Updated: January 15, 2025
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The cost of Tesla Model Y insurance varies greatly by age. On average, a 16-year-old driver will pay $9,382 per year to insure a 2020 model, whereas a 40-year-old will spend $2,071 per year. For a 2022 model, a 16-year-old will spend an average of $9,897 per year, while a 40-year-old will only pay $2,189 per year.
MoneyGeek also scored different providers based on how they balance affordability and customer service to find the best Tesla Model Y insurance.
When considering insurance coverage for a Tesla Model Y, affordability is a crucial factor. Based on the data provided, here are the cheapest insurance providers for both full and minimum coverage for this vehicle:
Full Coverage Insurance:
For full coverage, GEICO stands out as the most affordable option:
- Annual Premium: $1,233
- Noted for providing a balance of affordability and quality service.
If you're insuring a 2020 model, GEICO offers an even more competitive rate:
- Annual Premium: $1,206
For a 2022 model, the costs slightly increase with GEICO:
- Annual Premium: $1,267
Minimum Coverage Insurance:
For minimum coverage, State Farm is the cheapest provider:
- Annual Premium: $490
Additional Considerations:
- For younger drivers, such as a 16-year-old insuring a 2022 Tesla Model Y, State Farm again provides the most affordable full coverage option:
- Annual Premium: $5,027
When prioritizing affordability while ensuring good service quality, GEICO is recommended as the top choice for full coverage. It achieves a MoneyGeek score of 90 out of 100, remarkable for its inexpensive premiums and reliable customer service. Minimum coverage takes advantage of State Farm's competitive pricing at $490 annually, offering another cost-effective solution.
For anyone seeking affordable car insurance, it's advisable to compare multiple quotes and consider both cost and service quality. Your age, vehicle model year, and location are significant factors that influence the final premium.
Based on the information provided, the best car insurance provider for a Tesla Model Y is GEICO. GEICO has the highest MoneyGeek score of 90 out of 100, indicating a strong balance between affordability and customer service. For full coverage, GEICO offers the most affordable premium at approximately $1,233 per year. This makes them the top choice among other providers for insuring a Tesla Model Y.
Age is a significant factor influencing car insurance premiums, particularly when it comes to insuring vehicles like the Tesla Model Y. Insurance companies assess risk based on a driver's age, with younger drivers typically facing higher rates due to their lack of experience and higher likelihood of accidents. As drivers gain experience and typically demonstrate safer driving habits, insurance premiums tend to decrease. Let's examine how age affects the cost of insuring a Tesla Model Y, using specific examples for different age categories.
Insurance Costs for Different Ages
1. 16-Year-Old Drivers:
- Younger, inexperienced drivers face the steepest premiums due to the higher risk they present.
- For a 2020 Tesla Model Y, a 16-year-old driver can expect to pay approximately $9,382 annually.
- This cost increases slightly for a newer 2022 model, with annual premiums averaging around $9,897.
2. 40-Year-Old Drivers:
- By age 40, drivers typically benefit from significantly lower premiums.
- A 2020 Tesla Model Y costs about $2,071 annually to insure for a 40-year-old driver.
- The cost for a 2022 model is slightly more, at around $2,189 per year.
Analysis of Decreasing Rates
- Rate Reduction Over Time:
- Insurance premiums generally decrease as drivers move from their teens to their twenties and beyond. The most significant reductions occur in the transition from teenage years to adulthood.
- For example, average rates show that a teen driver, paying around $9,639, will see costs drop significantly as they reach their twenties. These reductions reflect decreased risk and increased driving experience.
- Aging Into Stable Premiums:
- By their 30s and 40s, drivers generally pay much less for insurance, with premiums stabilizing around $2,130 annually for a Tesla Model Y. This stability occurs as individuals are recognized as lower risk compared to new drivers.
Optimal Strategies and Insights
- Family Policies for Teens:
- Adding young, inexperienced drivers to a family insurance policy can provide substantial cost savings compared to purchasing individual coverage. For example, using a family plan can reduce the financial burden significantly for insuring a Tesla Model Y.
- Choosing Providers:
- Different insurers offer varying rates, and it’s crucial to compare options to find the best deal. For instance, GEICO offers the most affordable full coverage for a Tesla Model Y, whereas State Farm may be the best for a teenage driver when shopping for a 2022 model.
- Impact of Car Value and Model Year:
- Newer models generally fetch higher premiums due to their higher replacement costs and the technology they leverage. Thus, a 2022 model will cost more to insure than an older model like the 2020 version.
In summary, understanding how premiums decrease with age and other contributing factors can empower consumers to make informed decisions about their car insurance. Whether opting for family plans, selecting the right provider, or choosing an older model, there are strategies to mitigate the high costs of insuring a vehicle like the Tesla Model Y.
Why Trust MoneyGeek? We collected thousands of car insurance quotes from Quadrant Information Services to analyze the average rates for a Tesla Model Y.
These rates were updated to reflect the average cost of car insurance for a Tesla Model Y as of 2023.
On average, Tesla Model Y insurance costs $2,207 per year, but different providers may offer varying rates. For instance, GEICO provides the cheapest full coverage policy at $1,233 per year, while Farmers has the highest premium at $2,782 per year.
For minimum coverage, State Farm is the cheapest option at $490 per year, whereas Progressive is the most expensive at $881 per year. By comparing multiple quotes, you can find the most affordable car insurance for your needs.
| GEICO | $1,233 |
| State Farm | $1,548 |
| Nationwide | $1,549 |
| Travelers | $2,538 |
| Progressive | $2,589 |
| Allstate | $2,632 |
| Farmers | $2,782 |
Insurance companies consider several factors to determine the cost of insuring a given Tesla Model Y. In general, the Tesla Model Y is expensive to insure compared to other models. It has an MSRP of $64,190 for 2022 models, making it a medium-value vehicle. In addition, because it’s an electric SUV, it has higher repair costs than standard vehicles, leading to higher insurance rates.
While cost is important, factors like a provider’s customer service and claims management reputation are also worth considering when shopping for the best Tesla Model Y insurance. Based on our study, these companies offer the best car insurance for this make and model:
GEICO is our top pick among the seven insurers we compared because it has the best blend of affordability and service quality. Customers can expect a good customer service experience without paying a high cost.
Offers the cheapest average rate among the providers in our study
Has a high customer satisfaction rating
Offers mechanical breakdown insurance (MBI)
Has a low claims management score
Doesn’t offer original equipment manufacturer (OEM) coverage
If you’re looking for a balance of affordability and service quality, GEICO offers the best Tesla Model Y insurance. You can also benefit from this company’s add-on coverages, including mechanical breakdown insurance (MBI).
Adding MBI to your policy ensures that all parts and systems on your Tesla Model Y are covered by GEICO, rather than just the specific items covered under most dealer warranties. Your vehicle must be less than 15 months old and have fewer than 15,000 miles to be eligible for this optional coverage.
Other add-on coverages available with GEICO are accident forgiveness and roadside assistance. Accident forgiveness prevents your rate from increasing after your first at-fault accident, while roadside assistance covers the cost of services like tire replacements, jumpstarts and lockout services if you experience a problem on the road.
Has the second-cheapest rates in our comparison group
Earned an above-average customer satisfaction rating
Has a worse than average claims management score
No gap insurance or original equipment manufacturer (OEM) coverage
State Farm is our runner-up, providing affordable premiums and excellent customer service. Although it has limited add-on coverages, the ones available are beneficial for most drivers.
For instance, State Farm’s roadside assistance helps cover the costs of various labor services if you are stranded on the side of the road. These include towing and mechanical labor for battery replacement, electrical problems, fluid leaks and other mechanical issues. If your key is lost, stolen or locked inside the vehicle, this add-on coverage will also cover up to one hour of locksmith services.
State Farm also offers rental car and/or travel reimbursement, which covers car rental costs up to chosen limits and travel expenses up to $500. It also repays up to $500 of your deductible if you get into an accident in your rental vehicle.
Your average car insurance costs will depend on the age of your Tesla Model Y. A full coverage policy for a 2020 model costs an average of $2,071 per year, but you can expect to pay roughly $118 more per year to insure a 2022 model. A car’s value usually depreciates over time, so rates for older models tend to be cheaper than for newer ones.
| 2022 | $2,189 |
| 2021 | $2,129 |
| 2020 | $2,071 |
Average car insurance costs also depend on your provider. GEICO is the most affordable option for insuring a Tesla Model Y. A full coverage policy with this insurer costs an average of $1,206 per year and $1,267 per year for a 2020 and 2022 model Tesla Model Y, respectively.
| GEICO | $1,276 |
| Nationwide | $1,542 |
| State Farm | $1,551 |
| Travelers | $2,568 |
| Progressive | $2,623 |
| Farmers | $2,845 |
| Allstate | $2,911 |
Because of their lack of experience on the road, teen and young adult drivers usually pay significantly higher premiums than those in their 30s and 40s. On average, a 16-year-old driver will pay $9,639 per year to insure a Tesla Model Y, whereas a 40-year-old will only pay $2,130 per year. Car insurance for teens becomes less expensive as they age, with rates stabilizing in their 20s.
Adding a teen to a family policy is a great way to save thousands of dollars on premiums every year since individual policies are much more expensive. In addition, teens under 18 are not legally allowed to purchase their own policy without a parent or guardian agreeing to cosign. For 16-year-olds driving a Tesla Model Y released in 2022, State Farm offers the cheapest full coverage policy at $5,027 per year, while Progressive is the most expensive company at $15,020 per year. Compare quotes from multiple providers to find the most affordable teen car insurance option for you.
| State Farm | $5,027 |
| GEICO | $5,876 |
| Nationwide | $6,305 |
| Travelers | $11,068 |
| Allstate | $12,262 |
| Farmers | $13,535 |
| Progressive | $15,020 |
Another important factor affecting the cost to insure a Tesla Model Y is your location. The cheapest car insurance varies by state — on average, Idaho has the lowest rates, and New York has the highest. When looking for the best car insurance for your Tesla Model Y, it's a good idea to compare multiple quotes from the most affordable insurers in your area.
| 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 |
It’s common to have questions about affordability and service quality while looking for Tesla Model Y insurance. Here are some answers to frequently asked questions.
The average cost of Tesla Model Y insurance is $2,207 per year, but rates vary by providers. In general, the Tesla Model Y is considered expensive to insure because it's an electric car and has high repair costs. GEICO offers the lowest average rate for a full coverage policy at $1,233 per year, $974 cheaper than the overall average for this car model.
The best Tesla Model Y insurance is offered by GEICO, which earned a MoneyGeek score of 90 out of 100. It outranked State Farm, Nationwide, Travelers and other major insurers, providing the best balance of affordable premiums and quality service. The average yearly cost of insuring a Tesla Model Y with GEICO is $1,233 per year for full coverage.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's resident Personal Finance Expert. 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's also a 5-time Jeopardy champion!
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.
