How Much Does Tesla Car Insurance Cost?
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The high cost of a Tesla doesn’t stop at its sticker price. Insurance costs for Teslas tend to be significantly more expensive than those of other popular cars, despite Tesla’s high safety ratings.
Still, insurance costs can vary dramatically, even among different Tesla models. Below are the average insurance rates by Tesla model, ranked from cheapest to most expensive:
Tesla model | Annual average rate | Monthly average rate |
|---|---|---|
Model 3 | $2,221 | $185 |
Model Y | $2,438 | $203 |
Model S | $3,215 | $268 |
Model X | $3,831 | $319 |
For comparison purposes, the average cost of car insurance for a 3-year-old Toyota Camry is $2,281. These rates are for full coverage insurance for good drivers with good credit. Keep in mind that your cost will differ based on variables like where you live and your insurance company.
NerdWallet analyzed full coverage insurance rates from the nation’s largest auto insurers in every state for the Model 3, Model Y, Model S and Model X. Here’s what we found.
Tesla sells its own car insurance. If you’re here to learn more about that, skip to our section on Tesla insurance below.
How much does Tesla insurance cost in my state?
Because car insurance prices fluctuate based on where you live, we created this U.S. map to show you average monthly rates across the country for the Tesla Model 3, Model Y, Model X and Model S.
As you can see, Tesla car insurance costs can change a lot depending on where you live. That’s because each state has different car insurance regulations, and every city has different rates of car thefts, accidents, population density and more.
» MORE: Why is my car insurance so high?
But that doesn’t mean your wallet has to suffer if you live in a high-cost area. You can save by shopping around to find the cheapest Tesla car insurance. Our analysis found that comparing costs could save you anywhere from around $35 to more than $300 depending on your state.
Click on your Tesla model below to find cheapest median rates in each state.
What company has the cheapest Tesla car insurance?
Of the nation’s largest insurers, Travelers has the cheapest rates on average for Tesla Model 3 owners. USAA would have beat out Travelers, but it was not included in our analysis because it is offered only to military members, veterans and their families. In addition, although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information.
To find the cheapest Tesla car insurance, make sure to check smaller regional insurance companies as well. They may have better prices than the bigger players you see advertised on TV.
Note: Rates for Tesla’s own insurance, Tesla Insurance, weren’t available. Read more about Tesla Insurance below.
Tesla Model 3 insurance: cheapest companies
Company | Median monthly rate |
|---|---|
$149 | |
$164 | |
$165 | |
$202 | |
$203 | |
$210 | |
$274 | |
$332 | |
$138 | |
*USAA isn't ranked because it is available only to active military, veterans and their families. | |
Tesla Model Y insurance: cheapest companies
Company | Median monthly rate |
|---|---|
$171 | |
$190 | |
$203 | |
$211 | |
$218 | |
$234 | |
$322 | |
$379 | |
$133 | |
*USAA isn't ranked because it is available only to active military, veterans and their families. | |
Tesla Model S insurance: cheapest companies
Company | Median monthly rate |
|---|---|
$216 | |
$265 | |
$277 | |
$281 | |
$313 | |
$389 | |
$465 | |
$516 | |
$219 | |
*USAA isn't ranked because it is available only to active military, veterans and their families. | |
Tesla Model X insurance: cheapest companies
Company | Median monthly rate |
|---|---|
$231 | |
$276 | |
$287 | |
$317 | |
$368 | |
$374 | |
$466 | |
$478 | |
$373 | |
*USAA isn't ranked because it is available only to active military, veterans and their families. | |
What about Tesla Insurance?
Rates for Tesla’s own insurance, Tesla Insurance, weren’t available. That said, we can explain what it is and how it works.
What is Tesla Insurance?
Tesla launched its own car insurance option in 2019 to try to ease the financial burden Tesla owners faced when insuring their electric vehicles. In the past, the company has claimed Tesla Insurance can save drivers about 20% when compared with other carriers.
Tesla insurance is currently available to Tesla owners in the following states:
Arizona.
California.
Colorado.
Illinois.
Maryland.
Minnesota.
Nevada.
Ohio.
Oregon.
Texas.
Utah.
Virginia.
Tesla insurance is available for new and current Tesla owners, and their non-Tesla vehicles may qualify for coverage, too. And if you live in California, you can even get Tesla insurance without owning a Tesla.
» MORE: Best car insurance companies
How Tesla Insurance works
Tesla uses real-time driving behavior to determine your car insurance premium. It's available for the Model 3, Y, S and X in all states that sell Tesla Insurance except California. California drivers can still buy Tesla Insurance, but the cost won't be based on your driving habits.
Tesla is able to collect data on your driving habits through your Tesla car without using an additional app or plug-in device.
Driving behaviors tracked include:
Number of forward-collision warnings.
Hard braking.
Aggressive turning.
Excessive speeding.
Driving unbuckled.
Inattentive driving that forces disengagement from its autopilot system.
How close you are to the car in front of you.
How often you drive late at night.
Based on this data, Tesla gives you a Safety Score from 0 to 100, where a higher score represents safer driving. Your safety score updates daily whenever you take your Tesla for a spin. New policyowners are given a score of 90.
Unlike traditional insurers, the company does not take into account your marital status, age, gender or credit history. It also doesn’t use your accident or traffic violation history as a factor to determine your initial or future auto insurance premium.
Instead, Tesla uses the following factors to determine cost:
Your vehicle’s Safety Score.
Miles driven.
Where you live.
Vehicle make and model.
Coverage purchased.
Number of vehicles insured.
Is Tesla Insurance worth it?
Tesla Insurance is worth a look if you live in one of the states where policies are sold. The company offers a mix of standard coverage options you’d expect from a typical insurance company (such as liability, comprehensive and collision). Tesla also offers rental coverage and roadside assistance.
Additional coverage types and discounts are available on a state-by-state basis, which you can check out here.
Even if you qualify for one or more Tesla insurance discounts, this doesn’t automatically mean Tesla will have the cheapest rate for you. Be sure to compare car insurance companies to find the most affordable coverage.
Why insuring a Tesla is so expensive
The more your car costs, the more expensive it is to insure. If your Tesla gets damaged, it’ll cost your insurance company more to replace or repair it than a less-expensive vehicle. Because of that, insurers will charge you more for Tesla car insurance, specifically, comprehensive and collision insurance.
How much is a Tesla?
Teslas are priced similarly to luxury cars and other electric vehicles, making them relatively expensive. However, Tesla has recently lowered the price on its models amidst shrinking car sales and other company challenges .
Below is the approximate starting price for a Tesla base trim by model at the time of this publication:
Tesla model | Base trim price |
|---|---|
Model 3 | $38,990 |
Model Y | $44,990 |
Model S | $74,990 |
Model X | $79,990 |
Upgrading beyond the basic model can send your Tesla cost skyrocketing. For example, you’ll pay $8,000 to add full self-driving capability, and any paint color other than the default color will set you back an extra $1,000 to $2,000 for the Model 3. And the more features you add to your Tesla, the more it will cost to insure.
Tesla repair costs
Teslas are made with expensive parts, contributing to their base cost. For starters, replacing a Model 3 battery module could cost nearly $13,000.
Tesla repair costs are also higher due to the cars’ aluminum bodies, which are more expensive than those made with traditional materials. If you damage a plastic or steel part on your 2012 sedan, an auto body shop can fix it for relatively little cost. The same isn’t true of aluminum. And if you do get in an accident, you’ll have to take your car to a Tesla service center or Tesla-approved collision center.
All of those potential repair costs come back to owners in the form of higher Tesla car insurance prices.
Auto insurance buying guide
When shopping for car insurance for your Tesla, take note of these tips:
Collect basic information. This includes the driving history of everyone who will be on the policy, as well as facts about your car, such as safety features and annual mileage driven.
Determine your coverage needs. For example, do you want only the bare minimum insurance that your state requires, or do you need more extensive coverage, such as gap insurance or rideshare coverage? Check that each company you’re considering has the options you want.
Compare apples to apples. When comparing rates among insurers, make sure each is offering the same or similar coverage limits and deductibles.
Don’t fixate on price alone. Look at how many consumer complaints each company has, as a high number of complaints could be a red flag about the quality of service you'll receive.
Depending on which company you choose, you may be able to buy insurance online, over the phone or through an agent. For more guidance, see how to get car insurance.
Why you can trust NerdWallet
Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate outliers and inaccuracies in pricing data, which includes rates from every locale in the country where coverage is offered and data is available.
When comparing rates for different coverage amounts, ages and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing. Read our methodology.
NerdWallet looked at median insurance estimates from insurers in all 50 states and Washington, D.C., for the base 2024 Tesla Model 3, Y, S and X.
Rates were for 35-year-old male and female drivers with good credit, no tickets or violations, and with the following coverage limits:
$100,000 bodily injury liability coverage per person.
$300,000 bodily injury liability coverage per crash.
$100,000 property damage liability coverage per crash.
$100,000 uninsured motorist bodily injury coverage per person.
$300,000 uninsured motorist bodily injury coverage per crash.
Collision coverage with $1,000 deductible.
Comprehensive coverage with $1,000 deductible.
In states where required, minimum additional coverages were added. Some policies include additional coverages at the insurer’s discretion. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
