We understand that buying or owning a Tesla can be exciting yet overwhelming, especially considering the cost of a $10,000 battery replacement.
If you have Tesla Insurance, it generally covers battery damage caused by accidents or unexpected events—just like any other car part. However, it won’t cover normal wear and tear or degradation – car insurance doesn’t cover wear and tear – Tesla or otherwise.
Tesla also offers a Battery and Drive Unit Limited Warranty that covers repairs or replacements for a set number of years and miles, which can help if there is an issue with the car’s battery due to regular use.
Does Tesla Insurance cover battery replacement?
Tesla introduced its own insurance program in 2019, tailored specifically for Tesla cars. What sets it apart is that it offers competitive premiums, often 20% to 30% lower than what you’d find with traditional insurance companies.
The policy includes standard coverage options like liability, collision and comprehensive, which can cover battery replacement costs under specific circumstances. Collision coverage applies if the battery is damaged in an accident, while comprehensive coverage pays for non-collision incidents like fire, theft or natural disasters.
Traditional insurance companies insure Teslas under standard auto policies and may cover battery replacement depending on your coverage and the circumstances.
When Tesla Insurance won’t pay for a new battery
Tesla Insurance does not cover battery replacements resulting from normal wear and tear or degradation over time. Tesla’s Battery and Drive Unit Limited Warranty covers battery repairs or replacements for eight years or a specified mileage, whichever comes first, depending on the model.
For instance, Model S and Model X are covered for eight years or 150,000 miles, while Model 3 and Model Y variants have coverage ranging from 100,000 to 120,000 miles.
What’s the cost of replacing a Tesla battery without coverage?
A Tesla battery replacement outside of warranty and without insurance coverage can range from $13,000 to around $20,000, depending on the model, battery size and labor costs. For instance, the cost of replacing the battery of the Model X premium SUV is around $14,000, and the battery replacement costs about $13,000 for the Model 3 entry-level sedan.
Will insurance cover battery replacement due to an accident?
If you have a full coverage policy that includes collision insurance, then your Tesla’s battery will be treated like any other car part, and your policy will pay for a battery repair or replacement if it’s damaged in a covered accident.
However, you will have to pay your deductible first, and the extent of coverage might depend on your policy limits. Besides, Tesla provides its own Battery and Drive Unit Limited Warranty for mechanical or manufacturing defects, which is separate from Tesla Insurance.
Tesla Warranty covers a malfunctioning or defective battery for eight years or 150,000 miles, whichever comes first, depending on the model. On the other hand, Tesla Insurance covers accident-related damages; it does not typically include coverage for battery replacements due to degradation or defects after the warranty period.
Final thoughts
Whether you get insurance through Tesla or a traditional insurance company, make sure you read your policy and understand exactly what’s covered. While insurance may cover battery damage from collisions or other covered incidents, it won’t pay for battery damage or issues from regular use over time.
However, the Tesla warranty provides coverage for battery-related issues for a minimum of 8 years or 150,000 miles, depending on the model you own. Knowing the coverage details and staying on top of your vehicle’s maintenance can help you enjoy driving your Tesla without worrying about unexpected battery issues.
Sources
- Tesla.com. “Vehicle Warranty.” Accessed April 2025.
- Tesla.com. “Introducing Tesla Insurance.” Accessed April 2025.
- J.D. Power. “How Often Do Tesla Batteries Need To Be Replaced?” Accessed April 2025.
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