How Much Does Tesla Insurance Cost? Rates by Model

Teslas are more expensive to insure than other cars because they cost a lot to repair.

Cost by model:

How much is Tesla insurance?

The cost of Tesla insurance varies a lot based on which insurance company you choose, as well the model and trim.

While it's not the most affordable Tesla to buy, the Model Y is a crossover that's slightly cheaper to cover than the Model 3. Crossover cars tend to have the cheapest insurance rates.

The most expensive Tesla to insure is the Model S, at an average cost of $413 per month for the base model.

Tesla insurance: rates by model

While the average cost to insure a new Tesla vehicle is $329 per month, the price varies a lot by model. The cheapest Tesla to insure is the Model Y, which has an average rate of $255 per month.

Model 3

The Model 3 sedan is Tesla's least expensive model to buy, currently starting at $38,990 before incentives or add-ons. But the cost to insure is still fairly expensive, at $282 per month for the newest base model.

Choosing either of the more expensive Model 3 trims, which have larger batteries and higher maximum speeds, can raise your insurance bill slightly.

Average cost of car insurance for Tesla Model 3

Model Y

The Model Y is the cheapest Tesla to insure, with an average rate of $255 per month for the base trim. That's 13% less than the average rate across all new Teslas.

The Model Y is a compact crossover vehicle. These types of cars tend to have the most affordable rates compared to smaller sedans or larger, more expensive, full-size SUVs.

Average cost of car insurance for Tesla Model Y

Model S

Tesla's first mass-produced vehicle, the Model S, is also its most expensive to insure, with an average rate of $413 per month. The Model S starts at $94,990 without discounts or add-ons.

Surprisingly, the high-end Model S, with a top speed of 175 MPH, is less expensive to insure than the base model — though only by about $8 per month.

Average cost of car insurance for Tesla Model S

Model X

The Model X, Tesla's high-end, full-size SUV, costs an average of $356 per month to insure. That's $759 more than the typical price across all models.

The cheapest insurer for the Model X is Tesla's own insurance program, which offers a typical rate of $175 per month.

Average cost of car insurance for Tesla Model X

Which companies offer the cheapest insurance for a Tesla?

Compared to the largest national insurance companies, Tesla Insurance has the cheapest auto insurance rates to insure a Tesla in Texas, at an average rate of $169 per month for a new Tesla. That's half the average rate.

State Farm is the second-cheapest company and the most affordable among major insurers, with an average monthly rate of $218.

Average full coverage car insurance quotes for Teslas

To make sure you get the most affordable Tesla insurance rates, get free online quotes to compare car insurance rates from different companies.

Tesla Insurance program review

Tesla's insurance program is only available to people who own Tesla cars, but you can insure a non-Tesla vehicle there as well.

Tesla's own insurance rates are substantially cheaper than other companies. The typical rate is $169 per month across all new Tesla models — that's 49% less than the average rate.

Tesla drivers with high Safety Scores can see even more savings. A perfect score of 100 typically saves you 37% off the base rate.

Unlike most insurance companies, Tesla does not consider any of the following factors when setting car insurance rates:

However, Tesla's exclusive use of its onboard sensors means that a single incident, even if it's not your fault, can impact your rates. Customers have reported another driver unexpectedly pulling in front of them leading to price increases of $10 or more for next month's premium.

Tesla Insurance also gets a lot of complaints from its customers, suggesting drivers are often unhappy with the service they receive. Tesla Insurance receives nearly six times as many complaints as a typical car insurance company.

Where is Tesla Insurance available?

Tesla's car insurance is available exclusively to Tesla owners in 12 states.

Extra Tesla coverage options

You can add the Autonomous Vehicle Protection Package to cover:

Tesla Insurance rates by Safety Score

While Tesla's insurance rates are very affordable for nearly all drivers, your rate drops even more if you have a high Safety Score.

A perfect score of 100 will get you a monthly rate of just $74 on a new Model 3. That's shockingly low compared to the overall average of $282 per month

Tesla adjusts rates according to five-point Safety Score increments. So if your average score falls between 95 and 99, your rate will increase to $87 per month

How does the Tesla Safety Score work?

Tesla's Safety Score works much like other telematics car insurance like Progressive Snapshot. The Tesla app monitors your driving habits and assigns a score between 0 and 100, with most drivers getting an 80 or above.

The biggest difference is that your score is the only thing Tesla considers when setting rates, so your actions have a big impact on what you pay each month.

Unlike many other telematics systems, Tesla is specific about what causes your score to go down:

Your Safety Score is calculated daily, and a weighted average based on driving time is calculated over the last 30 days.

Average monthly Tesla Insurance rates by Safety Score

Tesla Insurance rates in California

Tesla Insurance in California works differently than Tesla Insurance in other states because the California rates aren't based on your Safety Score.

However, Tesla's own insurance program is still the most affordable option available in the Golden State. Its average price across all 2022 Tesla models is $187 per month. That's 45% less than the state average, and $81 per month cheaper than the second-best option, Geico.

Average full coverage Tesla quotes in CA

Why are Teslas so expensive to insure?

Tesla cars are expensive to insure because they are expensive to buy and repair. They're even more expensive to insure compared to other electric cars.

That's why the cost to repair a Tesla, even for a minor fender bender, can easily reach several thousand dollars. As the cars include more custom parts, safety features and technology, the cost per collision may continue to rise.

Quotes for a Tesla also factor in the cost of replacing the car's high-end tech after a crash.

Frequently asked questions

Methodology

All car insurance quotes are for a full coverage policy for a 30-year-old driver with good credit. Unless otherwise stated, rates are statewide averages in Texas.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.