With their solid safety ratings, high quality, and lower environmental impact, Tesla cars have a lot going for them.
But one notable downside to driving a Tesla is being stuck with a big car insurance bill. This is largely due to their high repair costs.
The good news is, you can find an affordable Tesla car insurance policy by shopping around and gathering car insurance quotes.
If you’re thinking of insuring a Tesla and want cheap car insurance, here’s what you should know.
How much does it cost to insure a Tesla?
Average Annual Premium
In the following table, you can see how much the average Jerry.ai user pays for their their Tesla car insurance:
- Model 3 $3606
- Model S $3920
- Model X $4754
- Model Y $2553
Average Annual Savings
On average, Tesla owners saved this much on their annual premiums when they swapped insurers with Jerry:
- Model 3 $1246
- Model S $938
- Model X $875
- Model Y $821
The cost of Tesla car insurance can vary significantly based on the model and trim of your vehicle, your insurance company, and your coverage levels.
And, of course, your personal profile plays a big role in determining your rates as well. Insurance companies will consider factors including your:
- Driving record
- Credit score (in some states)
- Insurance and claims history
- Annual mileage
- Marital status
What companies offer the cheapest Tesla insurance?
Here’s how much Tesla drivers saved on their car insurance from top providers with Jerry:
- Travelers 13% savings
- Safeco 26.5% savings
- Progressive 26% savings
- Allstate 5% savings
Keep in mind, the cheapest insurer for your Tesla car will depend on your model, coverage, and personal factors.
While the top insurance companies may come to mind first when you think of Tesla car insurance, it’s recommended that you also check out smaller regional carriers. They may be able to offer lower rates than the big names.
When you’re shopping for cheap car insurance quotes for your Tesla, you should try to get at least three.
It’s also a good idea to seek out insurance discounts for electric vehicles or semi-autonomous driving technology to lower your premiums. Some insurance companies may even offer Tesla-specific discounts.
How much does Tesla car insurance cost in my state?
Here are the average prices Tesla drivers paid for car insurance after switching policies through Jerry.ai:
Tesla Insurance Prices By State
- AZ $3280
- CA $2845
- CT $2142
- FL $2796
- GA $2242
- IL $1360
- MD $1758
- MN $2016
- NC $1848
- NJ $1800
- NV $2700
- NY $2296
- OH $2036
- PA $1472
- SD $900
- TN $2274
- TX $2498
- UT $1839
- VA $2397
- WA $1578
The cost of Tesla car insurance varies across the country. You may pay hundreds or even thousands of dollars more, depending on your state.
Why is that?
The answer partly comes down to one word: risk.
The greater the risk of vehicle damage or loss in your location, the more you’re likely to be charged for insurance.
Consider the following scenarios in which you may face higher premiums:
- You live in an area with a high rate of car theft and/or vandalism.
- You live in an area prone to natural disasters like hurricanes or earthquakes.
- You live in an area with high traffic density and extended commutes, which increases the odds of car accidents.
Another factor that influences Tesla car insurance rates is your state’s minimum coverage level. Insurance companies won’t permit you to get less than your state’s minimum liability.
If your state requires higher minimum coverage, you can expect to pay more for insurance.
Minimum car insurance requirements vary from state to state.
For example, the requirements in California are on the lower end — drivers there need to get $15,000 in bodily injury liability per person, $30,000 in bodily injury liability per accident, and $5,000 in property damage liability per accident.
On the other hand, there’s Michigan, which expects its drivers to buy $50,000 in bodily injury liability per person, $100,000 in bodily injury liability per accident, $10,000 in property damage liability per accident outside Michigan, and $1 million in property protection within Michigan. It also requires $250,000 in personal injury protection (PIP).
Why Teslas are expensive to insure
There are a few reasons why Teslas are among the most expensive vehicles to insure.
First of all, insurance premiums are determined in part by the cost of the car — and Teslas are priced above the national average for vehicle costs.
If you carry collision and comprehensive coverage on your Tesla, your insurance company may have to pay out its full value in the event of a total loss.
Therefore, if you own an $80,000 Tesla, you’re going to be charged more for coverage compared to someone who owns a $20,000 Honda.
The second thing to consider is that Teslas have higher repair costs. These cars are built with complex technology that require special tools.
Additionally, not all shops are qualified to work on Teslas, which means that the shops that are qualified can charge more for their services.
Then there are the costs of the parts themselves. It costs thousands of dollars to replace a Tesla Model 3 battery — up to $7,000, in fact. The aluminum used in Tesla bodies is also pricier than traditional materials like steel and plastic.
In light of this, Edmunds estimated that the total five-year cost of maintaining and repairing a Tesla Model S is over $8,300. Compare that to the five-year cost of maintaining and repairing a Honda Civic, which comes to just $3,700.
What is Tesla Insurance?
The high cost of Tesla car insurance has been a source of frustration, not only for drivers but for the car manufacturer.
CEO, Elon Musk believes that premiums should be lower because of Tesla vehicles’ high safety ratings. The Tesla Model 3 has earned the Insurance Institute for Highway Safety’s “Top Safety Pick+” designation for several years.
That is why Tesla started offering its own coverage to drivers in 2019 under the Tesla Insurance program.
Technically, Tesla is now a licensed broker providing coverage via State National Insurance. The program is only available to drivers in California for now, but there are plans to expand coverage to other states.
Be aware that rideshare drivers don’t qualify for coverage under Tesla Insurance. The company is said to be working on a separate car insurance policy for commercial vehicles, which would include those operated by Lyft and Uber drivers.
Will Tesla Insurance lower costs?
You may be able to enjoy lower Tesla car insurance costs through this program, but it’s still recommended that you shop around for cheap car insurance quotes. Comparing car insurance quotes is a great way to find savings.
Tesla Insurance takes a three-pronged approach to reducing costs for drivers:
Lowering repair costs: To keep repair costs down, Tesla promises to fix vehicles internally at a fraction of the cost charged elsewhere. This may keep down the cost of collision and comprehensive coverage.
Offering an Autopilot discount: This discount can reduce the cost of your liability, medical payments (MedPay), and collision coverages by up to 30%. It’s based on your Tesla’s level of autonomous driving capability, with 0 being the lowest autonomy level and 5 being the highest.
Reducing commissions: Tesla charges lower commissions on its insurance products compared to traditional insurers, and these savings get passed on to drivers.
Tesla Insurance discounts
Tesla car insurance comes with a range of possible discounts. You may qualify for some of the following:
- Multi-policy discount
- Group rate discount
- Loyalty discount
- Good driver discount
- Anti-theft device discount
- Airbag discount
- Mature driver improvement course discount
Tesla Insurance special coverages
Beyond the standard coverage types, drivers can also choose to purchase add-on coverages for greater protection. These include:
Autonomous vehicle owner liability coverage: This form of coverage is exclusive to Tesla Insurance. If your car gets into an accident while running on autonomous-vehicle mode, you’ll be offered liability coverage for both bodily injury and property damage.
Cyber identity-fraud coverage: Teslas are connected to a cyber network that is at risk of being hacked. If your information is stolen, this coverage will pay you up to $15,000 for identity-fraud losses per incident and up to $30,000 per policy period.
Electronic key replacement: This coverage offers up to $500 per loss for your keys. You can file two claims per policy period.
Wall charger coverage: This covers up to $3,000 for loss or damage of the power charger. You can use this coverage as long as the damage isn’t the result of a manufacturer defect or your negligence.
Frequently asked questions about Tesla car insurance
Why can a fender bender cost a Tesla owner $7,000 to repair?
Some Tesla owners have reported that it cost them $7,000 to repair a small dent after a minor fender bender.
What’s behind this outrageous figure?
First off, Tesla structures and body panels are made mostly of aluminum, a material that’s harder to work with than steel and more expensive to repair.
You also have to factor in higher training and equipment costs for Tesla-authorized repair shops, which translate into greater labor costs. These are passed on to drivers, and car insurance companies charge more expensive premiums due to the higher costs of parts and labor.
Why are Tesla parts so expensive?
Tesla parts are expensive for several reasons:
- The aluminum in the bodies, which is harder and pricier to repair
- The electronic components and other high-tech parts, which are unique to Tesla
- The high labor costs for repair and maintenance, which are a result of extensive training and specialized equipment
- The lack of used cars to salvage parts from, as Teslas are still relatively new to the market
How to find Tesla car insurance quotes
The surest way to find affordable Tesla car insurance is to shop around and compare car insurance quotes.
It’s easiest to do this online, where you can visit the websites of various insurers, enter your information, and gather several quotes.
But there’s an even easier and faster alternative to jumping from website to website — you can get cheap car insurance quotes by signing up for Jerry.ai.
It’s a free app that finds you the coverage you want for the best price by comparing offerings from dozens of insurance companies.
If you want to switch to a more affordable plan, Jerry handles all the paperwork to set up your new policy and cancel your old one. And it continues to comparison shop for you, sending you new quotes every time your policy comes up for renewal.
If you want cheap car insurance for your Tesla, try Jerry. It takes less than a minute to sign up, and once you do, the app does all the hard work for you.