How Much Is Tesla Insurance? Average Costs, Coverage and Savings Tips

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If you’re buying or already own a Tesla, one major cost to consider is insurance. Teslas often cost more to insure than traditional vehicles — but Tesla also offers its own insurance program that could be cheaper than going through a traditional provider. Here’s how Tesla Insurance compares to other insurers, and how it could save you money.

How Much Is Tesla Insurance?

Insurance for Tesla cars can get expensive. Here’s what the average American would pay annually for full-coverage insurance on each Tesla model, per Insurify, based on real-time quotes from its partner providers:

• Tesla Model 3: $3,816
• Tesla Model S: $3,300
• Tesla Model X: $3,876
• Tesla Model Y: $3,492

Tesla Insurance vs. Top Providers: Average Annual Costs

When it comes to insuring your Tesla, rates can vary widely based on your insurance provider and your car model.

Here is a breakdown of some of the top insurance providers and their average annual insurance price quotes for various Tesla models, per Insurify.

Whereas the averages listed above are for full coverage, the averages in the table below also include quotes for liability-only coverage.

It’s important to note that Tesla doesn’t release rate information for its own insurance program, but the company has said that it could save an average driver 20% to 40%, according to Insurance.com.

GOBankingRates calculated the rates for Tesla-provided insurance conservatively by discounting the average of the other listed insurers’ policies, per Insurify, by 20%.

What Is Tesla Car Insurance and How Does It Work?

In a nutshell, Tesla car insurance:

• Is Tesla’s own car insurance, sold directly through the Tesla app.
• Offers real-time pricing based on driving behavior.
• Is available in 12 states.

Tesla launched its car insurance service in August 2019, pledging to give drivers up to 20% cheaper rates than its competition. Tesla claimed that because it knew its vehicles best, it could “leverage the advanced technology, safety and serviceability of Tesla cars to provide insurance at a lower cost.” 

At first, Tesla car insurance was only available in California, but since then, the program has expanded to many other states. Currently, these are the states where Tesla car insurance is available:

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

Are Teslas Expensive To Insure?

Comparatively speaking, yes. Insurance rates for EVs such as Teslas are generally higher than rates for gas-powered cars, according to the National Association of Insurance Commissioners.

Not only are purchase prices often higher for EVs, but so are repair costs. Also, relatively few auto repair shops are equipped to repair EVs.

The NAIC noted that Tesla Model Y and Model 3 vehicles are the most expensive EVs to insure due to factors like:

• Low number of shops that can do repairs.
• Cost and dangers associated with battery repairs and battery fires.
• Pedestrian safety issues resulting from these cars’ quietness.
• Potential cybersecurity issues.
• Automated driving features.

Tesla Insurance vs. Other Insurance Providers

Here are some key factors to keep in mind when comparing Tesla to other car insurance providers.

Good To Know

Tesla Insurance may offer lower rates but it doesn’t include bundling discounts and is only available in select states. Traditional insurers provide broader coverage options but often base rates on factors Tesla doesn’t, like credit or age.

Why Is Tesla Insurance So Cheap?

Tesla’s own insurance is often cheaper than Tesla Insurance from other providers because of the way it calculates premiums.

Many insurers calculate rates based on information that has little to do with your driving, such as:

• Credit score
• Age
• Gender
• Marital status
• Accident history
• Violation history

Instead of doing that, Tesla uses its cars’ advanced sensors to collect information on your driving and calculate your premiums based on that behavior.

Factors affecting your Tesla Insurance premiums include:

• Your vehicle
• Where you live
• How much you drive
• What coverage you select
• In states other than California, your vehicle’s monthly Safety Score.

Driving Behavior and Safety Score

Tesla Safety Scores range from 1 to 100 and are based on the past 30 days’ real-time data on the following driving behaviors:

• Hard braking
• Aggressive turning
• Unsafe following
• Late-night driving

At the end of the month, your Safety Score is used to calculate your premiums for the next month. The higher your safety score, the lower your premiums. Because of this, you can directly affect how much you will pay for car insurance next month by driving more safely.

Keep In Mind

Premiums for California Tesla drivers are not based on real-time driving or Safety Scores.

If you’re a California resident, compare quotes with other providers to see whether Tesla is still a good option for you.

How To Buy Tesla Insurance: 6-Step Guide

Tesla car insurance can be purchased directly from the Tesla mobile app on iOS or Android. Here’s how:

1. Open the Tesla app.
2. Tap your profile picture.
3. Select “Get Tesla Insurance.”
4. Enter car details or VIN.
5. Choose a plan and add vehicles.
6. Pay through debit or credit card in-app.

California drivers can also insure their non-Tesla vehicles through Tesla. To get a quote for a new policy:

1. Create a Tesla account if you don’t already have one.
2. Open the Tesla app.
3. Tap “Tesla Insurance,” located at the bottom of the home screen.

If you already have a Tesla policy and want to add a non-Tesla vehicle, open the Tesla app, and from the menu in the top-right corner:

1. Tap “Manage Policy.
2. Tap “Make Policy Updates.”
3. Tap “Add Vehicle.”

Customers can pay their premiums using a credit or debit card inside the app. California users also have the option of mailing in a check, money order or cash.

Should You Choose Tesla Insurance or a Traditional Provider?

Picking a provider for your car insurance is a big decision.

Consider Tesla Insurance if:

• You live in an eligible state.
• You’re a safe driver.
• You want usage-based pricing.

Consider a traditional insurer if:

• You want to bundle insurance policies to earn discounts.
• You don’t drive a Tesla.
• You want more flexible coverage options.

Key Takeaway

Before you choose an insurance provider, compare quotes from Tesla and at least two traditional insurers.

If you’re eligible for Tesla Insurance and have a high Safety Score, it might be your cheapest auto insurance option.

Chris Ozarowski contributed to the reporting for this article.

Information is accurate as of May 8, 2025. 

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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