Key takeaways:

• The model matters: Tesla’s more affordable Model S and Y vehicles may be cheaper to insure than its luxury models.
• Because Tesla sells technologically advanced electric vehicles, they may be more expensive to insure than other cars, including EVs.
• If you’re planning to buy a Tesla, leave room in your budget for monthly, semi-annual or annual car insurance costs.

Tesla transformed electric vehicles from a niche market to a mainstream force. The manufacturer wins customers with its futuristic design, focus on performance, sustainable energy solutions and advanced battery technology. 

But drivers pay for the innovation — both at the dealership and once they drive off the lot.

While Tesla drivers save on gas, car insurance rates can be above average due the high costs associated with owning an electric vehicle and repair complexity. Whether you’re an old school Model S driver or plotting your new Model Y purchase, here are Tesla car insurance rates and tips to help you shop for coverage.

How much does Tesla car insurance cost?

The cost to insure a Tesla depends on the model, year and other major factors like your driving history, location, age and desired coverage level. Expensive vehicles have expensive parts and, as in Tesla’s case, may be more complex to repair, which drives up insurance costs.

Because your vehicle is one of the many factors that insurance companies use to determine your premium, it’s wise to compare quotes from multiple providers. You’ll likely need full coverage if you lease or finance a Tesla.

Jerry insight:Tesla offers its own auto insurance. The manufacturer claims that its insurance pricing weighs driver behavior, which it detects using technology built into its cars, more heavily than other insurers. It’s worth your time to get a quote from Tesla, but weigh the pros and cons of behavior-based car insurance pricing before you buy.

Here are the average rates that Tesla owners have been quoted for full coverage car insurance, according to Jerry’s data.

If you have a loan or lease on your vehicle, the lender will require full coverage. You may also need gap insurance, which can help you pay off your loan if your car is totaled.

When they price your policy, auto insurers consider safety features, as well as the cost to repair or replace parts.

With their high-tech systems and notoriously difficult-to-source parts, Teslas can be costly to insure, but the model you choose can significantly affect your rate. Here are some attributes that affect your Tesla insurance premium.

• Safety features: Teslas come with advanced safety features like park assist, which alerts drivers when an object is nearby as they’re parking, and automatic emergency braking. These features may result in discounts from some insurers, but if the tech is costly to replace they can also drive up premiums.
• Vehicle class: The Model X, an SUV, costs more than the Model 3 sedan, and is therefore likely more expensive to insure.
• Engine size: The Model X Plaid boasts 1,020 horsepower, while the Model 3 Performance edition comes in at just over 500 horsepower. Insurers consider more powerful engines to be riskier, which shows up in your premium.
• Availability of replacement parts: If problems arise after you visit a non-Tesla mechanic for repairs, your warranty may be affected. This policy discourages drivers from shopping for more affordable repairs. It also leads to a limited number of suppliers for both parts and repairs, all of which add to your bill.
• Cost of repairs: Since Teslas rely on expensive parts like lithium-ion batteries, your insurer will likely charge extra to offset any claims they may have to pay out.
• Luxury model: Not all Teslas are luxury cars, but those that are often cost more to insure.

Cheapest car insurance companies for Teslas

Any time you buy a new vehicle, it’s wise to get multiple car insurance quotes. As with most purchases, the first estimate may not be the cheapest, and if you haven’t owned a Tesla before you may not have a baseline for what a “good” rate is.

Full coverage is usually the best option if you’re planning to buy a later model, not just because a lender would require it, but because it will almost certainly save you money if your car is damaged. This coverage includes at least state-mandated liability insurance levels, as well as collision and comprehensive coverages. You’ll pay a deductible before your insurance kicks in, but on a pricey vehicle like a new Tesla, the deductible can be a fraction of the repair cost.

These are the average rates that different insurers have quoted Tesla drivers for full coverage. 

Let’s say you want to save money and carry only the legally-required coverage for your state — the least you can pay to drive off the lot, assuming you aren’t leasing or financing the car. Your coverage would pay others’ expenses if you cause an accident, but you’d pay out-of-pocket for any repairs to your own vehicle — generally a lot more than the insurance would cost. 

For this reason, the minimum coverage is usually recommended for older used vehicles that are cheaper to fix, or that you may not fix at all.

Learn more: Liability vs. full coverage insurance

Here are the average rates that insurers have quoted Tesla drivers for minimum coverage.

Tesla Model 3 insurance costs

The Model 3 is Tesla’s base model, but the manufacturer didn’t skimp on the features. The vehicle comes with a 15-inch touch screen, 360-degree visibility and the ever popular “camp mode,” which keeps cabin temperature stable and entertainment features on all night. The Long Range battery configuration costs $42,490 MSRP and the Performance configuration starts at $54,990, according to the manufacturer. Though the Model 3 is Tesla’s most affordable vehicle, those prices are higher than some other makes and models, meaning drivers can expect comparable insurance costs.

Here is the average rate that Jerry customers have been quoted for the Model 3.

Tesla Model S insurance costs

The Model S is Tesla’s high-end sedan. Not only is this one of the fastest electric cars available, the Model S also boasts up to 410 miles of range and a spacious cabin. The vehicle’s functionality, combined with novelties like Tesla Arcade, multi-device bluetooth and the ability to reduce road noise, add to the car’s price tag. The basic Model S is $79,990 MSRP, while the higher-powered Plaid configuration starts at $94,990. 

As a luxury car with a high-powered engine, drivers can expect to pay more to insure the Model S than they would for a more basic vehicle. 

Here are the average rates that Jerry customers have been quoted for the Model S.

Tesla Model X insurance costs

Tesla’s Model X is the manufacturer’s flagship SUV. This model can seat up to seven passengers, includes a panoramic windshield and the trailer hitch comes standard. The 17-inch touchscreen and 360-degree visibility add a lavish feel to the functional car.

At $84,990 MSRP for the basic configuration and $99,990 MSRP for the Plaid configuration, the Model X is the manufacturer’s most expensive SUV, meaning drivers can expect to pay a high insurance premium. The recognizable Falcon Wing doors are eye-catching and functional, but your local mechanic may not have the parts or expertise to fix them if they’re damaged, which could add to your insurance rate. 

Here is the average rate that Jerry customers have been quoted for the Tesla Model X.

Tesla Model Y insurance costs

The Model Y is spacious like a Model X but sits more in the Model 3’s price range — a combination that made it the world’s best-selling vehicle in 2023, according to automotive analytics firm JATO Dynamics. One of the biggest perks this SUV offers is the optional third row of seats, making it a practical family car in a techy Tesla wrapper.

With a sticker price of $51,490 for the Performance configuration and $59,990 for the Long Range configuration, the Model Y’s price is comparable to other electric SUVs. This means your premium could be on the more affordable side. 

Here’s the average rate that Jerry customers have been quoted for the Model Y.

How to lower Tesla car insurance costs

Here are some ways to lower your Tesla car insurance rate:

• Get multiple quotes: Comparison shop for insurance coverage to determine the best price for your desired coverage level.
• Research rates before you buy: If you’re buying a Tesla, research insurance rates for different models ahead of time. Knowing roughly how much you’ll spend on insurance can help you budget for the monthly car payment.
• Bundle your insurance policies: Some insurers offer rate discounts when you bundle your home and auto insurance.
• Participate in a telematics program: Some insurance companies use technology to track your driving habits. You could qualify for car insurance discounts if you show you are a safe driver.
• Take a defensive driving class: Your insurer may offer a discount for completing a safe driving course.

MEET OUR EXPERTS

Annie Millerbernd

Annie is a writer and editor at Jerry and has more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet, where she covered loans. Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California, and Texas. She holds a bachelor’s degree in journalism from the University of Minnesota.

Lacie Glover

Lacie Glover is a Lead Writer and Editor with sixteen years’ experience in the insurance category. Prior to Jerry, she spent more than a decade on NerdWallet’s content team writing, editing and then overseeing the auto insurance category, as well as dabbling in other insurance and automotive topics. Prior to her career in the online personal finance content space, Lacie spent time in the hard sciences, in clinical research and chemistry labs. She has a bachelor’s degree from Colorado State University.

Methodology

Data included in this analysis comes from policies that Jerry has quoted within the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.