Tesla Car Insurance Review

Tesla is known for manufacturing innovative electric vehicles, but you may not realize how expensive it can be to insure these ingenious machines. Tesla burst onto the electric auto scene in 2008, and has since produced a number of ground-breaking vehicles. But this innovation gets pricey with the traditional insurance companies and rates to insure drivers have typically been more expensive. Realizing this, Tesla now offers car insurance you can purchase direct — currently only available in California with a plan for additional states. Our Tesla auto insurance review uses our SimpleScore methodology to compare it to other brands including coverage options, discounts, customer satisfaction, support and website accessibility.

Tesla Insurance – Tesla

If you live in California, it’s worth getting a quote for Tesla car insurance. Is it as exciting as the SpaceX program? Probably not, but worth a look anyways.

J.D. Power Rating
3/5
AM Best Rating
N/A
Standard & Poor’s
N/A
SimpleScore
2.3 / 5.0
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SimpleScore Tesla 2.3
Affordability 1
Coverage Options 4
Customer Satisfaction N/A
Support 2
Accessibility 2
  • Can save up to 30% on premiums compared to other insurance companies
  • Quick purchase process online
  • Upfront pricing without any hidden fees
  • Only available in California
  • Can’t combine non-Tesla cars with a Tesla insurance policy
In The News
Tesla in the news
  • Tesla is positioned to join the S&P 500 beginning December 21, 2020 and will be one of the biggest companies to join the famous index. The company has a current index rating of 1%, which means it will only represent a tiny portion of the overall index.
  • With COVID-19 disrupting the lives of millions, Tesla has announced it will offer 14-day paid sick leave for any employee who tests positive for the virus. This is available for any employee or their family member who is affected.
  • Elon Musk is also the founder of the Musk Foundation. This is the charitable arm of the Musk companies and donates hundreds of millions for grants in four central areas like renewable energy research and advocacy, human space exploration research and advocacy, pediatric research and science education.

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    In this article

      What we like about Tesla car insurance 

      When Elon Musk, the founder of Tesla, realized there was a discrepancy with the higher insurance premiums for Tesla cars, he did what he does best — he invented a new way to purchase direct from the manufacturer to maximize savings. No one understands the intricacies of Tesla’s electronics and makeup better than, well, Tesla.

      [Read: The Best Car Insurance Companies]

      Autonomous vehicle protection package

      If your Tesla is equipped with self-driving equipment, then you can add the Autonomous Vehicle Protection Package to your policy. This covers liability coverage for autonomous vehicle owners. This includes extra coverage for a wall charger, electronic key replacement and identity fraud as well.

      Quick online quote and purchase options

      It’s not surprising a company like Tesla would rely on the latest technology to allow consumers a quick, online purchase option. You can also request a quote from Tesla insurance online

      Who should get this policy

      If you want the Autonomous Vehicle Protection Package then Tesla is one of the few insurance companies offering additional coverage for self-driving cars.

      Things to consider 

      Before you sign on the dotted line, keep this in mind.

      Limited availability with Tesla 

      The Tesla car insurance program has been available for over a year now and is still only available in California. There is no indication it will roll out to other states by a specific date, other than a note on the Tesla website saying “coming soon.”

      Tesla is not the underwriter

      Tesla doesn’t actually underwrite their own policies — this is currently handled by Liberty Mutual and State National.  There are indications as the Tesla auto insurance segment grows it could eventually become the underwriter to their policies. If Tesla becomes its own underwriter, you can expect greater coverage detail on the innovative features of a Tesla.

      Who shouldn’t get this policy

      If you live anywhere besides California, you won’t be able to purchase the Tesla car insurance. If you have another non-Tesla car, you won’t be able to combine it with the Tesla car insurance policy.

      What we analyzed 

      Our team analyzed several aspects of Tesla car insurance, including discounts, coverage, customer satisfaction, support and accessibility.

      Discounts: Tesla offers a multi-Tesla discount, so if you own more than one in your family you can save by bundling. Since Tesla insurance only insures Teslas, this means you won’t be eligible for any multi-policy discounts, like if you bundle your home or renters policy with an auto policy. Every major insurance carrier offers a bundling discount so this is important to keep in mind as you’re comparing quotes.

      Coverage: Like other major providers, Tesla offers the full coverage offerings you expect for auto insurance for both you and additional drivers in your family. You can find options for liability coverage — both bodily injury and property damage, collision and comprehensive coverage and uninsured/underinsured motorist. Additionally, Tesla offers gap insurance, collision deductible buyback and total loss deductible. Where Tesla differs from major companies is the lack of rideshare coverage availability.

      Customer satisfaction: Tesla insurance is not featured on the latest J.D. Power 2020 Auto Claims Overall Customer Satisfaction Survey, likely because of the short time the coverage has been offered. Overall, reviews on sites like Reddit indicate consumers are mostly satisfied with the claims process and customer service they’ve received from Tesla.

      Support: Support for your Tesla car insurance policy is offered online and by calling the customer service number. At this time, there is not a dedicated app for your auto insurance, although you can download a digital copy of your ID card online.

      Accessibility: You can easily obtain a quote online with Tesla or calling them directly. There isn’t an agent network so the fastest route is through the website. You can also process claims by phone or online.

      Compare auto insurance policies

      Just answer a few, simple questions and we’ll do the rest!

      Tesla car insurance vs. the competition 

      For this Tesla car insurance review, we compared it to other major brands for auto insurance. Here’s a snapshot of what we found.

      If Tesla has options, so does Progressive. But you don’t need an electric car to get great insurance.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA
      SimpleScore
      4.2 / 5.0
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      SimpleScore Progressive 4.2
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 4
      Support 4
      Accessibility 4

      Like Tesla, Progressive offers a full range of coverage options, including GAP coverage and rideshare coverage. In addition, Progressive is known for the wide range of discounts offered, including the Name Your Price tool and Drive Safe and Save discount. Read our full Progressive review here to find out about the long list of options for your policy and discounts with Progressive.

      It can be argued that Geico’s mascot is cuter than Tesla’s. And it can save you more money, too.

      J.D. Power Rating
      3/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA+
      SimpleScore
      4.8 / 5.0
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      SimpleScore GEICO 4.8
      Discounts 5
      Coverage Options 5
      Customer Satisfaction 4
      Support 5
      Accessibility 5

      Geico is another is the second-largest auto insurance provider in the U.S. and offers a wide variety of coverage options. The adorable little gecko promises to save you up to 15% through a wide array of discounts too. Geico is ranked highest overall in the J.D. Power 2020 U.S. Insurance Shopping Study, while Tesla has yet to be included in many consumer studies. You can read our full Geico review to find out more.

      If you’re in the exclusive Tesla club and in the USAA club, you can get great insurance through this military provider.

      J.D. Power Rating
      5/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA+
      SimpleScore
      4.4 / 5.0
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      SimpleScore USAA 4.4
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 5
      Support 4
      Accessibility 4

      If you’re a member of the military or a veteran, USAA offers a vast number of coverage and discount options, in addition to great customer service ratings. USAA also receives high marks for the auto insurance app, making it a great choice for those who want their insurance information at their fingertips. Check out our full USAA review.

      Tesla’s car insurance rates

      The average monthly premium for Tesla insurance with other carriers is $211 per month. If you want to know how much is Tesla insurance then you’ll have to work directly with Tesla for a quote. Bear in mind all auto insurance quotes are based on your demographics, driving history and other specific information, so no two quotes are the same.

      At this time, Tesla is not offering the telematics option (a Bluetooth-connected app to monitor driving) through the Tesla app but it’s safe to say this could become a possibility in the future. This is a popular feature with other insurance companies to include in order for a consumer to receive an additional discount.

      [Read: How Much Car Insurance Do You Need?]

      Tesla Insurance online and mobile app 

      Tesla makes it convenient to get a direct quote, purchase and manage your policy online. At this time, there isn’t an app specifically for handling your Tesla insurance.

      How to purchase Tesla Insurance 

      Tesla makes it simple to purchase. Unlike numerous auto insurance companies where you’re required to work through an agent, Tesla allows you to purchase online or call the company to speak with a licensed agent. Live chat is also available online for customer service.

      If you’ve only recently purchased your Tesla or are waiting on delivery, you can proceed with a quote or policy purchase as long as you have the VIN.

      We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

      Methodology

      SimpleScore

      The SimpleScore makes it easy to compare products and services featured here on The Simple Dollar in a transparent, open and honest way. We rate these products and services using five factors and average them to calculate a single SimpleScore. For auto insurance, we compare:

      • Discounts
      • Coverage options
      • Support
      • Customer satisfaction
      • Accessibility

      You can read more about each factor and the details of each score in our auto insurance methodology. Use our ratings and editorial recommendations as you shop for the best auto insurance that fits your coverage needs.

      Car insurance rates: We used insurance rates from Quadrant Information Services. This includes analyzing thousands of rates from all 50 states that were publicly sourced from 2019 insurer filings. Rates are based on a 30-year-old male or female that had a clean driving record. Full Coverage premiums assumed a $500 collision and comprehensive deductible, and we looked at those who had both good and poor credit. These rates should be used to inform your car insurance shopping process, but your own quote may differ.

      Why do some brands have different SimpleScores on different pages?

      To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
      However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

      Discounts

      We looked at the number of discounts each company offers — more discounts mean a higher score.

      Coverage Options

      We awarded higher scores to the companies that have the most coverage options.

      Support

      We awarded higher scores to lenders with the most channels for customer support.

      Customer Satisfaction

      We leveraged the J.D. Power 2019 Auto Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

      Accessibility

      We looked at the level of accessibility of each company –– the more resources they have the higher their score.

      Sara Coleman

      Contributing Writer

      Sara Coleman is a personal finance journalist based in Charlotte, NC. A journalism major who studied at the University of Georgia, she enjoys creating approachable content. She’s written for sites such as The Simple Dollar, Interest.com, WorkingMother, BetterYouMag and SmartMoneyMamas. She loves spending time with her husband and three kids, and has a healthy obsession with coffee.

      Reviewed by

      • Nashalie Addarich
        Nashalie Addarich
        Insurance Editor

        Nasha Addarich is an editor at The Simple Dollar and a former attorney who specializes in home insurance, auto insurance, life insurance, and savings. She is a former contributing editor to Reviews.com.