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.

Tesla Insurance – Tesla

Tesla Insurance offers comprehensive coverage and claims management support that’s often 20% to 30% lower than other car insurance providers.

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

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.

In this article

    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.

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      What is the 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

      Tesla

      $436

      Progressive

      $539

      Geico

      $545

      State Farm

      $554

      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.

      The 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.

      Telsa FAQs

      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.

      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.

      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.

      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.

      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.

      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.