If you’re in the market for a new vehicle, you must factor the cost of car insurance into your car budget. Interested in how much car insurance for a Tesla costs? Here’s what you need to know.

Key Highlights
  • The annual average nationwide cost of full coverage car insurance for Tesla is $3,371 per year.
  • The Model 3 is the cheapest Tesla model to insure.
  • Advanced safety features that come standard on Tesla models help lower your insurance costs.
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Written by:
Mark Vallet
Contributing Researcher
Mark is a freelance journalist and analyst with over 15 years of experience covering the insurance industry. He has extensive experience creating and editing content on a variety of subjects with deep expertise in insurance and automotive writing. He has written for autos.com, carsdirect.com, DARCARS and Madtown Designs to name just a few. He is also a professional blogger and a skilled web content creator who consistently turns out engaging, error-free writing while juggling multiple projects.
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Reviewed by:
Laura Longero
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Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

Average cost of car insurance for a Tesla, by company

Car insurance premiums can differ significantly based on the make of the vehicle. For instance, car insurance rates vary from one insurance company to another because each company uses its formula to calculate risk and estimate the likelihood of a claim being filed, considering factors such as your driving record, location, age and the type of vehicle you drive.

See how car insurance rates for Tesla vehicles compare among different insurers in the table below.

Cost to insure a Tesla, by company

CompanyAverage Annual RatesAverage Monthly Rates
State Farm$2,069$172
Nationwide$2,227$186
Progressive$3,285$274
Geico$3,441$287
Farmers$3,999$333
Allstate$5,181$432

Tesla average insurance rates, by model

Tesla Model 3 car insurance cost

The average car insurance premium (per month) for Tesla Model 3 is $243, which translates to $2,914 per year. The most affordable company for a Tesla Model 3 is State Farm with a rate of $129 monthly or $1,545 per year.

Tesla Model Y car insurance cost

The average car insurance premium (per month) for Tesla Model Y is $259, which translates to $3,103 per year. The most affordable company for a Tesla Model Y is State Farm with a rate of $158 monthly or $1,899 per year.

Tesla Model X car insurance cost

The average car insurance premium (per month) for Tesla Model X is $320, which translates to $3,834 per year. The most affordable company for a Tesla Model X is State Farm with a rate of $232 monthly or $2,779 per year.

Tesla Model 3 Performance car insurance cost

The average car insurance premium (per month) for Tesla Model 3 Performance is $323, which translates to $3,881 per year. The most affordable company for a Tesla Model 3 Performance is State Farm with a rate of $151 monthly or $1,816 per year.

Tesla Model S car insurance cost

The average car insurance premium (per month) for Tesla Model S is $334, which translates to $4,005 per year. The most affordable company for a Tesla Model S is Nationwide with a rate of $200 monthly or $2,395 per year.


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The average cost of car insurance for a Tesla, by age

Tesla car insurance costs will vary depending on your age. When it comes to car insurance, young drivers typically pay much higher rates for coverage than drivers with more experience under their belts.

According to the Insurance Information Institute, young drivers made up only 5.1% of all licensed drivers in 2020 but accounted for 8.5% of all drivers involved in fatal crashes. Statistics clearly show that young drivers are involved in more accidents which result in claims. Teens also engage in more reckless behavior behind the wheel than older drivers, and that additional risk pushes up the cost of insurance.

The cost of car insurance starts to drop as drivers gain more experience and stays pretty level, assuming no tickets, claims or accidents until the age of 60 when rates start to rise.

In the tables below, see how much it costs to insure a Tesla by the driver’s age.

Cost to insure a Tesla, by model, for 18-year-olds

Make ModelAverage Annual RatesAverage Monthly Rates
Tesla Model 3$11,661$972
Tesla Model 3 Performance$15,311$1,276
Tesla Model S$15,713$1,309
Tesla Model S Plaid$17,834$1,486
Tesla Model X$14,786$1,232
Tesla Model X Plaid$16,920$1,410
Tesla Model Y$11,997$1,000
Tesla Model Y Performance$12,233$1,019

Cost to insure a Tesla, by model, for 40-year-olds

Make ModelAverage Annual RatesAverage Monthly Rates
Tesla Model 3$2,914$243
Tesla Model 3 Performance$3,881$323
Tesla Model S$4,005$334
Tesla Model S Plaid$4,563$380
Tesla Model X$3,834$320
Tesla Model X Plaid$4,405$367
Tesla Model Y$3,103$259
Tesla Model Y Performance$3,150$262

Which body styles are cheaper or more expensive to insure?

When it comes to affordable Tesla car insurance, it’s best to stick to vehicles that are designed with families in mind. These vehicles are typically loaded with advanced safety features, have smaller engines and are usually driven by parents who have kids in the car, so they tend to drive more carefully, which results in fewer accidents.

Airbags, backup cameras, automatic emergency braking and lane departure warning are all safety features that will help keep your insurance premium low. As in years past, minivans and compact to midsize SUVs topped our list of cheapest cars to insure this year.

Pickups and commercial vans also tend to be cheaper to insure than sedans and other vehicle types. They are usually cheaper to repair because the back end of the vehicle is just an empty bed, it doesn’t have seating or other expensive electrical and safety components. Cheaper repairs result in cheaper insurance.

Cheapest Tesla models to insure

Smaller, less expensive Tesla models that have a low-power engine under the hood are always going to be cheaper to insure than more upscale or sporty models. Entry-level Tesla base models can be very affordable to insure, but your premium will be headed up as you go up the scale when it comes to higher-level trims.

Models that are popular with families and are loaded with safety features will help keep your premium affordable. Advanced safety features such as automatic emergency braking, a backup camera and blind spot detection can result in a discount on your premium.

“If you are a younger driver, you will probably pay more for auto insurance, so you may need to consider practicality versus style,” says Lauren Mckenzie, independent broker/agent with A Plus Insurance. “If you are younger and you choose a fast, luxurious sports car, your monthly insurance payments could end up being more than your monthly auto loan payments.”

Most expensive Tesla models to insure

Luxury vehicles, sports cars, and SUVs generally rank as the most expensive types of vehicles for car insurance. Luxury vehicles and sports cars often attract higher insurance rates because they are more likely to be stolen and cost more to repair or replace. On the other hand, SUVs, especially larger ones, can lead to higher premiums due to their potential to cause more damage in an accident.

If you are hoping to keep your insurance bill low, avoid these types of vehicles:

  • EVs: EVs have large, very expensive batteries under the hood which makes them expensive to insure. Battery packs can cost up to $20,000 to replace, so insurers factor that risk into your rate.
  • Luxury and sports cars: A big engine is always a red flag for insurers as is a sky-high sticker price. Luxury and sports cars come with a big sticker price, are fast, and filled with exotic trims and technology, all of which make them very costly to repair or replace if you file a claim which is why they are super expensive to insure.
  • Favorites of thieves: Insurers keep a close eye on statistics, and if your vehicle is a favorite with car thieves, you will pay more for coverage. The National Insurance Crime Bureau (NICB) releases a list every year of hot cars with thieves so avoid those vehicles to keep your premium low.

How to save on car insurance for a Tesla

Shop around for quotes from multiple insurers. Also, investigate group auto insurance that may be available from your employer,” says Brian Martucci, finance editor for Minneapolis-based Money Crashers.

Additionally, drop insurance coverage you don’t need, especially if you want to purchase an older vehicle model.

“You can shift money from one type of coverage to additional coverage on the uninsured motorist property damage coverage, for example. This way, so long as you are not the one at fault in an accident, your vehicle will be covered and you will save a lot of money on car insurance,” Mckenzie says.

Before committing to a vehicle, estimate your car insurance costs and shop for the best value. Compare quotes from different insurance companies carefully.

“If your car insurance payments are still on the higher end, consider choosing a higher deductible, such as $1,000 instead of a $500 deductible – which will lower your premium,” Mckenzie says. “Also, consider leaving off additional coverages like rental reimbursement or roadside assistance, which may save you money, too.”

Tesla discounts on car insurance

One way to save money on your Tesla insurance is to make sure that all available discounts are being applied to your policy. Insurers offer a variety of discounts that can dramatically lower your premium.

Discounts may be related to the vehicle you drive or your personal factors. Insurance companies typically offer a discount for a vehicle loaded with advanced safety features such as automated emergency braking, lane departure warning and driver alertness monitor.

In addition, you may be able to save a bit of coin by having an anti-theft device installed or driving a brand-new car as some insurers offer a new car discount.

Discounts related to your personal factors can include major discounts such as being a good driver or a good student (if you have a teen on your policy).

“You may also qualify for a low-mileage discount by driving less and by bundling multiple policies, like home and auto, with the same carrier,” Martucci says.

Learn about common car insurance discounts for an overview of the most common savings for Tesla auto insurance.

How does a car’s make affect car insurance rates?

Curious how much is Tesla insurance? It will depend on which model you choose. Tesla builds a variety of different vehicles and the cost to insure them will vary depending on the vehicle type.

Smaller SUVs and minivans are the cheapest vehicle types to insure while luxury models and sporty sedans are more expensive. Pickup trucks tend to fall on the more affordable side of the insurance spectrum – until you get into the luxury trim levels.

Insurers collect reams of statistical data, and the numbers show that vehicles that are popular with families (think SUVs and minivans) are in fewer accidents and file fewer claims than drivers of sedans and sports cars which is one reason they are cheaper to insure. Luxury vehicles and sports cars are also bursting with expensive trim materials and technology that pushes up the cost of repairs and insurance.

Remember to compare apples to apples when it comes to insurance quotes for different vehicle types. A luxury sedan will always cost more to insure than a minivan or mid-size SUV, so when comparing insurance quotes, be sure to compare the same vehicle types and coverage limits.

The same advice should be followed when comparing vehicles from different manufacturers. A luxury German sedan (BMW or Mercedes for example) will be more expensive to insure than a minivan or compact vehicle from another manufacturer, so always compare similar vehicle types and trim levels when shopping for a new vehicle or policy.

Check out car insurance rates by model: Compare rates for over 3,000 models

About the company: Tesla

Tesla Inc., established in 2003, is an American electric vehicle and clean energy company. Tesla leads the electric vehicle market with its commitment to reducing carbon emissions. Its range of vehicles, including the Model S, Model 3, Model X and Model Y, are known for their sophisticated design, remarkable performance and extensive driving range.

Final thoughts on Tesla insurance costs

Tesla makes a variety of different models and the cost to insure them will vary based on a number of factors. Choosing entry-level vehicles with a low starting price, smaller engine under the hood and plenty of safety features will help keep your premium affordable while more luxury and sporty models will push up the cost of coverage.

Shopping your coverage on a regular basis, asking for discounts and choosing the highest deductible you can easily afford are all great ways to save money on your coverage regardless of which Tesla model you drive off the lot.

Resources & Methodology

Sources

Insurance Information Institute. “Facts + Statistics: Teen Drivers.” Accessed November 2023.

Methodology

CarInsurance.com editors in 2023 collected rates from Quadrant Information Services for 40-year-old and 18-year-old males with full coverage insurance with limits 100/300/100 and $500 comprehensive and collision deductibles. Drivers have a 12-mile commute and drive 10,000 miles per year. We analyzed 28,561,720 records, 1,439 vehicle models, 501 cities and 58 insurance companies nationwide.

Laura Longero

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Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

John McCormick

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John McCormick

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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

Leslie Kasperowicz

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Leslie Kasperowicz

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Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

Nupur Gambhir

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Nupur Gambhir

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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

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author image
Contributing Researcher

Mark is a freelance journalist and analyst with over 15 years of experience covering the insurance industry. He has extensive experience creating and editing content on a variety of subjects with deep expertise in insurance and automotive writing. He has written for autos.com, carsdirect.com, DARCARS and Madtown Designs to name just a few. He is also a professional blogger and a skilled web content creator who consistently turns out engaging, error-free writing while juggling multiple projects.