will likely vary from what is listed below.

Car insurance for Tesla Model 3

Tesla Model 3 drivers pay an average of 44 percent more than the national average for full coverage insurance. The Model 3 is the cheapest Tesla available on the market today, but its insurance costs are slightly higher than the pricier Model Y.

Car insurance for Tesla Model Y

The Tesla Model Y SUV is the next tier up in the Tesla lineup, as reflected by its higher manufacturer's suggested retail price (MSRP). Drivers may find its larger cabin space and added features attractive — but the Model Y could demand higher repair costs, as well.

Car insurance for Tesla Model X

The Tesla Model X has the most expensive base price of any Tesla Model, with steep insurance costs to match. This is likely largely due to the model’s beefier engine and faster acceleration compared to other Teslas. The Model X also has a larger cabin size and luxury features like its falcon wing doors.

Car insurance for Tesla Model S

The Model S is Tesla’s most performance-oriented model — at least until the Roadster makes its return for the 2026 model year. Our premium data is derived from the Model S Performance trim, known as the Model S Plaid on post-2020 models. Because this Tesla edges into supercar territory with motors capable of 1,020 horsepower and a zero-to-60 time of under 3 seconds, insurance companies are likely to assign higher rates to the Model S.

Cheapest car insurance companies for Teslas

Teslas cost more on average to insure, but comparing quotes from different providers may help you find a more affordable rate. To help simplify your car insurance search, Bankrate’s team analyzed rates across the largest providers by market share to identify the cheapest car insurance carriers for Tesla owners. We then narrowed our focus to present only the best car insurance companies among the most affordable carriers on the market, based on factors such as customer satisfaction, financial strength and national availability, which are further assessed in our provider reviews. Nationwide, USAA, Amica, Auto-Owners and Erie offer some of the cheapest Tesla car insurance rates based on our research. Keep in mind that your premiums will differ based on your individual characteristics.

Average annual premium for full coverage by model

Tesla features that impact insurance costs

Some car insurance companies may offer discounted rates for certain Tesla safety features. However, Tesla’s high-tech systems may require expensive parts as well as specialized labor to repair, driving up the cost of coverage. The following features may have an impact on your Tesla insurance rates.

• Sentry Mode: This feature activates cameras that start recording if someone stands next to your vehicle for too long. Sentry Mode’s cameras may help deter thieves, lowering your insurance costs.
• Bioweapon Defense Mode: A HEPA filtration system filters toxins out of the car, which could help keep you safe during wildfires or other unsafe air conditions. However, this technology may be expensive to repair and could drive up Tesla insurance rates.
• Advanced driver assistance: Tesla’s advanced driver assistance technology includes Autopilot, a set of safety features that reduce the effort required to drive through functions like traffic-aware cruise control, lane changing assistance and other features. These tools may reduce the risk of an accident, thus lowering insurance rates, but it’s important to understand how the technology works and employ it responsibly.
• Cabin camera: As a means of helping drivers stay alert while in Autopilot mode, this camera — located above the rearview mirror if equipped — can determine driver inattentiveness and sound an audible alert to remind you to keep your eyes on the road.

What is Tesla Insurance?

Tesla now offers its own Tesla Insurance for drivers who want to purchase their car insurance through the company instead of a third-party insurance carrier. Unlike a traditional car insurance policy, Tesla Insurance does not look at individual factors like credit, age, gender and marital status. It also doesn’t consider previous accidents or violations. Instead, the premium is based on coverage selections and personal details like your home address, annual mileage and your Tesla’s Safety Score grade.

The Safety Score is based on real-time driving habits and behaviors, including five Safety Factors measured by the Tesla vehicle while driving. The Safety Score is assessed on a 100-point scale, with safer driving resulting in higher scores. A unique feature of Tesla Insurance is that the premium may change every 30 days based on the previous month’s driving performance, so it’s important to understand that you aren’t locked into a rate the way you would be with a typical car insurance policy that has a six-month or one-year term. Interested Tesla owners can start a quote directly in their Tesla mobile app.

Tesla Insurance is currently available in 12 states, including:

• Arizona
• California (real-time driving Safety Score feature is not available)
• Colorado
• Illinois
• Maryland
• Minnesota
• Nevada
• Ohio
• Oregon
• Texas
• Utah
• Virginia

All Tesla Insurance claims are handled directly through the dedicated mobile app, where policyholders can even see repair estimates and schedule a repair appointment with a few clicks. Tesla offers two centers for repairs: Tesla Service Center for general repairs and Tesla Collision Center for more significant damage, such as damage to the body panels.

Other car insurance coverage for Teslas

Teslas need to be insured like regular gas-powered vehicles. Even if your Tesla has self-driving capabilities, you are still legally required to meet your state’s minimum insurance requirements. Most states require drivers to carry personal liability insurance, but if you live in a no-fault state, you will also most likely have to purchase personal injury protection (PIP).

In addition to liability insurance, Tesla owners may benefit from certain optional coverage types. For example, having roadside assistance coverage may come in handy if your vehicle runs out of charge and you get stranded. If you lease or finance your Tesla, your lessor may recommend gap insurance, which can help repay your loan if your new car gets totaled.

Another optional policy to consider is accident forgiveness, which may keep your Tesla insurance rate from increasing after your first accident. This coverage may be especially useful considering that Tesla owners typically pay higher insurance premiums than other vehicle owners.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze November 2024 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 are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: Tesla Model 3, Tesla Model Y, Tesla Model X, Tesla Model S Performance and Toyota Camry (base).