Car insurance for Teslas

Car insurance for Teslas is like car insurance for any other car, except you'll need to purchase more coverage because they're so high-tech.

Zack Sigel 1600Anna Swartz 1600

Zack Sigel & Anna Swartz

Published September 3, 2019

KEY TAKEAWAYS

  • You'll need car insurance for your Tesla just like you would with any other car

  • Your Tesla may cost more to insure than other cars because of its pricey, high-tech parts

  • Tesla recently began offering Telsa Insurance, and is now selling policies in California

Tesla, the electric car company founded by tech entrepreneur Elon Musk, has quickly become one of the most recognizable electric car makers since its first car, the Roadster, hit the market in 2008. While there is now a range of electric cars available from established automakers like Nissan, Chevrolet, Ford, BMW and Audi, Tesla continues to dominate both the electric car market and the national conversation.

Tesla cars run entirely on electricity, yielding hundreds of miles on a single charge without sacrificing performance or style. An internet-connected internal computer system runs each model of the car, which gives the car such futuristic features as its self-driving Autopilot function and GPS tracking via your smartphone. Tesla drivers are likely familiar with the perks of driving one of the brand’s electric vehicles — but when it comes to getting the right car insurance for your Tesla, there are some unique factors you may have to consider.

Car insurance not only protects you against the liability you incur when you injure someone or destroy his or her property with your car. It will also reimburse you for damage to or the theft of your own vehicle. Because the technology in a Tesla is so advanced, and the build so complex to repair, you’ll need to purchase more coverage to make sure you’re not paying out of pocket in the event of a claim.

Most major car insurance companies will write policies for a Tesla, but some Tesla drivers also have the option of getting their car insurance through Tesla too. The company rolled out Tesla Insurance in the summer of 2019 — so far it is only available for California drivers.

In this article:

Can I get car insurance for my Tesla?

Getting car insurance for Teslas is the same as getting car insurance for any other make of car. The easiest way to do it is to go online and compare quotes from as many car insurers as you can, with which Policygenius and its team of representatives and experts can help. The quote you get will be a function of your age, gender, location, driving record, driving experience, and your coverage needs.

Since Tesla is a relatively new car company, many auto insurance company have only recently figured out how to cover Teslas. However, although more and more car insurance carriers offer Tesla protection, Teslas remain one of the most expensive cars to insure.

Virtually every major car insurance company will insure your Tesla. Some of those insurers include:

  • Costco/Ameriprise
  • Progressive
  • AAA
  • State Farm
  • Travelers
  • Allstate
  • USAA (if you’re a veteran)
  • Geico
  • Liberty Mutual
  • Nationwide
  • Hartford
  • Farmers
  • MetLife
  • Esurance

How much does it cost to insure a Tesla?

Because Teslas are so high-end, they are more expensive to purchase and maintain. That means car insurance for Teslas is also more expensive than that for lower-end types of cars. Although virtually every major car insurer offers Tesla coverage, the carrier may also classify your Tesla model as an exotic or luxury vehicle and assess you luxury-vehicle premiums to match.

While the cost of insurance depends on a number of factors, here are insurance quotes for a Tesla 3 for a 41-year-old man living in New Jeresy with the minimum state-required coverage from Progressive, Geico, and Liberty Mutual.

CarrierMonthly PremiumYearly Premium
Progressive$119$1,428
Geico$131$1,572
Liberty Mutual$182$2,184

According to a 2017 report from the National Association of Insurance Commissioners, the average auto insurance premium in the U.S. is around $92 a month, or $1,099 a year.

Does Tesla offer car insurance?

Tesla launched its Tesla Insurance program in August 2019, as a way for Tesla drivers to get their car insurance through the company as well, turning the whole Tesla experience into a one-stop shop. So far, Tesla Insurance is only available for California drivers, but the company has plans to expand to more U.S. states.

How does Tesla Insurance work?

So far, Tesla Insurance is available for Tesla drivers in California, whether they drive a Roadster, Model S, Model X, or Model 3. Any Tesla drivers who live in a state where Tesla Insurance is offered can request a quote as soon as they have their Tesla VIN — so even if you’ve just ordered your vehicle, you can get a quote for Tesla Insurance before your Tesla is delivered.

Like standard car insurance, Tesla Insurance allows you to add multiple drivers to the policy. Drivers can also add multiple vehicles, provided their other cars are also Teslas. Tesla Insurance won’t cover non-Tesla vehicles, and it doesn’t offer other types of property insurance to bundle with your auto policy, like other major car insurance companies do.

Tesla Insurance has the benefits of being part of the Tesla infrastructure, meaning claims may be more streamlined than they would be with a standard car insurance provider. When you file a claim with Tesla Insurance, you’ll be assigned a Tesla claims specialist who will direct you to a Tesla Body Repair Centers, where adjustors familiar with Teslas will be able to examine your car’s damage.

How much does Tesla Insurance cost?

According to Tesla, drivers can save 20% to 30% on their car insurance with Tesla’s in-house insurance. The company is able to save Tesla drivers money on their car insurance premiums because they’re already familiar with the cars — your Tesla Insurance policy will take into account the safety and tech features that are a part of your car, and doesn’t have the same associated fees that you might find with a standard car insurance provider.

As we mentioned above, Teslas may be more expensive to insure than other cars because of their high purchase costs and pricey tech features, so in-house Tesla Insurance could be a good way for Tesla drivers to save money on their policy. However, the only way to know for sure if you’re getting the best deal on car insurance for your Tesla is to do a thorough auto quotes comparison and choose the coverage that’s best for you.

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What car insurance coverage do I need for a Tesla?

Tesla currently makes three different models of car: the Model X, the Model S, and the Model 3. Although these are different types of car, ranging from mid-sized sedans to SUVs, they share most of the same basic features, chiefly their all-electric motors. For that reason, car insurance typically covers them in the same way.

The main difference between each Tesla model with regards to car insurance is that you’ll spend more to insure the larger models than you would for the smaller models, and more on the cars with more advanced technology and builds than you would on those with simpler (relative to other Teslas) components.

To get a sense of your car insurance premium, you need to figure out how much you need in each type of coverage within your car insurance. These types are:

Liability insurance

This pays for the bodily injury and property damage you cause to others. You probably won’t need more liability insurance for your Tesla than you would for other cars because there’s nothing inherently more dangerous about a Tesla than your typical sedan or SUV. However, you do need to buy at least the state minimum, and consider adding more liability coverage on top of that because medical bills and lawsuits resulting from an accident could cost you a fortune.

Personal injury protection

This pays for your medical expenses and those of your passengers that result from a car accident, regardless of who was at fault.

Collision insurance

This pays for damage to your Tesla caused by a collision. While your Tesla’s build is made of stronger material than lower-end cars, that also means that if it does get damaged, it’ll be more expensive to repair. Don’t skimp on collision insurance.

One thing to look out for is whether your policy covers genuine replacement or original equipment manufacturer (OEM) parts; that is, materials and components developed by Tesla specifically for Tesla cars. While this could raise your premiums significantly, it could mean that you’re not driving around a superior car using inferior parts.

Comprehensive insurance

Comprehensive coverage pays for damage to your Tesla caused by something other than collision with another car, like elemental damage or hitting an animal. Comp insurance may also cover your car when it’s stolen.

Teslas are stolen at a lower rate than other vehicles due to your ability to track your Tesla with a smartphone app, meaning that they’re unattractive to thieves and easy to recover. But when a Tesla is stolen and unrecovered, they’re usually chopped up for parts. Your comprehensive insurance should be high enough to protect you from this rare but wallet-squeezing eventuality.

Uninsured/underinsured motorist insurance

This pays for bodily injury or property damage suffered by you when the other driver doesn’t have enough insurance to cover his or her liability.

Gap insurance

If you purchased your Tesla on lease or loan, the car may be worth less than you owe on it due to depreciation. (Luxury cars depreciate faster than lower-end cars because they’re prized for their newness.) If the car is stolen and not recovered, comprehensive insurance usually only covers the cost minus depreciation. Gap insurance pays for the difference between the depreciated value and the amount you still owe on the lease or loan.

Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.