Tesla Car Insurance Costs In 2025
On average, it costs $350 per month to insure a Tesla, which adds up to about $4,197 per year. Tesla drivers have two policy options; Tesla’s company-owned insurance program or a 3rd-party policy.
We’ve saved shoppers an average of $600 per year on their car insurance.
Tesla, founded in 2003 by Elon Musk and others, specializes in electric vehicles, producing innovative and high-performance cars with a focus on sustainability and cutting-edge technology. However, due to advanced materials and high repair prices, insurance costs for Tesla are generally much higher than for other types of cars.
The cost to insure a Tesla depends on various factors, including your age, driving record, and where you live. Car insurance companies use this information to determine the risk of insuring your Tesla and set your premium accordingly. The average cost to insure a Tesla is $4,197 per year, which is more expensive than the national average of $1,812.
Key Takeaways
Tesla’s own insurance program is an affordable way to insure your Tesla, but it is only available in 12 states.
Tesla car insurance premiums are generally higher than other car makes, due to high repair costs, advanced materials and because some carriers classify them as luxry vehicles.
Tesla costs vary greatly from one provider to the other.
How Much Does Tesla Insurance Cost?
The average monthly cost to insure a Tesla is $350, amounting to approximately $4,197 annually. Many insurance carriers classify Tesla cars as luxury vehicles, which results in higher premiums. Companies which offer affordable policies for Tesla drivers include; Nationwide, State Farm and USAA.
However, your actual insurance expenses can vary significantly based on factors like your age, where you live, your driving record, and the specific Tesla model you own.
Average Tesla Insurance Cost Per Model
A key factor in determining your car insurance rate is the model that you drive. According to our analysis, the average cost of insuring a Tesla, across all models, is $4,197 per year.
The Tesla Model 3 is the cheapest model to insure, at $2,965 per year. On the other hand, the Tesla Model X is the most expensive, at an average of $4,780 per year.
Use the table below to compare insurance rates for Tesla models.
| Tesla Model | Average Yearly Insurance Cost |
| Tesla Model 3 | $2,965 |
| Tesla Model S | $4,615 |
| Tesla Model X | $4,780 |
| Tesla Model Y | $4,428 |
Keep in mind that these numbers are averages. Your actual cost may differ based on where you live, your age, your driving record, and the type of coverage you select.
Are Teslas Expensive To Insure?
The national average monthly cost for car insurance is $156, while insuring a Tesla averages $350 per month across all models, significantly higher.
However, insurance rates are typically determined by the specific Tesla model rather than the brand overall, so it’s essential to check rates tailored to your vehicle.
Additionally, Tesla personalizes car insurance rates based on the driver’s habits. They have their own ‘Safety Score’ program which is used to provide lower premiums to drivers who exhibit good driving behaviors.
Most insurance carriers determine rates based on things like; marital status, age and credit score. However, Tesla base their rates on factors such as;
- Your specific Tesla model
- Deductible amount
- Mileage
- Safety Score
- Location
Tesla Model 3 Insurance Cost
The average cost of insuring a Tesla Model 3 across all model years, is $1,412 per year. Use the table below to compare rates for different model years.
| Model Year | Average Yearly Premium |
| 2024 Tesla Model 3 | $1,117 |
| 2023 Tesla Model 3 | $945 |
| 2022 Tesla Model 3 | $1,093 |
| 2021 Tesla Model 3 | $2,847 |
| 2020 Tesla Model 3 | $1,059 |
Tesla Model S Insurance Cost
The average cost of insuring a Tesla Model S across all model years, is $2,506 per year. Use the table below to compare rates for different model years.
| Model Year | Average Yearly Premium |
| 2024 Tesla Model S | $3,645 |
| 2023 Tesla Model S | $3,700 |
| 2022 Tesla Model S | $1,506 |
| 2021 Tesla Model S | $1,506 |
| 2020 Tesla Model S | $2,176 |
Tesla Model X Insurance Cost
The average cost of insuring a Tesla Model X across all model years, is $1,830 per year. Use the table below to compare rates for different model years.
| Model Year | Average Yearly Premium |
| 2024 Tesla Model X | $1,860 |
| 2023 Tesla Model X | $1,812 |
| 2022 Tesla Model X | $1,395 |
| 2021 Tesla Model X | $2,395 |
| 2020 Tesla Model X | $1,688 |
Tesla Model Y Insurance Cost
The average cost of insuring a Tesla Model Y across all model years, is $1,315 per year. Use the table below to compare rates for different model years.
| Model Year | Average Yearly Premium |
| 2024 Tesla Model Y | $1,401 |
| 2023 Tesla Model Y | $1,812 |
| 2022 Tesla Model Y | $973 |
| 2021 Tesla Model Y | $888 |
| 2020 Tesla Model Y | $1,504 |
Cheapest Car Insurance Companies For Teslas
The cost of your Tesla car insurance policy will depend on the company that you choose. Tesla Insurance offers the cheapest rates for insuring a Tesla, at $1,776 per year.
Use the table below to compare cheap full-coverage rates for a Tesla.
| Company | Average Annual Premium |
| Tesla Insurance | $1,776 |
| Nationwide | $3,696 |
| State Farm | $2,700 |
| Progressive | $5,784 |
| USAA | $3,096 |
Tesla Car Insurance Cost – By Driver Age
The rates you pay to insure a Tesla will differ dramatically based on driver age. Younger drivers tend to pay a lot more for car insurance because, statistically, they are much more likely to get into accidents.
As drivers get older, their insurance rates tend to drop until they turn about 60-70. Then their rates increase again.
| Age | Average Annual Rate |
| 17 | $14,209 |
| 18 | $13,243 |
| 19 | $11,705 |
| 20 | $10,205 |
| 21 | $8,570 |
| 22 | $8,336 |
| 23 | $7,310 |
| 24 | $6,928 |
| 25 | $5,990 |
| 30 | $4,673 |
| 35 | $4,355 |
| 40 | $4,207 |
| 45 | $4,078 |
| 55 | $3,756 |
| 65 | $3,912 |
| 75 | $4,927 |
Average Tesla Car Insurance Rates – By Company
| Insurance Provider | Average Monthly Premium |
| Tesla Insurance | $175 |
| State Farm | $222 |
| USAA | $240 |
| Nationwide | $310 |
| Progressive | $495 |
| GEICO | $549 |
Average Tesla Car Insurance Rates – By U.S. State
| State | Average Annual Rate |
| Alabama | $4,453 |
| Alaska | $3,686 |
| Arizona | $4,162 |
| Arkansas | $4,556 |
| California | $5,071 |
| Colorado | $4,732 |
| Connecticut | $6,063 |
| Delaware | $5,018 |
| Florida | $5,961 |
| Hawaii | $1,932 |
| Idaho | $3,371 |
| Illinois | $3,527 |
| Indiana | $3,626 |
| Iowa | $2,887 |
| Kansas | $3,834 |
| Kentucky | $5,520 |
| Louisiana | $7,108 |
| Maine | $2,691 |
| Maryland | $4,350 |
| Massachusetts | $3,479 |
| Michigan | $8,410 |
| Minnesota | $3,468 |
| Mississippi | $4,182 |
| Missouri | $3,944 |
| Montana | $4,008 |
| Nebraska | $3,376 |
| Nevada | $5,586 |
| New Hampshire | $3,873 |
| New Jersey | $4,281 |
| New Mexico | $4,366 |
| New York | $4,049 |
| North Carolina | $2,514 |
| North Dakota | $3,428 |
| Ohio | $3,065 |
| Oklahoma | $4,876 |
| Oregon | $4,452 |
| Pennsylvania | $3,743 |
| Rhode Island | $6,262 |
| South Carolina | $4,242 |
| South Dakota | $3,819 |
| Tennessee | $4,474 |
| Texas | $4,512 |
| Utah | $3,837 |
| Vermont | $2,967 |
| Virginia | $2,781 |
| Washington | $3,674 |
| West Virginia | $3,704 |
| Wisconsin | $3,693 |
| Wyoming | $3,457 |
| Georgia | $4,867 |
How To Save Money On Tesla Car Insurance?
Owning a Tesla involves several costs, with car insurance being one of the largest. But you can still find ways to lower your insurance expenses. Here’s how:
Maintain a Clean Driving Record
Insurance companies consider your driving history very important when setting your premium. By staying accident-free and avoiding traffic tickets, you demonstrate to insurers that you’re a low-risk driver, which can lead to lower insurance costs.
Bundle Your Policies
Many insurance companies provide discounts if you bundle multiple policies, such as home and auto insurance. This makes it easier to manage your insurance and can also help you save money on your premiums.
Raise Your Deductible
Raising your deductible—the amount you pay before your insurance starts covering costs—can reduce your premium. Make sure you can afford the higher deductible if you need to file a claim.
Install Safety Features
Tesla vehicles have a lot of built-in safety features, but adding additional security measures, like anti-theft devices, can help lower your insurance costs by reducing the risk of theft and damage.
Take Advantage of Discounts
Insurance companies frequently offer discounts for things such as being a good student, maintaining a clean driving record, or taking a defensive driving course. Check with your insurer to find out which discounts you might be eligible for.
Tesla’s insurance program offers discounts for drivers who haven’t had an accident, or a speeding ticket, for 3-5 years. The Tesla Mode S has GPS tracking and Sentry Mode that keeps sensors and cameras on at all times. These safety features can qualify drivers for anti-theft device discounts.
Shop Around
Insurance rates can differ significantly from one provider to another. Be sure to compare quotes and select the insurance company that gives you the best deal for what you need.
Consider Usage-Based Insurance
If you don’t drive your Tesla much, consider usage-based insurance. This policy adjusts your premium based on how often you drive, which could save you money if your Tesla isn’t your primary vehicle.
Tesla Insurance Program
Due to unreasonably high insurance costs for Tesla cars, Tesla created their own insurance program in 2019, which has lower premiums. They offer liability, comprehensive and collision coverage options for Tesla drivers.
However, Tesla’s insurance program is currently available in only 12 states; Virginia, Utah, Texas, Oregon, Ohio, Nevada, Minnesota, Maryland, Illinois, Colorado, California & Arizona.
Our Methodology
In order to calculate average car insurance costs, Insuranceopedia aggregated thousands of quotes from leading auto insurance providers. The sample profile was for a 40-year-old male driver buying full-coverage car insurance with these coverage limits: $100,000 in property damage liability, $100k in bodily injury liability and a $1,000 deductible. However, the figures in this guide may differ from your own individual results.
FAQs
What Is The Most Expensive Tesla Model To Insure?
At $4,780 per year, the Tesla Model X is the most expensive Tesla model for car insurance.
What Is The Cheapest Tesla Model To Insure?
The Tesla Model 3 is the cheapest model for car insurance, at $2,965 per year.
Additional Coverage Options From Tesla insurance
Tesla’s insurance program has several specialized coverage options available to its customers. Wall charger coverage pays for any damages that your electrical power charger sustains. If you lose your electronic key, then electronic key replacement will pay up to $500 for replacement keys.
Vehicle automation packages will cover any liability damages if your Tesla has a collision while in autonomous driving mode. Finally, If you have a loan on your car and it is stolen, then Tesla’s loan gap insurance will pay off the balance of your loan.
