Thinking of Buying a Tesla? You Might Want To Check Insurance Costs First
Written by
Laura Bogart
Edited by
Kristen Mae
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It’s not an easy time to be a Tesla owner. People who may have wanted a cost-efficient electric vehicle that looked good while doing great things for the environment are now saddled with a car that has become increasingly unpopular — partly due to the political engagement of its co-founder. This shift has frustrated some Tesla shareholders and longtime advocates.
Protesters are flocking to Tesla dealerships to express their anger at Musk and his controversial Department of Government Efficiency (DOGE). Meanwhile, some individual Tesla owners worry about their cars being egged or graffitied — so much so that some have even tried to change the logo or have bought bumper stickers that read, “I bought this car before I knew Elon was crazy.”
Still, you might not be the type to base a major purchasing decision on public opinion. Maybe you’ve been curious about a Tesla for a long time and don’t really care if your neighbors give you the side-eye. But you might care if Tesla’s PR woes translate to higher insurance costs for you.
Teslas Are Getting More Expensive To Insure
Between vandalism, protests, and viral videos of celebrities getting rid of their Teslas (Elvira famously had “Elon Sux” scrawled on her Model X before it was carted off) — not to mention declining sales and a volatile stock price — Tesla is confronting some real economic fallout. And according to some experts, consumers are being hit with the debris from that fallout in the form of higher insurance prices.
Speaking to Newsweek, Matt Brannon, a data journalist at Insurify, said the Tesla Model 3, Model Y, and Model X are now the most expensive EVs to insure as of February 2025. The cost to fully insure a Tesla 3 jumped 30% last year, reaching a whopping $4,362 annually.
“This is 25% higher in cost than the comparable Mercedes Benz A-Class. The annual average cost of full-coverage auto insurance for the Tesla Cybertruck reached $3,813 in 2025,” he said.
Higher Insurance Costs Affect Most Electric Vehicles
Some of Tesla’s challenges are specific to its co-founder’s public relations crises. However, insuring EVs has historically been pricier across the board.
Higher insurance premiums are largely due to the fact that electric vehicles cost more to repair or replace after an accident or even routine wear and tear. Writing for Yahoo Finance, Stephanie Colestock explained the cost gap between electric vehicles and their gas-powered counterparts:
“You can expect EV insurance premiums to be higher than what you’d pay for a conventional, gas-powered vehicle. The average monthly cost to insure a gas-engine car is $248, according to research from Insurify. That number jumps to $357 for EVs.”
Colestock added that the higher-priced EV parts, along with the limited number of mechanics with specialized knowledge in repairing these models, can further drive up the cost of insurance.
While this isn’t a Tesla-specific problem, the carmaker is far from immune to it.
Tesla’s Woes Don’t Seem To Be Ending
That said, Tesla is facing some intense public backlash that other electric vehicle brands aren’t experiencing at the moment.
Reporting on this phenomenon in Gizmodo, Matthew Gault noted that concerns over Teslas being vandalized can fuel increased insurance premiums. He described the emergence of “DOGEQUEST,” a website that allegedly points out the locations of Tesla dealerships, superchargers, and, more alarmingly, individual Tesla owners — effectively providing a roadmap for would-be vandals.
Insurance premiums increasing due to specific vehicle risks isn’t new. Gault pointed out that in 2023, Kia and Hyundai faced a similar issue after they “cheaped out” on certain anti-theft features, making the vehicles easy to steal with a USB charging cable.
“It fueled a social media trend where people would steal the cars, joyride them, and post a video about it on TikTok,” he wrote. “Insurance rates for the vehicles skyrocketed and owners filed class-action lawsuits against the manufacturer.”
Ultimately, whether to buy a Tesla is a personal decision. You can certainly make the case that it’s not fair to punish individual drivers because of collective anger at Musk. But if you’re in the market for one, you might want to brace yourself for higher insurance premiums.
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