Teslas cost around $55 monthly for minimum coverage car insurance and $214 for full coverage. The automaker is the second most expensive overall, ranking 22nd out of 23 for affordability among the vehicle manufacturers we studied.
Tesla Car Insurance
Updated: February 13, 2025
Advertising & Editorial Disclosure
Key Takeaways
State Farm and Geico offer the best and cheapest overall car insurance for Tesla vehicles with rates starting at $33 monthly.
Tesla auto insurance costs range from $399 to $3,365 annually for most drivers, but this can depend on various factors like age, model, and coverage type chosen.
Tesla car insurance is generally more expensive than most top automotive brands, ranking 22nd out of 23 automakers we studied for both minimum and full coverage.
How Much Is Tesla Insurance on Average?
Coverage Level | Average Monthly Rate | Average Annual Rate | Affordability Ranking (Out of 23) |
|---|---|---|---|
Minimum Coverage | $55 | $663 | 22nd |
Full Coverage | $241 | $2,571 | 22nd |
*Rates are for a 40-year-old driver with good credit and no driving violations insuring 2012-2022 models for the Tesla Model 3, Y, X and S.
Tesla Car Insurance Cost by Model
Through our research, we found the most expensive Tesla model is the Tesla Model X with monthly rates of $71 for minimum coverage and $242 for full coverage. The Model 3 is the least expensive to insure with average rates of $51 per month for minimum coverage and $169 monthly for full coverage.
Tesla Model | Annual Minimum Coverage Rate | Annual Full Coverage Rate |
|---|---|---|
$610 | $2,025 | |
$623 | $2,130 | |
$856 | $2,902 | |
$769 | $2,767 |
*Rates are for a 40-year-old driver with good credit and no driving violations for model years ranging from 2012-2022.
Tesla Car Insurance Cost by Model Year
A good rule of thumb is that more expensive your car's value is and the newer it is, the more car insurance will cost and vice versa. Below, you can compare costs for your Tesla vehicle by model and year.
Data filtered by:Results filtered by:
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Tesla Model:Tesla Model 3
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Model Year:2022
| Tesla Model 3 | 2022 | $604 | $2,086 |
*Rates are for a 40-year-old driver with good credit and no driving violations.
Tesla Car Insurance Cost by Age
Tesla insurance can vary anywhere from $680 per year to around $11,781 annually depending on your age and coverage level chosen. In general, teens pay the most for car insurance and costs decrease until you are about 60 years old. Once you pass this point, auto insurance increases in cost slightly as you reach more senior ages. In the table below, we show how age affects costs for Tesla insurance.
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Age:40
| 40 | $740 | $2,566 |
*Rates are for a driver with good credit and no driving violations.
Is Tesla Insurance Expensive?
Tesla vehicles often have higher insurance premiums due to their high value and costly parts, which make repairs or replacements more expensive after an accident. Tesla drivers are also some of the riskiest on the road, placing second in a recent LendingTree study, which impacts rates even for those without driving violations.
How Expensive Is Tesla Insurance Compared To Similar Vehicles?
To put into perspective how much more expensive Tesla is than other similar models, we've compared rates for a 2024 Model Y to comparable luxury sedans and EVs in terms of MSRP. We found that while minimum coverage rates are similar, full coverage rates are up to 29% more expensive.
Make and Model | Average MSRP | Annual Minimum Coverage Rate | Annual Full Coverage Rate |
|---|---|---|---|
Tesla Model Y | $49,380 | $570 | $2,207 |
Audi A4 | $48,045 | $573 | $1,729 |
BMW I3 | $48,970 | $549 | $1,729 |
BMW 3 Series | $53,045 | $580 | $1,708 |
Cheapest Tesla Car Insurance Companies
The cheapest overall car insurance company for Tesla vehicles is State Farm with average monthly rates of $36 for minimum coverage and $144 for full coverage. However, Travelers, Nationwide, Geico and Progressive are also all affordable options.
| State Farm | $36 | $144 |
| Travelers | $48 | $178 |
| Nationwide | $62 | $164 |
| GEICO | $43 | $191 |
| Progressive | $55 | $208 |
Cheapest Car Insurance By Model
While the above companies are the cheapest overall, State Farm is the cheapest car insurance for the Tesla Model 3, Model S, and Model X. However, Geico is the most affordable overall for the Tesla Model Y.
Tesla Model | Cheapest Company | Lowest Monthly Minimum Coverage Rate | Lowest Monthly Full Coverage Rate |
|---|---|---|---|
Tesla Model 3 | State Farm | $33 | $103 |
Tesla Model Y | Geico | $37 | $101 |
Tesla Model X | State Farm | $35 | $140 |
Tesla Model S | State Farm | $36 | $115 |
Cheapest Tesla Car Insurance By Model Year
Below you can dig deeper and find the cheapest overall Tesla car insurance company for your particular model and year.
Data filtered by:Results filtered by:
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Model:Tesla Model 3
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Model Year:2020
| State Farm | $399 | $1,442 |
| Travelers | $533 | $1,712 |
| Nationwide | $542 | $1,768 |
| GEICO | $519 | $2,456 |
| Allstate | $517 | $2,506 |
Cheapest Tesla Car Insurance By Age
The lowest overall Tesla Insurance rates by age vary anywhere from $38 per month to $470 monthly, all offered by State Farm. Below, you'll find the top five most affordable providers broken down by different ages for Tesla vehicles.
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Age:16
| State Farm | $1,652 | $5,639 |
| Travelers | $2,603 | $9,013 |
| Nationwide | $3,875 | $8,264 |
| GEICO | $2,819 | $10,945 |
| Allstate | $2,665 | $14,285 |
Best Car Insurance For Tesla Vehicles
From our research, we found that the best overall companies to insure your Tesla with are State Farm, Nationwide, Travelers, Geico and Progressive. Each company has a great mix of low rates, extensive coverage options, and good customer service reputations.
| State Farm | 90 |
| Nationwide | 87 |
| Travelers | 87 |
| GEICO | 86 |
| Progressive | 83 |
State Farm: Best For Most Tesla Drivers
pros
High customer satisfaction ratings
Lowest rates for most Tesla drivers
Extensive discounts for young drivers
cons
Higher rates for Tesla Model Y owners
COMPANY HIGHLIGHTS
For Tesla vehicles, State Farm stands out with the cheapest rates overall for their vehicles with the lowest possible premiums for 3 out of 4 of the models we studied (Model 3, X, and S) regardless of driver profile. However, where the company stands out most is its higher than average customer service and claims satisfaction, ranking 6th overall for claims and within the top 5 for overall satisfaction in 42 out of 52 states (top 3 in 15 out of 50). They also offer particularly attractive discounts for drivers under 25 with reductions for students and a defensive driving program that can save you up to 20%.
Geico: Best for Tesla Model Y Owners
pros
Most affordable rates for Tesla Model Y owners
Great customer satisfaction ratings in the North East and for their Usage-based program
Most extensive discount selection, especially for federal employees and military
cons
Lower than average customer service ratings nationwide
Expensive rates for all other Tesla models
COMPANY HIGHLIGHTS
While State Farm was the most affordable for most other Tesla models, Geico stands out for Model Y owners with the lowest rates in every category we studied. Out of all of the providers on our list, Geico also offers the most extensive discount selections with unique premium reductions for federal employees, military, and younger drivers that can save you up to 25%. For those in New England, Texas and New York the company ranks within the top 5 for overall customer satisfaction and 2nd nationwide for their usage-based discount program DriveEasy (Which can save you up to 30% on premiums).
Nationwide: Best Car Insurance Coverage Options For Tesla Owners
pros
Offers a pay-per-mile program and unique add-on coverages
Low cost full coverage policies for Tesla vehicles
Highest-rated usage-based discount program in the country
cons
Expensive minimum coverage policies
Much lower than average customer satisfaction nationwide
COMPANY HIGHLIGHTS
While not the most affordable for minimum coverage policies, Nationwide frequently is within the top three most affordable full coverage car insurance policies for Tesla vehicles. Uniquely the company offers coverage options for a pay-per-mile car insurance program called SmartMiles and a vehicle value upgrade add-on that replaces your car with a new vehicle of comparable value if your car is totaled. The company also has the best customer satisfaction rating for their usage-based car insurance discount program SmartRide according to J.D. Power (tied for the largest possible discount in the nation of up to 40%)
How To Find The Best Cheap Car Insurance Company For Your Tesla
Below we've broken down some core tips to get you started on getting the best deal for Tesla insurance on your vehicle.
- 1
Assess Your Needs
Start by deciding how much insurance you need, what deductible you’re financially comfortable with and other optional coverages that can help you save more in case of an accident. You can use our car insurance coverage needs calculator to get a personalized recommendation and start comparing options.
- 2
Research Average Costs and Discounts
Research Tesla insurance costs to get a better idea of how much you are saving on average once you begin comparing provider quotes. This will give you a good idea of exactly how good of a deal you are getting. Also, check which discounts are available so you can be on the lookout for ones specific to your vehicle and driver profile when comparing providers.
- 3
Compare Multiple Providers
Gather quotes from different providers and make sure to compare apples to apples in terms of coverage, deductibles and limits so you can compare. Also, research company reputations, discounts, and coverage offerings to get a good idea of if the company is right for you.
- 4
Consider Tesla's Insurance Program
When comparing providers, you should check out Tesla's insurance program that bases your rates primarily on driving behaviors, similar to telematics insurance programs. Many Tesla drivers on forums have reported lower rates than traditional providers so it is worth a look to see if it is worthwhile. However, keep in mind the program is only available in Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia.
Tesla Auto Insurance Cost: Bottom Line
Tesla vehicle insurance costs are among the highest in the U.S., well above average compared to other brands. However, affordable options are available. Compare providers across multiple platforms to find the best deal.
Tesla Car Insurance: FAQ
Below are MoneyGeek expert answers to frequently asked questions about Tesla car insurance.
Which insurance company is the cheapest for Tesla?
State Farm, Nationwide and GEICO are the three cheapest car insurance providers for all Tesla Models regardless of coverage level, driver profile and model.
How much is Tesla car insurance?
On average when considering all models, Tesla car insurance costs around $55 monthly or $663 yearly for minimum coverage and $214 per month or $2,571 yearly for full coverage. However, rates can vary widely depending on your driver profile, model and coverage level chosen, ranging anywhere from $399 to $11,781 per year.
Is car insurance on a Tesla more expensive?
Yes, a Tesla is typically more expensive to insure because it's both an electric car and luxury vehicle, leading to higher MSRPs and repair costs overall. Tesla parts are also much more specialized than other brands, making it more difficult to source and increasing the costs of repair.
Which Tesla model is the cheapest to insure?
Overall, the Tesla Model 3 is the cheapest overall Tesla vehicle to insure mostly due to it's lower value and repair costs.
How We Determined Tesla Auto Insurance Costs
We calculated Tesla insurance costs using data from Quadrant Information Services. Rates are based on the following driver profile:
- 40-years-old
- Good credit
- No driving violations
- 12,000 miles driven annually
Coverages used for minimum coverage are based on state requirements. Full coverage includes a 100/300/100 liability insurance split and comprehensive and collision coverage with a $1,000 deductible.
How We Chose Best and Cheapest Car Insurance For Teslas
To accurately calculate the best car insurance for Tesla, MoneyGeek gathered and evaluated insurers using a comprehensive scoring system based on five key factors, each weighted by its significance. Customer satisfaction, accounting for 35% of the score, is gauged using J.D. Power's study and the NAIC complaint index. Affordability, which contributes 30%, assesses how an insurer's rates compare to competitors, using data from Quadrant. Claims, with a 20% weightage, are based on the J.D. Power Claims Study and the CRASH Report Card. Coverage, making up 10%, focuses on four essential offerings: roadside assistance, rental car reimbursement, OEM coverage, and gap insurance. Lastly, stability, at 5%, examines an insurer's financial health through AM Best ratings. The following independent agencies and reputable authorities provide us with data:
- AM Best: This company provides insurance companies with credit ratings and data analytics.
- J.D. Power: This firm specializes in insurance industry research, analytics and rankings.
- National Association of Insurance Commissioners: The NAIC serves as a regulator that protects consumer interests. Its key function is to provide data and analysis of insurance providers so consumers can make informed decisions.
- Quadrant Information Services: This industry leader offers car insurance pricing analytics and other services based on accurate comparative data.
Data Sources and Depth: We examined 80,676 quotes from 7 companies using information from state insurance departments and Quadrant Information Services.
Driver Profile: To determine average annual car insurance costs, MoneyGeek created a driver persona based on the following characteristics:
- Male, 40 years old, Single
- Clean driving record
We modified this profile for driver age, geographic location, and driving history to discover rates for various driver profiles.
Coverage Levels and Deductibles Explained:
A deductible is the sum of money you pay when you file a claim before the insurance company’s payment kicks in. Liability insurance only covers damage to other people's property. In contrast, full-coverage policies include comprehensive insurance, which covers damage to your car from events like weather and fire, as well as collision coverage, which pays for damage to your car if you collide with something or another vehicle.
The term 100/300/100 means:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.