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Car insurance for Teslas

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Car insurance for Teslas is like car insurance for any other car, except you may need more coverage because they're so high-tech. We found that the average cost of insuring a Tesla Model 3 was $2,555.76 a year.

Anna Swartz 1600Stephanie Nieves author photo

By

Anna Swartz

Anna Swartz

Insurance Expert

Anna Swartz is a Managing Editor at Policygenius, specializing in auto insurance. Her work has appeared in Mic, The Dodo, AOL, MSN, HuffPost, Salon and Heeb.

&

Stephanie Nieves

Stephanie Nieves

Property and Casualty Insurance Expert

Stephanie Nieves is an insurance editor at Policygenius in New York City, specializing in home and auto insurance. Her work has appeared in Business Insider, PayScale, Fairygodboss, and The Muse.

Updated August 13, 2021|5 min read

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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.

Because the technology in a Tesla is so advanced, and the build so complex to repair, you’ll need to purchase more car insurance 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, but so far it’s only available for California drivers.

Key Takeaways

  • Teslas typically cost more to insure than other cars because of their pricey, high-tech parts

  • The average cost of insuring a Tesla Model 3 is $2,555.76 a year, or $212.98 a month

  • Tesla currently offers their own Tesla Insurance, and is now selling policies in California

How much does insurance cost for a Tesla?

Due to their innovative features and high repair costs, Teslas typically cost more to insure than most other vehicles, including SUVs, minivans, and hybrids. The average cost of auto insurance in the U.S. is roughly $1,190 per year (or $99 a month), but car insurance for a Tesla can cost much more than average.

Based on quotes from popular, national insurers for a 40-year old driver in Scottsdale, AZ with a clean driving record, the average cost of insuring a Tesla Model 3 was $2,555.76 a year, or $212.98 a month. Obviously this will be different for every driver, since car insurance premiums are based on everything from your age to your driving record to whether you own or rent your home, but you can expect to pay more for insurance on a Tesla than you would for a standard sedan or SUV.

Car insurance for a Tesla

Whether you decide to go with Tesla’s insurance or buy a different policy, you’ll want to make sure your car is fully protected when you’re on the road. You can purchase a full-coverage policy, which includes more than the minimum requirement of insurance in your state and offers protection for your car along with any injuries and other property damage that result from the accident: 

  • Liability coverage: This pays for medical expenses and vehicle repairs if you cause an accident with someone else

  • Comprehensive coverage: This covers damage that can happen to your car when you’re not driving, like vandalism or fire, but it can also cover hitting a deer

  • Collision coverage: This pays to repair your vehicle if it’s damaged in a collision with another driver

  • Personal injury protection: If you and your passengers sustain injuries in an accident, PIP will cover your medical expenses, regardless of who caused the accident

  • Uninsured/underinsured motorist coverage: This pays for your medical expenses and vehicle repairs if you get into an accident with someone who has little to no insurance

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Who insures Tesla cars?

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 companies 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:

Why are Teslas so expensive to insure?

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, whose parts are more widely available and easier to replace. 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 your luxury-vehicle premiums to match. Tesla cars are also:

  • Made out of more expensive parts than most other vehicles, thereby more expensive to repair

  • Limited to a set of Tesla-approved body shops because of the training and equipment needed to replace certain parts

  • More expensive to insure depending on where you live and other rating factors

What insurance does Tesla offer?

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?

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.

Frequently Asked Questions

Does insurance go down with Tesla?

Tesla Insurance says it's competitively priced, offering up to 30% lower rates than other insurance companies. But Tesla insurance isn’t offered in most states. Even if you can save on insurance for your Tesla, maintenance may still cost a lot since it involves more expensive parts than most other vehicles, and Teslas are limited to Tesla-approved body shops where mechanics are trained to use specific equipment to replace certain parts.

What happens if my Tesla runs out of charge?

When your Tesla starts running out of charge, it will send you multiple notifications to let you know, as well as speed recommendations to save on battery. Your Tesla will also suggest locations for the nearest charger and let you know when you’re driving out of range. If your Tesla runs out of battery on the road, call a flatbed truck to pick it up and take it to a charging station.

Should I charge my Tesla every night?

No, according to the company, you should not charge your Tesla overnight because it can shorten the lifespan of your car’s battery pack. There are multiple ways to charge your Tesla, from plugging into a wall outlet to installing a special charger in your garage. You should check with the manufacturer if you have questions about charging your car.