How Much Does Tesla Car Insurance Cost?

Tesla insurance can be expensive. To get the best rates, shop around.
Jul 28, 2022

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The high cost of a Tesla doesn’t stop at its price tag. Insurance for a Tesla tends to be significantly more expensive than that of other popular vehicles, despite high safety ratings.

Still, rates can vary drastically, even among different Tesla models. Below are the average annual insurance rates by Tesla model, ranked from cheapest to most expensive:

  1. Model Y ($2,040).

  2. Model 3 ($2,115).

  3. Model S ($3,008).

  4. Model X ($3,044).

These rates are for full coverage insurance for good drivers with good credit.

But these are just averages. Your rate will vary based on variables like location and insurance company. To get a better idea of what to expect, NerdWallet checked full coverage insurance rates from the nation’s largest auto insurers on the lowest-priced Tesla, the Model 3, in every state. Here’s what we found.

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.

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Average cost of Tesla Model 3 insurance

Tesla Model 3 insurance costs an average of $2,115 per year, or about $176 a month, our analysis shows. That’s nearly 30% higher than the national average cost of car insurance.

However, rates can vary widely from one insurer to the next. Among the largest car insurance companies in the U.S., the cost to insure the Model 3 differs by nearly $1,400 a year.

How much does Tesla car insurance cost in my state?

The cost of Tesla Model 3 insurance isn’t fixed across the U.S., with average annual rates for full coverage ranging dramatically by state.

  • Ohio has the lowest average cost to insure a Tesla Model 3, coming in at $1,308 annually.

  • Louisiana has the highest average cost to insure a Tesla Model 3, at $3,731.

Below are the average Tesla Model 3 insurance rates in each state.

You can save money by shopping around to find the cheapest Tesla car insurance. Our analysis found that comparing rates could save you anywhere from around $500 to nearly $2,000 when compared with the state average. The table below shows the cheapest average rate we found in each state.

Tesla Model 3 insurance rates by state

State

Cheapest average rate

Cheapest provider

$1,292

$1,484

Umialik

$1,206

QBE

$1,138

Southern Farm Bureau Casualty

$1,520

$915

$1,309

$1,518

$2,418

$1,374

$1,258

$522

$754

Pekin

$661

Hastings Mutual

$741

Hastings Mutual

$1,152

$1,774

Grange

$1,892

Southern Farm Bureau Casualty

$749

Concord Group

$1,482

$585

$997

Secura

$761

Secura

$749

$1,350

$1,265

QBE

$667

$1,400

CIG

$752

MMG

$1,323

Plymouth Rock

$1,322

$1,021

NYCM

$1,005

Utica National

$996

$697

Buckeye

$1,725

American Farmers & Ranchers

$1,015

QBE

$996

$1,715

$619

$1,129

Farmers Mutual of Nebraska

$993

Penn National

$1,285

$998

QBE

$698

Union Mutual

$881

Main Street America

$1,068

Pemco

$890

$1,152

$887

Secura

$871

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What company has the cheapest Tesla car insurance?

Of the nation’s largest insurers, State Farm has the cheapest rates on average for Tesla Model 3 owners. USAA would have beat out State Farm, 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 auto insurance, make sure to check smaller regional providers as well. They may have better rates than bigger players in your neighborhood.

Note: Rates for Tesla’s own insurance, Tesla Insurance, weren’t available. Read more about Tesla Insurance.

Company

Average annual rate

$1,756

$2,235

$2,536

$2,658

$3,151

$1,416

* 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 insurance option in 2019 to try to ease the financial burden Tesla owners faced when insuring their vehicles. In the past, the company has claimed Tesla Insurance can save drivers about 20% when compared with other carriers.

Initially selling in only California, the company is now a licensed broker providing insurance to Tesla drivers in Arizona, California, Colorado, Illinois, Maryland, Nevada, Ohio, Oregon, Texas, Utah and Virginia. In Oregon and Virginia, Tesla underwrites its own policies through Tesla General Insurance, according to Insurance Business Magazine. The company plans to expand its insurance policies to additional states in the future.

Tesla Insurance is available for new and current Tesla owners for both Teslas and non-Tesla vehicles.

How Tesla Insurance works

Tesla uses real-time driving behavior to determine your car insurance rate for most vehicles. It's available for the Model S, 3, X and Y in all states that sell Tesla Insurance except California. California drivers can still buy Tesla Insurance, but rates won't be based on your driving habits.

Tesla is able to collect data on your driving habits through your car without using an additional app or plug-in device.

Driving behavior tracked includes:

  • Number of forward-collision warnings.

  • Hard braking.

  • Taking sharp turns at high speeds.

  • How close you are to the car in front of you.

  • Driver attention levels.

Based on this data, Tesla gives you a monthly Safety Score from 0 to 100, where a higher score represents safer driving.

New policyowners are given a score of 90. If you're insuring a non-Tesla vehicle or your car doesn’t have the ability to report data, Tesla uses a Safety Score of around 86.

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 rate.

Instead, Tesla uses the following factors to determine a rate:

  • Driving behavior based on the Safety Score.

  • Miles driven.

  • Location.

  • 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 (such as liability, comprehensive and collision) and coverage for wall chargers, electronic keys and identity fraud. Tesla also offers gap insurance, rental reimbursement coverage and roadside assistance.

In its initial filings, Tesla Insurance also included collision and liability car insurance discounts for the use of autonomous driving features, ranging from 5% to 30% depending on the level of autonomy in use. Families with multiple Teslas would also be eligible for discounts.

Still, this doesn’t automatically mean Tesla will have the cheapest rate for you. 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 you’re in an accident and need repairs, your collision insurance will cover these costs unless the crash was someone else’s fault. And if your Tesla is stolen, it’ll cost your insurer more to replace it than a less-expensive vehicle. Because of that, insurers will charge you more for that coverage.

How much is a Tesla?

Teslas are priced similarly to luxury cars and other electric vehicles, making them relatively expensive.

Below is the approximate starting price for a Tesla base trim by model:

Tesla model

Base trim price

Model 3

$47,000.

Model Y

$63,000.

Model S

$100,000.

Model X

$115,000.

Upgrading beyond the basic model can send your Tesla cost skyrocketing. For example, you’ll pay $12,000 to add self-driving capability, and any paint color other than white 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, a Model 3 battery module costs $5,000 to $7,000 to replace, according to Tesla CEO Elon Musk. Tesla repair costs are also higher due to the cars’ aluminum bodies, which are much 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.

All of those potential repair costs come back to owners in the form of higher Tesla car insurance prices.

Before you compare car insurance companies, you’ll need to collect some 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. You’ll also want to determine which types of coverage you need. 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.

When comparing rates among insurers, make sure each is offering the same coverage limits and deductibles. You may not want to make your decision based 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.

Frequently asked questions

A brand-new Tesla costs anywhere from about $47,000 to $139,000, depending on which model and trim you choose. Adding self-driving capability, choosing a paint color besides white and other customizations can increase the sticker price.

The cheapest Tesla to insure on average is the Tesla Model Y at $2,040 per year. Even so, this premium is nearly 25% higher than the average national cost of car insurance, according to NerdWallet’s analysis. Tesla says its own insurance can save drivers about 20%, but policies are currently available only in Arizona, California, Colorado, Illinois, Maryland, Nevada, Ohio, Oregon, Texas, Utah and Virginia. If you live elsewhere, compare auto insurance rates to find the best company for you.

In addition to liability, collision and comprehensive insurance, Tesla offers coverage for wall chargers, electronic key replacement and identity fraud. Rental car reimbursement, roadside assistance and gap insurance are also available.

Methodology

​​NerdWallet averaged insurance estimates from the largest insurers in all 50 states and Washington, D.C., for the base Tesla Model S, 3, X and Y.

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.

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