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How much does it cost to insure a Tesla?

How much does it cost to insure a Tesla?

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  • How much does it cost to insure a Tesla?
by Gill D on November 19, 2021

The cost of Tesla vehicle insurance varies greatly depending on the model and trim you select, as well as other factors that are often considered when setting automobile insurance premiums. These factors include your driving record, where you live, and the quantity of coverage you have purchased.

But on average, it could cost between USD $3,500 and $4,500 per year,

Amazingly, Tesla's newest model, the Model Y, is the most affordable to insure. While it isn't the most affordable Tesla model, it is a larger crossover than the Model 3. The Model X, Tesla's high-end SUV, is the most expensive Tesla to insure.

Tesla insurance costs vary by model, but owners should consider the influence of different trim levels on auto insurance premiums while selecting their vehicle. Not all insurers provide different prices based on the trim level. The difference in car cost, acceleration, and other vehicle features, however, translates into differing prices for insurers who do take this into account.

Tesla Model X

The safest drivers may experience even cheaper insurance prices when Tesla combines individual driving data into its rates. Some motor insurance providers have stated that Tesla owners often receive higher or reduced auto insurance quotations. These underwriting differences are usually based on safety data gathered by insurers.

Compare estimates from at least three different insurers to ensure you get the most economical Tesla insurance prices. Examining those who provide discounts expressly for Tesla vehicles or vehicles with semiautonomous technologies such as Autopilot can help you save a lot of money on premiums.

 

Consider Insurance Discounts

Other savings that are usually available from other insurers will be included in Tesla's insurance. The following discounts may be available depending on the driver's eligibility:

  • Multi-policy 
  • Good driver 
  • Persistency/loyalty 
  • Anti-theft device 
  • Mature driver improvement course 
  • Air bag 

Available Coverages

The following coverages are not unique to Tesla insurance, though not every insurance company offers them.

  • Roadside assistance coverage
  • Loan/lease gap coverage
  • Rental reimbursement
  • Total loss deductible waiver

Why are Teslas so expensive to insure?

Collision coverage is the main contribution to the high cost of Tesla insurance. Due to their high repair and maintenance costs, which are higher than those of comparable luxury vehicles, Teslas are extremely expensive to insure for collision damage. This is attributable to a variety of factors, including:

  • Only a small number of Tesla-approved body shops can fix the automobiles. Significant costs are incurred due to the training and equipment required to become qualified.
  • On average, electric automobiles are more expensive to fix and, as a result, to insure.
  • Compared to a steel frame, the Model S aluminum frame is more expensive and difficult to maintain.

For all of these reasons, even a little fender bender can easily cost several thousand dollars to repair a Tesla. The cost per collision may continue to climb as cars incorporate more unique equipment and technologies.

As a result, even while the technology in Tesla cars attempts to reduce crashes, as data suggests its Autopilot feature does, insurance must consider the size of a claim if an accident occurs.

 

What is the InsureMyTesla Program?

In August 2019, Musk developed Tesla Insurance in response to complaints from Tesla owners about exorbitant insurance costs. Previously, Musk had collaborated with Liberty Mutual Insurance to provide Tesla drivers premiums under the InsureMyTesla program. The premium charges were supposed to reflect the excellent safety measures that the corporation had included in the vehicles.

This initial effort, however, did not meet Musk's expectations, so he decided to take over and offer what he described as a far more appealing insurance option. He maintained the program in-house this time, but partnered with State National Insurance Company, a subsidiary of Markel Corporation, a specialty insurer.

Tesla Insurance is now only offered in California, but Tesla has stated that it will expand to other regions later in 2021. Tesla Insurance is set to launch in Texas and Illinois, where the business has already formed partnerships with insurance underwriters.

 

Disclaimer: This article is for informational purposes and may be subject to change. Only accredited insurance providers can provide Tesla owners with insurance details.

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