Drivers are increasingly trading in their gas-powered cars for electric vehicles, and Tesla is dominating the market. According to data from the U.S. Department of Energy, the Tesla Model 3 was the highest-selling electric vehicle in 2019 and 2018.
If you’re thinking about buying a Tesla, you’ll definitely save money on gas. But will you save money on car insurance? Probably not.
The national average cost of car insurance for all Tesla models combined is $2,997 per year for full coverage, based on our sample driver profile. In comparison, the United States national average full coverage premium for all vehicles is $1,758 per year. Tesla insurance isn’t cheap.
However, the cost of car insurance is different for every Tesla model. We put together a guide to help you figure out which Tesla model is right for you based on your insurance budget, which is a critical part of car shopping.
- The average insurance premium for all Tesla models combined is $2,997 per year.
- The Model Y has the lowest average rate; the Model S has the highest average rate.
- Car insurance for used Tesla models tends to be cheaper than insurance for new models.
Tesla car insurance cost by model
For every Tesla model, the average cost of car insurance is well above average, but some models have cheaper rates than others. In the table below, we’ve included the average rates for every 2021 Tesla model and the average premium across all 50 states.
| Make | Model Group | Model Year | Avg. Nationwide |
|---|---|---|---|
| Tesla | Model 3 | 2021 | $ 2,257 |
| Tesla | Model S | 2021 | $ 3,908 |
| Tesla | Model X | 2021 | $ 3,613 |
| Tesla | Model Y | 2021 | $ 2,208 |
Although Tesla insurance is typically more expensive than average, your car insurance premium will depend on several factors, including your location, age, credit score and claim history.
Here’s a more in-depth look at the average car insurance rates for new Tesla models, as well as the insurance cost for older, used models.
Tesla Model 3 insurance cost
The average Tesla Model 3 insurance premium is $2,257 per year for a full coverage policy. If you purchase a base model 2021 Tesla Model 3, it will run you about $39,990, which is the Standard Range Plus trim.
There are two other trim levels available—the Long Range trim, which costs $49,990, and the Performance trim, which costs $56,990.
Overall, the Tesla Model 3 is considered to be a very safe vehicle. The car has a “good” rating in nearly every category according to Insurance Institute for Highway Safety (IIHS) safety ratings.
Insurance cost for used Tesla Model 3
Based on our sample rates, the average car insurance premium for a 2021 Tesla Model 3 is actually less expensive than the average rates for used models. Car insurance premiums on the 2018 and 2019 models are the most expensive.
Here’s a look at the average rates for 2017-2020 Tesla Model 3 car insurance:
| Make | Model | Model Year | Avg. Nationwide |
|---|---|---|---|
| Tesla | Model 3, Model 3 Long Range, Model 3 Performance and 1 more | 2017 | $ 2,249 |
| Tesla | Model 3, Model 3 Long Range, Model 3 Performance and 1 more | 2018 | $ 2,428 |
| Tesla | Model 3, Model 3 Long Range, Model 3 Performance and 1 more | 2019 | $ 2,483 |
| Tesla | Model 3, Model 3 Long Range, Model 3 Performance and 1 more | 2020 | $ 2,302 |
Tesla Model S insurance cost
The 2021 Tesla Model S is the most expensive Tesla to insure. The average full coverage premium is $3,908 per year. However, it’s not the most expensive vehicle in Tesla’s lineup. The base model (Long Range) sticker price is $53,990. The higher-level Performance trim package costs $60,990.
In terms of safety, the Tesla Model S has solid ratings. The IIHS gives the Model Y a “good” rating in almost every category.
Insurance cost for used Tesla Model S
If you want to save money on Tesla Model S insurance, consider buying a used one. The average insurance premiums for the 2017-2020 models are cheaper than the cost of insurance for a 2021 model.
Here’s a look at the average rates for a used Tesla Model S:
| Make | Model | Model Year | Avg. Nationwide |
|---|---|---|---|
| Tesla | Model S, Model S 100D, Model S 5D and 6 more | 2017 | $ 3,672 |
| Tesla | Model S, Model S 100D, Model S 5D and 6 more | 2018 | $ 3,560 |
| Tesla | Model S, Model S 100D, Model S 5D and 6 more | 2019 | $ 3,328 |
| Tesla | Model S, Model S 100D, Model S 5D and 6 more | 2020 | $ 3,569 |
Tesla Model X insurance cost
Tesla’s Model X is the most expensive Tesla vehicle, with a purchase price of $99,990 for the Long Range trim and $119,900 for the Plaid trim. Given the high price tag of the vehicle, it makes sense that the cost of insurance is also high. The average rate for a Tesla Model X is $3,613 per year for a full coverage policy.
While the Model X is not crash-tested by the IIHS, the National Highway Traffic Safety Administration (NHTSA) gives it a five-star safety rating, which is the highest score possible.
Insurance cost for used Tesla Model X
Car insurance for a Tesla Model X is less expensive if your purchase a used model. Based on our sample rates, the 2019 Model X has the cheapest average premium.
Below are the average premiums for the 2017-2020 Tesla Model X:
| Make | Model | Model Year | Avg. Nationwide |
|---|---|---|---|
| Tesla | Model X, Model X 100D, Model X 75D and 5 more | 2017 | $ 3,475 |
| Tesla | Model X, Model X 100D, Model X 75D and 5 more | 2018 | $ 3,468 |
| Tesla | Model X, Model X 100D, Model X 75D and 5 more | 2019 | $ 3,205 |
| Tesla | Model X, Model X 100D, Model X 75D and 5 more | 2020 | $ 3,547 |
Tesla Model Y insurance cost
The 2021 Tesla Model Y costs $53,990 for the Long Range trim and $60,990 for the Performance trim. The average auto insurance premium is $2,208, which is the cheapest Tesla model to insure based on our sample rates. According to the NHTSA, the Tesla Model Y has a perfect five-star safety rating.
Insurance cost for used Tesla Model Y
Because the Tesla Model Y was released in 2020, there isn’t sufficient data to determine how much auto insurance costs on a used model. However, it’s possible that the average rate for a 2020 Tesla Model Y is slightly cheaper than the average premium for the 2021 model.
How to budget and save on Tesla auto insurance
Teslas are luxury vehicles, and the average cost of Tesla car insurance for all models combined is more than $1,000 above the U.S. national average rate.
However, some Tesla models are more expensive to insure than others. Based on our sample rates, the Tesla Model Y has the lowest average insurance premium, and the Model S has the highest average premium.
Besides the make and model of your vehicle, your Tesla insurance cost is determined by several factors, like your age and credit score. Because of that, Tesla owners might pay higher or lower rates than average based on their personal profile.
Seeing the average rates for Tesla auto insurance side-by-side can be helpful for the sake of comparison if you’re deciding which model to purchase.
If you want to lower your Tesla insurance cost, there are a few things you can do:
- Look for insurance companies that offer discounts you qualify for
- Pay your annual premium in full
- Consider bundling your auto and home, renters, or condo insurance policy
- Improve your credit score
- Avoid accidents and traffic violations
Additionally, Tesla offers an Autonomous Vehicle Protection Package that provides some additional coverage for things like electronic key replacement, identity theft and chargers. While this package may not directly affect your insurance costs, it may help reduce the number of insurance claims.
Before you choose an insurance company, make sure to compare quotes from a few different providers for the make and model of your vehicle, and the type and amount of coverage you need. That way, you can see which carrier can offer the lowest rate.
You can also use a car insurance calculator to determine how much you might pay based on things like your ZIP code, age, and the type of policy you want.
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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.
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John McCormick
Editorial Director
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.
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Leslie Kasperowicz
Managing Editor
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.
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Nupur Gambhir
Managing Editor
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.
