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Tesla Insurance review 2025

Updated May 01, 2025
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At a glance

Bankrate's take

Drivers who want nontraditional car insurance with coverage options tailored to the needs of an electric car owner may want to consider Tesla Insurance.

  • Tesla’s real-time insurance model could provide cheap coverage for safe drivers
  • Tesla Insurance allows for straightforward policy management directly through the Tesla app
  • In California, Safety Score is only used for educational purposes for drivers and does not impact your premiums
  • Tesla Insurance is yet to be rated by J.D. Power and AM Best

New

What’s new with Tesla?

In a move that may be of interest to California drivers, Tesla recently announced that all new policies in the state would be underwritten by Tesla Insurance itself, rather than State National Insurance Company, as was previously the case. Policyholders who switch to the new underwriter will earn a three percent discount. 

As of 2025, Tesla offers car insurance in 12 states, with plans to expand into more of the U.S. in the future. Current availability includes Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia. In August 2024, the company released new details about state-specific discounts like multi-car and good driver discounts.

Tesla car insurance review

Tesla Insurance is known for its telematics-based car insurance, meaning that real-time driving behavior plays an integral role in calculating car insurance rates. For this reason, Tesla Insurance may be a natural fit for drivers who want to have a direct influence on their car insurance cost, as the carrier does not use traditional car insurance rating factors like age, gender, claim history and driving record when calculating premiums.

Instead, Tesla Insurance calculates a monthly Safety Score that grades seven factors when you drive: hard braking, aggressive turning, following distance, excessive speeding, late-night driving, forced autopilot disengagement and unbuckled driving. A higher Safety Score results in lower premiums, while a lower Safety Score could result in more expensive premiums. Other factors that go into Tesla Insurance premiums include which car you drive, where you live, how much you drive and which coverage you select. Tesla doesn’t use the Safety Score to calculate rates in California due to state-imposed insurance laws. If you receive Safety Score data, it will be for educational and informational purposes only.

Tesla offers standard coverage options, including bodily injury, property damage liability, collision and coverage. Other options vary by state. Additionally, depending on state availability, Tesla Insurance may also offer an Autonomous Vehicle Protection Package that could cover expenses like electronic key replacement, loss or damage to the wall charger and incidents when the vehicle is being driven by autopilot.

Pros and cons of Tesla car insurance

Tesla's unique car insurance has many benefits, but it's not without its shortcomings. Below is a summary of Tesla car insurance's pros and cons as identified by our insurance editorial team.

Green circle with a checkmark inside

Pros

  • Several optional coverage types available, depending on the state
  • Tesla owners can also insure non-Tesla vehicles in California
  • Most states allow for real-time driving behavior rating, which allows drivers to have some control over their premium
  • Safer drivers could get lower insurance rates
  • Roadside assistance is available
Red circle with an X inside

Cons

  • Only available in 12 states
  • Only sells car insurance, so bundling is not available
  • Coverage is limited to Tesla owners in all states except California
  • Most contact with Tesla is done through the app, so it may be difficult to reach a live agent
  • Lack of third-party scores for customer or claims satisfaction
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Tesla car insurance cost

Average rates for Tesla car insurance are not available. Your individual rate will vary depending on several factors, including how safely you drive, and could fluctuate over time. For reference, the national average cost of car insurance is $2,692 per year for full coverage and $808 per year for minimum coverage. To understand what your Tesla Insurance rate might be, it’s advisable to obtain a personalized quote directly from Tesla, as this will provide the most accurate reflection of the cost based on your unique driving profile and vehicle specifics.

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Compare Tesla Insurance with other insurers

Bankrate’s Tesla Insurance review provides a comprehensive look at this carrier, but if you’re looking for the best car insurance for your Tesla, it can help to compare other options. Here are some of the best car insurance competitors to think about when shopping for car insurance quotes:

Tesla Insurance vs. Lemonade

Tesla drivers who like Tesla’s digital-first platform and specialized EV car insurance may want to check out Lemonade. The carrier provides coverage and discounts specific to EVs and hybrids, offers emergency charging if your battery drains while on the road and provides coverage for your wall or portable charger. Currently, Lemonade car insurance is only available in Arizona, Colorado, Illinois, Ohio, Oregon, Texas, Tennessee and Washington.

Learn more: Lemonade Insurance review

Tesla Insurance vs. Root

Drivers who want features like Tesla’s telematics-based car insurance could consider Root car insurance. The carrier has a strict sign-up process — interested drivers must first pass a test drive before receiving a coverage offer and quote. Similar to Tesla, Root is not available in every state.

Learn more: Root Insurance review

Tesla Insurance vs. Travelers

Travelers offers a specific discount for those who own or lease an electric vehicle. Additionally, the carrier’s IntelliDrive program tracks real-time driving behavior, with potential savings opportunities of up to 30 percent for safe driving. While Travelers car insurance isn’t entirely based on the telematic IntelliDrive program, it is a nationally available insurance carrier.

Learn more: Travelers Insurance review

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Is Tesla Insurance a good insurance company?

Tesla Insurance is a relatively new car insurance company but could fill a need for Tesla drivers who want a different option for car insurance. Tesla drivers may already be using the Tesla app to manage their vehicles and submit service requests, so being able to manage their car insurance through the app as well could be another convenience.

Tesla Insurance also doesn’t factor in usual car insurance rating factors like driving history and credit history, instead giving drivers a chance to be rated based on their real-time driving performance (in most states). That can be a pro or con depending on your situation. Older drivers with a good record might not see much benefit, but younger drivers who are typically seen as riskier to insure might be able to get Tesla coverage for cheaper than other policies if they drive safely.

It's worth noting, however, that drivers who may struggle to maintain safe driving habits on the road could see an increased rate. According to some drivers on public forum review sites, Tesla's Safety Score app can be sensitive, lowering their score for minor infractions — this could mean that even drivers who are generally careful when behind the wheel might see an increase. 

Potential Tesla policyholders should also be aware that because it is a smaller company and fairly new, Tesla insurance is not rated by any major third-party organizations that monitor factors like customer satisfaction and financial strength. In order to assess these characteristics, it may be helpful to talk to others who have Tesla coverage and read reviews online.

What are real-life customers saying about Tesla Insurance?

To look deeper into the Tesla Insurance experience, we've turned to real-life accounts from customers sharing their insights on Reddit. Although Reddit is primarily a community discussion platform rather than a dedicated review site, it offers a rich tapestry of user experiences, making it a valuable resource for prospective Tesla Insurance policyholders. Through these discussions, individuals candidly share their personal experiences, from customer service interactions to the claims process, providing a nuanced view of what new customers might expect when choosing Tesla for their car insurance needs.

Reddit

Reddit users offer varied experiences with Tesla Insurance, highlighting the impact of the driving score on premiums and the concerns about how certain driving scenarios, like narrow streets or bends, might affect it. Some shared positive claim experiences, noting efficient handling and coordination with Tesla Collision Centers, despite occasional communication hiccups. Others expressed frustration over constant worry about maintaining a high safety score, leading them to switch back to traditional insurers despite the potential savings with Tesla.

Reddit user 1*
Apr 12, 2023
Narrow streets ding me
If you live in a city I would not recommend it. I tested it out for a month and my premium went from like $80/month to $120/month. If I drove on narrow streets, it would ding me for being too close to other cars. If I was driving near a street that has a curve/bend and there’s an oncoming car on a different lane…it’ll think I’m going to crash into it, it’ll start the collision warning and ding me again for it. My gym has a bend to get into it so this would happen fairly often.
Reddit user 2*
Apr 12, 2023
Definitely worth the savings
Got rear-ended recently in my Model Y two weeks after delivery. Filed a claim the same day(Saturday) with both my insurance (Tesla Insurance) and person at faults insurance (USAA). Got an email Sunday from Tesla to submit additional info. Tesla Insurance reached out to me the following Monday to discuss everything and said they would do the subrogation thing. I already had body shopped picked out (Tesla Collision) and gave her the info right then. She set me up a rental through Enterprise for when I would drop off my car. 4 weeks waiting for an appointment, 3 weeks for the repair. Also didn’t want an Enterprise rental and wanted a Model 3 from Hertz, reimbursement check for that rental was received about a week after the rental was returned. Other than my claims advisor not picking up my calls a few times, I would say it was definitely not as bad as people say and definitely worth the savings for me. I am definitely considering switching though as not to worry about the driving score but not anytime soon I think.

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

Tesla Insurance company details

  • Customer service: 1-844-34-TESLA (1-844-348-3752)
  • Claims: Claims are filed through Tesla’s mobile app. Questions about a claim can be directed to the claims adjuster assigned to that claim.

State availability

Tesla only writes car insurance for Tesla drivers in 12 states: AZ, CA, CO, IL, MD, MN, NV, OH, OR, TX, UT and VA. Tesla does not offer real-time driving behavior insurance rating in California at this time.

Tesla Insurance tools and benefits

Tesla's foray into insurance is focused solely on auto insurance. However, it does have additional products and features that may be particularly useful to the owners of electric vehicles.

  • Charging calculator: Tesla's charging calculator may help current and potential EV owners discover how much money they could save by switching from gas to electric vehicles.
  • Supercharger voting: Finding a location to charge your vehicle can be a challenge. However, every three months, Tesla has a voting cycle where Tesla owners can vote on where the next supercharger location should be. Owners can also suggest new sites and potentially host a supercharging station at their property.
  • Charging station options: Tesla offers many charging solutions, from installing residential charging stations to mobile connectors and adapters. The company can even help you find a Tesla-certified installer for wall connectors or solar roof panels.

Frequently asked questions about Tesla insurance

What policyholders are saying about Tesla

CTA Tesla has 51 reviews

Tesla has 51 reviews

Dive into community reviews below and see what others think about Tesla.

4.1 Star Icon
51 ratings
72% of consumers
recommend this insurer
Score breakdown
5 stars
47%
4 stars
25%
3 stars
18%
2 stars
6%
1 star
4%
Score by category
Overall rating 4.1 / 5
Original cost 3.8 / 5
Coverage 4.0 / 5
Customer Support 4.4 / 5
Verified Badge Icon How we got these ratings

In May 2024, Bankrate collaborated with market research firm SliceMR to survey over 1,500 insurance customers nationwide, asking policyholders to rate their insurer’s cost, coverage, customer support and overall experience on a five-point scale. Bankrate and SliceMR collected and analyzed these customer ratings, along with website analytics and responses to three open-ended questions regarding customer experience. Responses are based on individual policyholders’ policy details and personal experience, and therefore cannot be verified for accuracy. Users received an incentive for their feedback. All ratings are unedited and have not been reviewed or approved by insurance carriers. User-generated ratings are separate from carrier Bankrate Scores — which are calculated based on our proprietary methodology — and may not match.

Community Reviews

See what users like you are saying about Tesla.
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Anonymous Policyholder
April 10, 2025
What made you choose this insurer over others for your auto and/or home insurance?
This insurance company is very reliable
Insurance Type
Auto
Score by category
Original cost 5 / 5
Customer Support 5 / 5
Coverage 5 / 5
Anonymous Policyholder
April 10, 2025
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
The price is affordable and they are very helpful. I'm not switching, as it is a hassle.
Insurance Type
Auto
Score by category
Original cost 5 / 5
Customer Support 5 / 5
Coverage 5 / 5
Anonymous Policyholder
April 10, 2025
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
I don’t have any complains I just have no choice bc insurance is important so that’s why I have it
Insurance Type
Auto
Score by category
Original cost 3 / 5
Customer Support 4 / 5
Coverage 2 / 5
Anonymous Policyholder
April 10, 2025
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
They are very helpful and always available so not planning to change them
Insurance Type
Auto
Score by category
Original cost 5 / 5
Customer Support 5 / 5
Coverage 5 / 5
Anonymous Policyholder
April 10, 2025
What made you choose this insurer over others for your auto and/or home insurance?
This company is very helpful and has excellent communication when looking for a car insurer.
Insurance Type
Auto
Score by category
Original cost 5 / 5
Customer Support 5 / 5
Coverage 5 / 5
Anonymous Policyholder
April 10, 2025
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
Need to understand both sides of the business and know how to work with them. So far the experience was great.
Insurance Type
Auto
Score by category
Original cost 4 / 5
Customer Support 5 / 5
Coverage 4 / 5
Anonymous Policyholder
April 10, 2025
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
The primary reason I would stay with Tesla insurance is because it’s convenient
Insurance Type
Auto
Score by category
Original cost 4 / 5
Customer Support 5 / 5
Coverage 4 / 5
Anonymous Policyholder
April 10, 2025
Name the number one reason that you’d recommend staying with this insurer and the number one reason that you’d consider leaving for a different company.
The primary reason is late night driving . It would cost me extra if I use my car after 11:00pm to 4:00 am
Insurance Type
Auto
Score by category
Original cost 3 / 5
Customer Support 5 / 5
Coverage 2 / 5
Anonymous Policyholder
April 10, 2025
What made you choose this insurer over others for your auto and/or home insurance?
I chose this insurer because of their competitive rates, strong customer service, and positive reviews about claim handling. Compared to previous companies, they offer more flexible policy options and a smoother online experience for managing my account and claims.
Insurance Type
Auto
Score by category
Original cost 4 / 5
Customer Support 5 / 5
Coverage 4 / 5
Anonymous Policyholder
April 10, 2025
What made you choose this insurer over others for your auto and/or home insurance?
I appreciate their clear communication.
Insurance Type
Auto
Score by category
Original cost 4 / 5
Customer Support 5 / 5
Coverage 4 / 5
Written by
Ashlyn Brooks
Writer II, Insurance
Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.
Edited by Senior editor, Insurance