Average Insurance Costs for 5 Tesla Models — They Might Surprise You

©Tesla

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

EVs can lower long-term ownership costs by eliminating expensive trips to the pump, but higher insurance premiums can gobble up those gains. 

According to Progressive, the cost of coverage for electric vehicles tends to be higher than for gas cars because their components are more expensive to repair and replace, and fewer repair shops and technicians are qualified to work on them.

Most EVs, however, are subject to the same risk-based variables that influence premiums on any vehicle — driving history, location, credit history, age, gender, claims history, vehicle make and model, and the cost of the car.

However, Tesla vehicles don’t always follow those rules. Here’s a look at the five models in the Tesla lineup and their sometimes surprising average insurance costs.  

Cybertruck

• Starting MSRP: $79,990
• Average annual insurance cost: $3,392

Anyone who sees a Cybertruck can’t possibly mistake it for any other vehicle on the road — in terms of its post-apocalyptic aesthetic, unconventional is an understatement.

But despite being tied for the most expensive vehicle in the Tesla lineup, it’s the cheapest of the bunch to insure. Coverage for the average Cybertruck is 22% less than that of the Model 3 despite the former costing 60% more than the latter.

According to Insurify, that has more to do with the typical driver than the vehicle itself. 

Cybertruck drivers are nearly twice as likely to have excellent credit than the average EV driver. They’re also much more likely to be in their 40s, both of which reduce risk in the eyes of insurance providers.

However, the robust vehicle’s unique characteristics also lower rates with insurance-friendly features like windows with a class-4 hail rating and a dent-resistant steel body.

Model S 

• Starting MSRP: $74,990
• Average annual insurance cost: $3,510

According to Insurify, Model S drivers are roughly half as likely as Cybertruck owners to have excellent credit — but they’re about twice as likely as the typical driver nationwide across all models. That contributes to its ranking as the No. 2 cheapest Tesla to insure despite being the No. 2 most expensive to buy — the Cybertruck and Model X are tied for first.

Even so, it costs much more to insure the Model S than the national average of $2,336 for all vehicles. 

According to car insurance data platform Compare.com, the extraordinary specs of the Model S contribute to its high cost of coverage — over 1,000 horsepower and sub-two-second 0-60 acceleration make insurers wince.

Model X

• Starting MSRP: $79,990
• Average annual insurance cost: $3,658

The entry-level Model X costs just as much as the Cybertruck — and a high purchase price equals high insurance costs.

Despite MSRP parity, coverage is more expensive, in part, because only about half of Model X drivers have excellent credit compared to two-thirds of Cybertruck drivers.

However, like the Model S, much of the Model X’s comparatively high cost of coverage comes down to its specs. Sub-10-second quarter-mile vaults and 2.5-second 0-60 acceleration made possible by 1,020 horsepower make for unforgiving risk-assessment analyses.

Model Y

• Starting MSRP: $44,990
• Average annual insurance cost: $3,852

The Model Y is one of just two affordable vehicles in the Tesla lineup, but “affordable” is a relative term. 

Starting at around $45,000, you can get an Audi Q3 or Lexus NX for thousands less than a Model Y. On top of its entry-level luxury price, it joins all Teslas in hosting advanced technology and premium materials that are expensive to replace and repair and, therefore, to insure. 

Model 3

• Starting MSRP: $42,490
• Average annual insurance cost: $4,347

Tesla turns the laws of the insurance universe on its head. Just as the most expensive model, the Cybertruck, has the lowest average insurance costs, the Tesla with the lowest MSRP, the Model 3, comes with the highest premiums. 

That probably has more to do with the drivers they attract than with the cars themselves. 

According to digital marketing agency Hedges and Company, Tesla 3 drivers tend to be younger — and have less established and therefore riskier driving histories — than those who choose the pricier models. Also, Insurify data shows that just 13% of Model 3 drivers have excellent credit, compared to 35% of EV drivers overall.

Share This Article: