Best Auto Insurance Companies for Teslas (2024)

If you own a Tesla or are considering buying one, you may wonder how much car insurance for a Tesla costs. Coverage for a Tesla varies from one area to the next, and finding coverage may be easier in some locations than others. For example, it may be harder to find cheap Louisiana auto insurance for a Tesla than in Maine.

You’ll need to find and compare quotes from the best auto insurance companies for Teslas to learn how much Tesla insurance is in your area. Comparing quotes can help you get the coverage you need without paying too much for your auto insurance.

Tesla offers several different models, but the Model 3 is the most affordable option with the brand. If you have a Tesla Model 3 or are considering getting one, you’ll want to know more about coverage options where you live.

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How much is insurance for a Tesla Model 3?

Tesla Model 3 auto insurance, or insurance for any other vehicle make and model, varies from state to state. Insurance companies consider several factors when determining a person’s insurance rates, and some companies may offer cheaper coverage than others. Find out the factors that affect auto insurance rates.

The average insurance cost for a Tesla Model 3 is just over $2,500 annually or $212 each month. Still, rates from specific companies differ significantly in certain cases.

The average annual cost for Tesla insurance with Nationwide is $1,575 annually or $131 per month. Travelers offer coverage for $1,957 annually or $163 a month. So, both companies offer coverage for less than the average cost of Tesla insurance.

Geico’s coverage for a Tesla Model 3 is significantly more expensive than Nationwide and Travelers. With Geico, you’ll pay around $2,742 annually or $229 each month for Tesla auto insurance. However, Allstate is one of the most expensive options for Tesla Model 3 auto insurance. 

With Allstate, you’ll pay around $3,400 annually or $283 monthly for Tesla coverage. Remember that these rates consider a 30-year-old driver with a clean driving record. You may pay more for coverage if you’re a young driver or have traffic violations on your driving record.

Do Tesla auto insurance rates vary by state? 

Auto insurance coverage for a Tesla varies based on where you live, so rates also vary. Some states require a higher level of auto insurance coverage, while others allow drivers to purchase less insurance. Certain states also have a higher cost of living.

Depending on where you live, you may pay much more than the national average for coverage on your Tesla Model 3.

California and Louisiana have the highest rates for Tesla car insurance. In California, you’ll pay around $3,662 a year or $305 monthly for Tesla car insurance. Rates in California are roughly 44% higher than the national average for Tesla coverage.

However, California is much less expensive than Louisiana. In Louisiana, you’ll pay $4,364 annually or $364 every month for car insurance. Louisiana rates are 71% higher than the national average for Tesla auto insurance.

Still, some states offer auto insurance coverage at lower-than-average rates. If you live in Maine, Vermont, or Idaho, insuring your Tesla will be cheaper.  

Rates for Tesla coverage in Maine are around $1,643 annually or $137 each month. Vermont coverage costs around $1,629 a year or $136 per month. Auto insurance in Idaho for a Tesla Model 3 costs roughly $1,581 annually or $132 monthly. 

You could pay higher coverage rates if you have a different Tesla model. Additionally, each state has cheaper and more expensive areas regarding auto insurance, since providers determine auto insurance rates by ZIP code. Therefore, if you live in a larger city, you could have higher rates than your statewide average for Tesla car insurance.

Do rates for Tesla coverage vary based on age?

Your age may impact your car insurance rates, especially if you’re a teen or young adult driver. Insurers charge young drivers higher rates since they’re inexperienced, and more likely to get in an accident and file a car insurance claim. Find out the average auto insurance rates by age.

The cheapest age to insure a Tesla Model 3 is around 60. Men and women pay around the same amount for Tesla auto insurance from age 30. 

If you’re 20 or under, your Tesla insurance will be much more expensive, though the exact number varies based on where you live and whether you can add yourself to a parent or guardian’s policy.

A 60-year-old driver will pay around $2,107 annually or $176 each month for car insurance. However, a 20-year-old seeking Tesla auto insurance will pay more than double. Rates for a 20-year-old driver are around $5,080 annually or $423 per month. 

If your Tesla insurance rates are too expensive, you could lower them in a few different ways.

Some companies allow you to take a safe or defensive driving class. Once you pass a course, you could be eligible for lower auto insurance rates. Additionally, many car insurance companies offer auto insurance discounts to help you save as much as 25% on your Tesla auto insurance policy. 

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How do Tesla Model 3 rates compare with similar cars?

While insurance rates for your Tesla may seem steep, they’re consistent with many other vehicles considered similar models.

The average cost to insure a Jaguar I-Pace is $2,633 annually or $219 per month, just $7 more monthly than the Tesla Model 3. A Mercedes-Benz C-Class costs around $2,317 annually or $193 per month to insure. Coverage for a Volvo Polestar 2 costs $2,912 annually or $243 each month.

Which insurance companies offer the cheapest Tesla coverage?

As stated earlier, coverage rates for your Tesla vary based on your age, location, driving record, credit history, and more. You won’t know how much you’ll pay for car insurance coverage until you shop online and compare auto insurance rates from multiple companies.

Nationwide auto insurance and Travelers auto insurance provide the best insurance for Tesla Model 3 insurance. State Farm auto insurance costs around $1,756 annually or $146 per month for coverage, making it an affordable option as well. 

Geico auto insurance and Allstate auto insurance are among the most expensive options for Tesla car insurance coverage. Still, compare quotes from several insurance companies to see which offers you the best deal.

Is Tesla insurance a good option?

Tesla started an auto insurance option in 2019. According to the company, Tesla owners can save around 20% on their insurance by purchasing coverage with the Tesla company. Tesla auto insurance policies are available in the following U.S. states:

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

If you’re a Tesla owner, you can purchase Tesla auto insurance on your Tesla. The company also offers car insurance coverage to Tesla owners for their non-Tesla vehicles.

How does Tesla auto insurance work?

In every state except California, Tesla uses a telematics-based system to assess drivers’ habits and award them specific rates. Tesla monitors drivers’ habits to determine how safe they are on the road, including:

• Hard braking
• Acceleration
• Sharp turns
• Speeding
• Tailgating
• Distracted driving
• Forward-collision warnings

If you drive safely, obey traffic laws, and avoid distracted driving, your Tesla car insurance rates could be cheap. However, you could pay higher-than-average rates with the company if you have poor driving habits. Learn more about usage-based auto insurance and telematics systems.

In addition to the safety factors Tesla monitors, the company offers rates based on the following factors:

• Miles driven
• ZIP code
• Vehicle make and model
• Coverage type
• Number of vehicles insured

Tesla doesn’t offer rates for its car insurance coverage online, so you won’t know if the company offers cheap coverage until you speak with a representative about your Tesla car insurance options. 

Is Tesla insurance worth it?

Tesla insurance may be a great investment if you live in a state offering Tesla coverage. While the company doesn’t list its average rates online, it says Tesla owners can save significantly on their insurance coverage by using the Tesla company for their policies.

If you live in a state where Tesla coverage is unavailable, you’ll need to find coverage with another company. Compare quotes from several options to see which works best for you based on your needs and budget.

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Why is Tesla auto insurance so expensive?

Teslas are fairly expensive, and your coverage will also be more expensive when you drive a pricey vehicle. Insurance companies factor in repair and replacement costs when determining their policyholders’ rates. 

How much is a Tesla?

The Tesla Model 3 is Tesla’s most affordable option. Tesla Model 3s start at around $47,000. A Model Y starts at $63,000, a Model S starts at $100,000, and the Tesla Model X costs around $115,000.

Tesla Repair Costs

Teslas consist of fairly expensive parts, and replacing or repairing them can cost a great deal. For example, a Tesla Model 3 battery module costs anywhere from $5,000 to $7,000 on average to replace.

If you want to buy a Tesla, consider the repair costs.

Tesla Auto Insurance: The Bottom Line

Several companies offer car insurance coverage for Teslas, but the costs for coverage vary significantly. Since Tesla insurance average costs can be fairly expensive, shop online and compare quotes from multiple companies before making a final decision on your Tesla auto insurance coverage.

As you compare rates, remember that your age, ZIP code, gender, marital status, driving history, and credit score impact your car insurance rates. To find the best auto insurance companies for Teslas, take your time and research multiple policies with different companies.

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