TESLA CAR INSURANCE: Coverage, Cost & How to Get

TESLA CAR INSURANCE: Coverage, Cost & How to Get
Image Credit: user6702303 on Freepik

We have broken down the cost of Tesla car insurance in this article. To assist you in finding the finest coverage for your needs and to safeguard your electric vehicle, we have also conducted research on the top auto insurance providers.

What is Tesla Insurance?

Tesla Insurance calculates insurance prices using information gathered from Tesla’s safety features, Autopilot, and total car data. 

Through its seamless integration with Tesla’s ecosystem, Tesla Insurance seeks to make the insurance process easier for Tesla owners. Like standard auto insurance policies, the insurance coverage covers liability, collision, and comprehensive coverage.

Currently, owners of Tesla vehicles can obtain insurance in the following states:

  • Arizona.
  • California.
  • Colorado.
  • Illinois.
  • Maryland.
  • Minnesota. 
  • Nevada.
  • Ohio. 
  • Oregon. 
  • Texas. 
  • Utah. 
  • Virginia. 

Note that both new and existing Tesla owners can get coverage for both their Teslas and non-Tesla vehicles with Tesla insurance. Furthermore, you can obtain Tesla insurance in California even if you don’t own a Tesla.

How does Tesla Insurance work?

For the majority of its vehicles, Tesla bases your auto insurance quote on your driving behavior in real-time. With the exception of California, it is offered for the Model S, 3, X, and Y in every state that offers Tesla Insurance. Tesla Insurance is still available to drivers in California, but prices won’t be determined by your driving style.

Without the need for a separate app or plug-in gadget, Tesla is able to gather information about your driving behavior through your Tesla vehicle.

Tracked driving behaviors consist of the following:

  • Number of forward-collision warnings.
  • Hard braking.
  • Excessive speeding.
  • How close are you to the car in front of you?
  • How often do you drive late at night?

Tesla uses the following factors to determine a rate:

  • Your vehicle’s safety score
  • Miles driven.
  • Where do you live?
  • Vehicle make and model.
  • Coverage purchased.
  • Number of vehicles insured.

Is Tesla insurance worth it?

If you reside in one of the states where plans are offered, Tesla Insurance is worth a look. The organization provides collision, comprehensive, and liability coverage in addition to glass damage coverage. In addition, Tesla provides roadside assistance and gap insurance.

State-by-state variations exist in terms of savings and additional coverage.

It is not a given that Tesla will provide you with the best deal, even if you are eligible for one or more insurance reductions. When you locate the most economical policy, be sure you compare auto insurance providers.

Tesla Car Insurance coverage

Your state’s minimum requirements and the area in which you reside will determine whether you require personal injury protection (PIP) or uninsured motorist coverage. For added security, auto insurance providers also provide a range of add-on coverage. Among these extra coverage options are:

#1. Mechanical breakdown insurance (MBI)

In the event of a mechanical malfunction, a variety of parts on your car are covered by this optional protection. It resembles an extended vehicle warranty.

#2. Guaranteed asset protection insurance

Often referred to as gap insurance, this pays the difference in the event of a total loss between the value of your car and the amount you owe on it. A lot of lenders demand this insurance.

#3. New car replacement

This coverage option replaces your old car with a new one if your new Tesla is totaled within a certain time frame.

Tesla Car Insurance Cost 

The average annual premium for Tesla auto insurance is $268 monthly, or slightly over $3,000. But purchasing insurance for a Tesla doesn’t always have to be costly. 

If you want to save money on auto insurance, think about getting the more reasonably priced Tesla Model 3 and going with Allied or Nationwide, as they have the lowest average insurance costs for this specific model. Infinity, State Farm, and Erie are usually better choices for more expensive versions. 

Best Tesla Car Insurance 

How much does Tesla car insurance cost by state?

Tesla car insurance rates by state for a Model 3

StateCheapest median rateCheapest insurance company
Alaska$1,892State Farm
Arkansas$1,587State Farm
Colorado$1,119American National
Delaware$2,066State Farm
Florida$1,797State Farm
Georgia$1,463Central Insurance
Hawaii$1,514State Farm
Idaho$664American National
Illinois$1,131Hastings Mutual
Indiana$793Hastings Mutual
Iowa$905Hastings Mutual
Louisiana$2,168Southern Farm Bureau Casualty
Maryland$1,762Penn National
Massachusetts$1,400Preferred Mutual
Michigan$1,362Hastings Mutual
Missouri$1,704Missouri Farm Bureau
Nebraska$761American National
Nevada$1,538State Farm
New Hampshire$756The Hanover
New Jersey$1,678NJM
New Mexico$1,261Central Insurance
New York$1,858Erie
North Carolina$1,061Titan
North Dakota$1,218Nationwide
Ohio$692Hastings Mutual
Oklahoma$1,891State Farm
Rhode Island$1,869Quincy Mutual
South Carolina$742American National
South Dakota$1,141Kemper
Tennessee$1,499Penn National
Texas$921Redpoint County Mutual
Vermont$897Union Mutual
Virginia$968Virginia Farm Bureau
Washington DC$1,450Erie
West Virginia$1,914State Farm
Wisconsin$1,058Hastings Mutual
Wyoming$716American National

The Cheapest Tesla car insurance

CompanyMedian annual rate
1. State Farm$2,033
2. Travelers$2,083
3. Nationwide$2,496
4. American Family$2,619
5. Progressive$3,130
6. USAA*$1,404
Credit: Nerdwallet

2022 Tesla Model 3 Insurance Cost

Car Insurance ProviderEstimated Monthly CostEstimated Annual Cost
State Farm$176$2,107
Auto-Owners Insurance$180$2,155
Erie Insurance$190$2,281
American Family Insurance$263$3,152

2021 Tesla Model 3 Insurance Cost

Car Insurance ProviderEstimated Monthly CostEstimated Annual Cost
State Farm$170$2,039
Auto-Owners Insurance$171$2,053
Erie Insurance$173$2,077
American Family Insurance$229$2,753

2020 Tesla Model 3 Insurance Cost

Car Insurance ProviderEstimated Monthly CostEstimated Annual Cost
Auto-Owners Insurance$164$1,971
State Farm$169$2,029
Erie Insurance$171$2,054
American Family Insurance$225$2,703

2019 Tesla Model 3 Insurance Cost

Car Insurance ProviderEstimated Monthly CostEstimated Annual Cost
Auto-Owners Insurance$123$1,480
Erie Insurance$127$1,529
State Farm$142$1,705
American Family Insurance$162$1,946

2018 Tesla Model 3 Insurance Cost

Car Insurance ProviderEstimated Monthly CostEstimated Annual Cost
Erie Insurance$136$1,638
State Farm$148$1,776
Auto-Owners Insurance$154$1,850
American Family Insurance$216$2,594

How to Get Tesla Car Insurance

Comparing auto insurance quotes from several companies is the ideal approach to locate affordable coverage for your Tesla Model 3. Most large insurers usually offer free quotations online, which simplifies the process of comparing rates.

The most economical coverage is usually available from USAA for the 2018–2022 model years. However, only active military personnel, veterans, and their immediate families are eligible for USAA auto insurance coverage. For other drivers, affordable Tesla Model 3 insurance options include Nationwide, State Farm, Erie Insurance, and Auto-Owners Insurance.

Is Tesla expensive to insure?

The cost of insurance increases with the value of your vehicle. Your insurance company will have to pay more to replace or repair your Tesla than they would for a less expensive car if it is stolen or damaged. As a result, you will pay extra for Tesla vehicle insurance from insurers, particularly for comprehensive and collision coverage. 

What kind of insurance does Tesla offer?

Tesla insurance plans cover the following: Autonomous vehicle liability, which provides the same limits of liability coverage for property damage and personal injury resulting from collisions while your car is operating in autonomous mode as it does during your driving,

Is Geico good for Tesla? 

For Tesla Model 3, Model X, Model S, and Model Y drivers, GEICO offers the best and most economical auto insurance, guaranteeing premium protection at reasonable prices.

What happens when a Tesla gets into an accident? 

Tesla advises taking your car to one of the Tesla-Approved Collision Centers in your area. To receive collision help, locate a Tesla location. You may get all the information you need to report an event and submit a claim by using the Tesla app.

Is Tesla insurance paid monthly?

Tesla bases the assessment of your premium on the way you actually drive the car by utilizing certain features. Rather than standard characteristics employed by other insurance carriers, such as credit, age, gender, claim history, and driving record, your monthly payments will be determined by your driving behavior.

Does Tesla come with its own insurance?

Tesla Insurance is a car insurance program that it offers to Tesla owners in a few US states at rates that are competitively priced. Tesla automobiles are very new to the market and use proprietary technologies for their electric vehicles, which not all auto mechanics are familiar with.

Who has the cheapest car insurance for Tesla? 

The cheapest coverage for the Tesla is available through USAA, with an average estimated cost of $1,543 annually or $129 monthly. If you aren’t eligible for USAA insurance, Nationwide is the least expensive alternative; on average, it costs $1,835 annually or $153 monthly.

Why is GEICO not paying claims on Tesla? 

None of the Tesla-certified body shops in Phoenix will accept GEICO drivers since the insurance provider won’t cover the true cost of fixing a Tesla. This may be because of the high cost of repairing a Tesla car.

Why do Tesla cars get totaled so easily?

Declaring the vehicle destroyed and sending it to the scrapyard is frequently less expensive than restoring it to working order due to the abundance of technological features such as sensors and cameras in the car, in addition to highly specialized parts that can only be fixed by Tesla or one of its approved body shops.

Why is it hard to insure Tesla? 

Since Tesla vehicles are expensive to purchase and maintain, their insurance costs are also high. Due to their higher repair and maintenance expenses than other luxury or electric vehicles, Teslas have particularly high collision coverage costs. Only body shops approved by Tesla are able to repair Tesla vehicles.

What is the life expectancy of a Tesla?

The Tesla website states that a Tesla battery can last between 300,000 and 500,000 miles, or 22 to 37 years, throughout the course of its lifetime. However, most estimates place the actual lifespan closer to 8 to 12 years.

What kind of coverage do I need for my Tesla?

Most states require drivers to carry liability insurance, which covers damages and injuries you may cause to others in an accident. 34% of The Zebra’s customers opt for better liability limits at 50/100/50 as well as full coverage included with towing and rental car benefits. This is wise considering the cost of Tesla vehicles and the unique nature of their maintenance and advanced technology.

Is Tesla insurance cheaper?

According to Tesla, their in-depth knowledge of their product enables them to provide insurance with special features like coverage for electronic key replacement at a reduced price. 

The real cost will depend on a number of variables specific to your car and driving style. To make sure you are getting the best deal and coverage for your particular needs, we advise you to get an estimate from Tesla and compare it with quotes you receive from other insurance companies.


Electric Car Insurance: How Does It Work?





Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like