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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:
Model Y ($2,040).
Model 3 ($2,115).
Model S ($3,008).
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.
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
Cheapest average rate
American Farmers & Ranchers
Farmers Mutual of Nebraska
Main Street America
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.
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.
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.
Vehicle make and model.
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:
Base trim price
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.
» MORE: Compare car insurance
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.