Compare the Cost of Tesla Model 3 Insurance by Model Year and Company

Q: What company offers the best car insurance for a Tesla Model 3?

State Farm is the best auto insurance company for the Tesla Model 3 . With a perfect MoneyGeek rating in affordability, it easily beats the competition. By offering the second-highest customer satisfaction rating of the providers analyzed, its customers enjoy first-rate service at an affordable price.

Tesla Model 3 insurance costs $2,117 annually, which is relatively expensive. State Farm offers the cheapest auto insurance for this model. Age, insurance provider and car model may affect your quoted premiums.

By Mark Fitzpatrick

Edited by Casie McCoskey

Updated: October 25, 2024

Advertising & Editorial Disclosure

Tesla Model 3 insurance rates will vary depending on the driver's age. Average annual costs for full coverage on a 2017 model are $8,704 for a 16-year-old but only $1,894 for a 40-year-old. The yearly price for a 2022 model is $9,582 for a 16-year-old and $2,086 for a 40-year-old.

MoneyGeek compared the best Tesla Model 3 insurance companies based on their total scores in affordability, customer service and claims fulfillment.

We also included detailed pricing information for some of the Tesla Model’s unique variants, including Tesla Model X, Tesla Model Y and Tesla Model S.

Key Takeaways

Insuring a Tesla Model 3 averages $2,117 per year or $176 per month. This cost is higher than for other car models due to the expensive repairs associated with electric vehicles.

State Farm offers the cheapest full coverage for a Tesla Model 3 at $1,381 per year. The most expensive option is Farmers at $2,565 per year, a potential savings of $1,184.

Insuring a 2017 Tesla Model 3 costs around $1,894 annually, while a 2022 model costs approximately $2,086 per year. Newer models generally have higher insurance costs due to their higher market value.

Car Insurance CostsTesla Model 3

2024

Table of Contents

Cheapest Insurer - State Farm

Best Insurer - State Farm

Runner-Up - Travelers

Costs by Model Year

Costs by Driver Age

Costs by Location

Why Trust MoneyGeek? We collected thousands of car insurance quotes from Quadrant Information Services to analyze the average rates for a Tesla Model 3.

These rates were updated to reflect the average cost of car insurance for a Tesla Model 3 as of 2023.

10Companies Compared

17,928Quotes Analyzed

Average Cost and Cheapest Companies for Insuring a Tesla Model 3

Insuring a Tesla Model 3 costs $2,117 a year on average, though this can vary by insurer. State Farm offers the most affordable average rates at $1,381 per year for a full coverage policy, while Farmers has the most expensive at $2,565.

The cheapest minimum coverage policy for a Tesla Model 3 is from State Farm and costs an average of $464 per year, while the most expensive is from Progressive, which charges $751 annually. To get the most affordable car insurance for your Tesla Model 3, shop around and get several quotes.

Data filtered by:Results filtered by:

Age

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Age:40

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Coverage:Full Coverage


State Farm	$1,381
Nationwide	$1,589
Travelers	$1,667
GEICO	$2,219
Progressive	$2,399
Allstate	$2,553
Farmers	$2,565

Is a Tesla Model 3 Expensive to Insure?

Insurance companies calculate rates for different car models based on several factors, including repair costs, theft rates and horsepower. Because of the higher cost of repairs, electric cars cost more to insure than conventional vehicles. This extra expense makes insuring a Tesla Model 3 more expensive than other car models.

Best Companies for Insuring a Tesla Model 3

Choosing the least expensive Tesla Model 3 insurance policy doesn't necessarily mean choosing the best option. When comparing auto insurance companies, looking into how they handle customer service and claims is essential. With these factors in mind, the best auto insurance providers for the Tesla Model 3 are as follows:

State Farm: MoneyGeek score 90 out of 100 ($1,381 per year)
Travelers: MoneyGeek score 88 out of 100 ($1,667 per year)

State Farm is the most affordable option compared to other major insurance providers. The company also scores highly for its exceptional customer service.

MoneyGeek Top Pick: State Farm

pros

Offers the most affordable policy for your Tesla Model 3

Excellent customer service rating

cons

Poor claims management rating

Doesn’t offer Deductible Modification or New Car Replacement

COMPANY HIGHLIGHTS

If you're shopping for Tesla Model 3 car insurance, we recommend State Farm above all other companies. The company’s rates are unbeatable, and it provides excellent customer service. Although it doesn’t offer many unique coverage options, most drivers can still benefit from its valuable add-ons.

If your vehicle breaks down or you get locked out, Roadside Assistance will pay for up to an hour of repairs or locksmith assistance. A tow truck will help you get off the road or tow you to the nearest service station.

If you are involved in an accident while operating a rental vehicle, Rental Car and Travel Reimbursement insurance will cover the costs of damages up to the policy's limits. All travel costs, including airfare, accommodations and meals, are reimbursable up to the $500 deductible.

Read MoneyGeek's State Farm Auto Insurance Review

MoneyGeek Runner-Up: Travelers

pros

Affordable coverage premiums for your Tesla Model 3

Excellent customer service rating

Offers Gap Insurance and Accident Forgiveness

cons

Below-average claims handling

No Deductible Modification coverage

COMPANY HIGHLIGHTS

We chose Travelers as the second-best option for insuring your Tesla Model 3 because of its affordability, coverage options and excellent customer service. Policyholders can benefit significantly from this blend of service options. The company also offers a variety of relatively uncommon coverages to consider for protecting your Tesla Model 3.

Gap Insurance protects you from financial loss if a wreck totals your financed or leased vehicle by covering the difference between the car's actual cash value and the remaining loan or lease balance. Accident Forgiveness will prevent a premium increase that would otherwise result from a single at-fault accident within a set period of safe driving.

Roadside Assistance is another service Travelers provides to help you get back on the road after an unexpected breakdown caused by issues like a dead car battery or a flat tire.

Read MoneyGeek's Travelers Auto Insurance Review

Cost of Insuring a Tesla Model 3 by Model Year

The insured vehicle's model year may impact its average auto insurance premium. A 2022 Tesla Model 3 costs an average of $2,086 per year to insure, while a 2017 model only costs $1,894. Due to the higher maintenance cost and the steady decline in value with age, insurance for a brand-new model is typically more costly.

Data filtered by:Results filtered by:

Age

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Age:40

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Coverage:Full Coverage


2022	$2,086
2021	$2,102
2020	$2,137
2019	$1,928
2018	$2,003
2017	$1,894

The average price of car insurance may vary depending on factors such as the vehicle’s model year and the chosen insurance company. State Farm offers the most affordable full coverage policies for the Tesla Model 3, with rates ranging from an average of $1,233 for the 2017 model year to $1,451 for the 2022 model.

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Model Year

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Model Year:2022

Age

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Age:40

Coverage

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Coverage:Full Coverage


State Farm	$1,451
Nationwide	$1,573
Travelers	$1,728
GEICO	$2,233
Allstate	$2,428
Progressive	$2,593
Farmers	$2,715

Cost of Insuring a Tesla Model 3 for 16- to 25-Year-Olds

Insuring a Tesla Model 3 with full coverage costs an average of $9,276 per year for a 16-year-old driver but only $2,025 for a 40-year-old. Car insurance for teenagers is far more expensive than rates for drivers in their 30s and 40s. Insurance premiums for teen drivers dramatically decline as they get older before reaching a plateau in their early 20s.

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Coverage

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Coverage:Full Coverage


16	$9,276
17	$7,575
18	$6,710
19	$4,645
20	$4,230
21	$3,282
22	$3,037
23	$2,821
24	$2,681
25	$2,407

Adding a teenage driver to a family plan usually costs much less than having them acquire their own policy. State Farm's average annual premium for a full coverage policy on a 2017 Tesla Model 3 with a 16-year-old driver is $3,990, while Progressive charges up to $13,090 for the same plan. These costs are wildly expensive compared to those paid by policyholders in their 40s for equivalent coverage. Teens should join their families' insurance plans and look for the most affordable teen auto insurance options with their parents.

Data filtered by:Results filtered by:

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Age:16

Model Year

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Model Year:2022

Coverage

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Coverage:Full Coverage


State Farm	$4,719
Nationwide	$6,500
Travelers	$7,293
Allstate	$10,314
GEICO	$10,693
Farmers	$12,933
Progressive	$15,280

How Does Location Affect the Cost of Tesla Model 3 Insurance?

Your location may significantly impact your auto insurance premiums more than any other factor combined. If you're from Idaho, you’ll likely get auto insurance for much less than someone in Florida, the most expensive state to buy car insurance. If you own a Tesla Model 3 and want cheaper auto insurance rates, you should get several quotes from the most affordable companies in your area.

Data filtered by:Results filtered by:

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Age Group:30-59

Coverage

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Coverage:Full Coverage


Alabama	Nationwide	$709	$59
Alaska	State Farm	$699	$58
Arizona	Root Insurance Company	$682	$57
Arkansas	State Farm	$629	$52
California	AAA California	$1,001	$83
Colorado	American National P&C	$541	$45
Connecticut	GEICO	$693	$58
Delaware	State Farm	$881	$73
District of Columbia	GEICO	$662	$55
Florida	State Farm	$1,058	$88
Georgia	Country Financial	$665	$55
Hawaii	GEICO	$565	$47
Idaho	American National P&C	$299	$25
Illinois	Country Financial	$663	$55
Indiana	American Family	$555	$46
Iowa	State Farm	$509	$42
Kansas	Nationwide	$670	$56
Kentucky	Nationwide	$790	$66
Louisiana	Louisiana Farm Bureau	$1,048	$87
Maine	Concord Group	$521	$43
Maryland	Progressive	$938	$78
Massachusetts	State Farm	$483	$40
Michigan	GEICO	$898	$75
Minnesota	State Farm	$797	$66
Mississippi	Direct General Insurance	$723	$60
Missouri	Nationwide	$909	$76
Montana	Progressive	$437	$36
Nebraska	American National P&C	$405	$34
Nevada	CSAA	$940	$78
New Hampshire	State Farm	$540	$45
New Jersey	Plymouth Rock Assurance	$895	$75
New Mexico	State Farm	$644	$54
New York	Kemper	$781	$65
North Carolina	Erie	$630	$52
North Dakota	American Family	$616	$51
Ohio	Nationwide	$485	$40
Oklahoma	State Farm	$662	$55
Oregon	State Farm	$706	$59
Pennsylvania	Nationwide	$580	$48
Rhode Island	State Farm	$700	$58
South Carolina	American National P&C	$463	$39
South Dakota	Allstate	$746	$62
Tennessee	State Farm	$579	$48
Texas	State Farm	$699	$58
Utah	Nationwide	$725	$60
Vermont	State Farm	$493	$41
Virginia	American Family	$601	$50
Washington	PEMCO	$534	$44
West Virginia	Erie	$784	$65
Wisconsin	GEICO	$556	$46
Wyoming	State Farm	$745	$62

Frequently Asked Questions About Tesla Model 3 Insurance

When shopping for Tesla Model 3 insurance, most customers are concerned about cost and value. We've included some of the most often-asked questions and our answers to assist you in making a more informed choice.

What company has the cheapest car insurance for a Tesla Model 3?

Insuring a Tesla Model 3 costs $2,117 per year on average. Its insurance costs are higher than average due to its status as an electric vehicle. State Farm offers the lowest rates for insuring a Tesla Model 3, at an average of $1,381 per year for a full coverage policy.

What company offers the best car insurance for a Tesla Model 3?

State Farm is the best auto insurance company for the Tesla Model 3. With a perfect MoneyGeek rating in affordability, it easily beats the competition. By offering the second-highest customer satisfaction rating of the providers analyzed, its customers enjoy first-rate service at an affordable price.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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