Car insurance for Teslas is like car insurance for any other car, except you may need more coverage because they're so high-tech.
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.
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.
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
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 $1,134 per year (or $94.50 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.
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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:
USAA (if you’re a veteran)
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 you 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
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.
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.
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.
Anna Swartz is a Managing Editor at Policygenius, where she has been since 2018. An expert in home, auto and renters insurance, she loves making tough concepts easy to understand and helping readers feel confident about their insurance options. Before joining Policygenius, she was a senior staff writer at Mic. Her work has appeared in The Dodo, AOL, HuffPost, Salon and Heeb.
Stephanie Nieves is an insurance editor at Policygenius in New York City, specializing in auto and home insurance. She's been writing about insurance, finance and financial planning since 2018, and loves helping readers get the knowledge they need to make financial decisions with confidence. Her words can also be found on PayScale, Fairygodboss, and The Muse.
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