The cost of insuring a Tesla is generally higher than that of many other makes and models due to its expensive parts, advanced technology and high vehicle value.
For example, replacing Tesla’s specialized parts, such as large lithium-ion batteries, can cost up to $20,000. Additionally, repairing the aluminum body panels requires skilled technicians and specialized equipment. All these factors contribute to the overall higher insurance premiums for Teslas.
How much does it cost to insure a Tesla?
According to our data, insuring a Tesla car costs an average of $4,140 a year or $345 per month for a full coverage policy with limits of 100/300/100 and $500 collision and comprehensive deductibles. Car insurance for Teslas is generally more expensive than insuring many other vehicles.
For instance, it costs $3,284 a year for a full coverage policy to insure a Mercedes-Benz — that’s $856 less than insuring a Tesla. Similarly, if you own a BMW, you’ll pay $3,778 a year for a full coverage car insurance policy — $362 less than Tesla’s average insurance cost.
Explore average Tesla insurance rates by model
Why is Tesla car insurance expensive?
Teslas have hefty purchase prices and are expensive to repair. Depending on the model, it costs anywhere from $13,000 to $20,000 to replace a Tesla battery.
The advanced technology in Teslas drives up repair costs following an accident, inflating insurance premiums. Besides, Teslas can only be repaired at Tesla-approved service centers because of the specialized training and equipment required.
The table below shows how much insurance companies charge to insure a Tesla.
| Company | Average annual full coverage cost | Average full-coverage six-month cost | Average full-coverage monthly cost |
|---|---|---|---|
| State Farm | $2,951 | $1,476 | $246 |
| Nationwide | $3,181 | $1,590 | $265 |
| Progressive | $4,006 | $2,003 | $334 |
| Geico | $4,158 | $2,079 | $346 |
| Farmers | $5,066 | $2,533 | $422 |
| Allstate | $5,536 | $2,768 | $461 |
Do all Tesla models have high insurance rates?
Not all Tesla models have high insurance rates, but many do. For example, the Model S Plaid and Model X Plaid are among Tesla’s most expensive and high-performance vehicles, offering top speeds and luxury features. With starting prices of $96,630 and $101,630, respectively, their high value and performance specs lead to significantly higher insurance premiums.
Business Insider reports that since early 2023, Tesla has significantly lowered the Model 3 and Model Y prices, bringing some trims below the average cost of a new car in the U.S. Insurers factor in the vehicle’s market value when calculating premiums because it affects the potential payout in case of a total loss.
Insurance premiums for Teslas can vary significantly by model, with the Model S and Model X being expensive to insure than insurance rates for Model 3 and Model Y.
For instance, the average annual full coverage car insurance cost for Tesla Model 3 is $3,466, whereas you can expect to pay $5,074 a year on average for a full coverage policy to insure Model S— that’s a difference of $1,608.
Below, you’ll find how much it costs to insure different Tesla models for a full coverage policy.
| Model | Average annual full-coverage cost | Average full-coverage six-month cost | Average full-coverage monthly cost |
|---|---|---|---|
| Tesla Model 3 | $3,466 | $1,733 | $289 |
| Tesla Model Y | $3,529 | $1,765 | $294 |
| Tesla Model X | $4,805 | $2,403 | $400 |
| Tesla Model S | $5,074 | $2,537 | $423 |
Does Tesla offer its own insurance?
Tesla offers its own car insurance designed specifically for Tesla vehicle owners. It tracks your real-time driving behavior to determine premiums. Tesla offers insurance rates that are 20% to 30% lower than standard insurance companies, making coverage more affordable for Tesla owners.
You can get a quote, purchase a new policy and manage the existing insurance policy using Tesla’s mobile app. However, Tesla Insurance is only available in some states, and they are:
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Final thoughts
Before choosing a policy, it’s a good idea to get quotes from Tesla Insurance and some other standard insurance companies. This will help you understand your options and see which insurer offers affordable rates for the coverage you need.
If you’re considering Tesla Insurance, check if it’s available in your state because Tesla doesn’t offer insurance nationwide.
Check out how vandalism could raise your Tesla insurance
Resources and Methodology
Sources
- Tesla.com. “Introducing Tesla Insurance.” Accessed April 2025.
- J.D. Power. “How Often Do Tesla Batteries Need To Be Replaced?” Accessed April 2025.
- Tesla.com. “Compare Models.” Accessed April 2025.
- Business Insider. “How much does a Tesla cost? Price ranges of Model Y, X, S, and 3.” Accessed April 2025.
Methodology
CarInsurance.com collected car insurance rates for various Tesla models from Quadrant Information Services. The rates are based on the sample profile of a 40-year-old driver carrying a full coverage policy with limits of 100/300/100 and $500 collision and comprehensive deductibles.
To evaluate the premiums, we compared 67,566,780 insurance quotes from 57 insurance companies across 510 ZIP codes nationwide.
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