Jerry Insights:
- The model matters: Tesla’s more affordable Model S and Y vehicles may be cheaper to insure than its luxury models.
- Because Tesla sells technologically advanced electric vehicles, they may be more expensive to insure than other cars, including EVs.
- If you’re planning to buy a Tesla, leave room in your budget for monthly, semi-annual or annual car insurance costs.
Tesla transformed electric vehicles from a niche market to a mainstream force. The manufacturer wins customers with its futuristic design, focus on performance, sustainable energy solutions and advanced battery technology.
But drivers pay for the innovation — both at the dealership and once they drive off the lot.
While Tesla drivers save on gas, car insurance rates can be above average due the high costs associated with owning an electric vehicle and repair complexity. Whether you’re an old school Model S driver or plotting your new Model Y purchase, here are Tesla car insurance rates and tips to help you shop for coverage.
How much does Tesla car insurance cost?
On average, it costs $537 per month to insure a Tesla with full coverage car insurance.
The cost to insure your own Tesla will depend on the model, year and other major factors like your driving history, location, age and desired coverage level. Expensive vehicles have expensive parts and, as in Tesla’s case, may be more complex to repair, which drives up insurance costs.
Because your vehicle is one of the many factors that insurance companies use to determine your premium, it’s wise to compare quotes from multiple providers. You’ll likely need full coverage if you lease or finance a Tesla.
Average car insurance quotes for Tesla models
|
Car Model
|
Avg Monthly Quote
|
|---|---|
| Model 3 | $549 |
| Model S | $643 |
| Model X | $710 |
| Model Y | $490 |
Click here to see average rates by model for minimum coverage insurance
|
Car Model
|
Avg Monthly Quote
|
|---|---|
| Model 3 | $153 |
| Model S | $145 |
| Model X | $164 |
| Model Y | $138 |
If you have a loan or lease on your vehicle, the lender will require
When they price your policy, auto insurers consider safety features, as well as the cost to repair or replace parts.
With their high-tech systems and notoriously difficult-to-source parts, Teslas can be costly to insure, but the model you choose can significantly affect your rate. Here are some attributes that affect your Tesla insurance premium.
- Safety features: Teslas come with advanced safety features like park assist, which alerts drivers when an object is nearby as they’re parking, and automatic emergency braking. These features may result in discounts from some insurers, but if the tech is costly to replace they can also drive up premiums.
- Vehicle class: The Model X, an SUV, costs more than the Model 3 sedan, and is therefore likely more expensive to insure.
- Engine size: The Model X Plaid boasts 1,020 horsepower, while the Model 3 Performance edition comes in at just over 500 horsepower. Insurers consider more powerful engines to be riskier, which shows up in your premium.
- Availability of replacement parts: If problems arise after you visit a non-Tesla mechanic for repairs, your warranty may be affected. This policy discourages drivers from shopping for more affordable repairs. It also leads to a limited number of suppliers for both parts and repairs, all of which add to your bill.
- Cost of repairs: Since Teslas rely on expensive parts like lithium-ion batteries, your insurer will likely charge extra to offset any claims they may have to pay out.
- Luxury model: Not all Teslas are luxury cars, but those that are often cost more to insure.
About Tesla’s own insurance company
Tesla offers its own car insurance in 12 states, which is available for quoting and purchase through the company’s portal or app. In all states it serves except California, Tesla insurance costs are partially determined by your driving habits, which the carmaker collects data on using the car’s telematics technology.
The Tesla Insurance company is young compared to most insurance companies, which could explain why its ability to meet its financial obligations not rated by AM Best. The carrier has three subsidiaries in operation, all of which got far more complaints in 2024 than the industry standard for companies similar in size.
Cheapest car insurance for Teslas
The cheapest car insurance company we found for Tesla drivers is Aspire Advantage, with a monthly average rate of $287.
Any time you buy a new vehicle, it’s wise to get multiple car insurance quotes. As with most purchases, the first estimate may not be the cheapest, and if you haven’t owned a Tesla before you may not have a baseline for what a “good” rate is.
Full coverage is usually the best option if you’re planning to buy a later model, not just because a lender would require it, but because it will almost certainly save you money if your car is damaged. This coverage includes at least state-mandated liability insurance levels, as well as collision and comprehensive coverages. You’ll pay a deductible before your insurance kicks in, but on a pricey vehicle like a new Tesla, the deductible can be a fraction of the repair cost.
Cheapest companies for Tesla car insurance quotes
|
Insurance Company
|
Avg Monthly Quote
|
|---|---|
| AAA | $287 |
| ROOT | $321 |
| Safeco | $351 |
| Embark General | $383 |
| Mercury | $406 |
| Geico | $434 |
| Progressive | $455 |
| The General | $492 |
| Trexis | $518 |
| National General | $531 |
Let’s say you want to save money and carry only the legally-required coverage for your state — the least you can pay to drive off the lot, assuming you aren’t leasing or financing the car. Your coverage would pay others’ expenses if you cause an accident, but you’d pay out-of-pocket for any repairs to your own vehicle — generally a lot more than the insurance would cost.
For this reason, the minimum coverage is usually recommended for older used vehicles that are cheaper to fix, or that you may not fix at all.
Learn more: Liability vs. full coverage insurance
Here are the average rates that insurers have quoted Tesla drivers for minimum coverage.
|
Insurance Company
|
Avg Monthly Quote
|
|---|---|
| Geico | $81 |
| Safeco | $93 |
| ROOT | $95 |
| Mercury | $109 |
| Embark General | $110 |
| Freedom | $117 |
| Progressive | $123 |
| Bluefire | $128 |
| Liberty Mutual | $134 |
| Electric | $143 |
Average Tesla car insurance costs by state
If you want a number closer to your local average, flip through the list below to see full coverage costs in your state. Car insurance rates for Teslas will depend on where you live due to different levels of state regulation and coverage requirements. Climate hazards, related claims and population density also factor into your local car insurance costs.
|
State
|
Avg Monthly Tesla Quote
|
|---|---|
| AL | $329 |
| AR | $341 |
| AZ | $551 |
| CA | $511 |
| CO | $616 |
| CT | $567 |
| DC | $892 |
| DE | $557 |
| FL | $592 |
| GA | $624 |
Best car insurance for Teslas
Each year Jerry’s editorial staff evaluates the best car insurance companies based on industry rating factors such as combined subsidiary complaints and relative ability to pay out claims. Here are our top six companies for 2025.
| Insurance company | Best for: | Jerry star rating (out of 5) |
|---|---|---|
| Geico | Overall car insurance. | 5 |
| Auto-Owners | Small insurance company. | 4.9 |
| Nationwide | Usage-based insurance. | 4.7 |
| Allstate | Discounts. | 4.7 |
| Farmers | Customizable options. | 4.6 |
| Progressive | Loyal policyholders. | 4.6 |
While these companies are good for a lot of drivers, only some are available in every state. Additionally, some companies have better service records in certain states. To see the best car insurance companies in your state, click below.
Tesla Model 3 insurance costs
On average, it costs $549 per month for full coverage insurance on a Tesla Model 3, though your rate will depend on the model year and your characteristics.
The Model 3 is Tesla’s base model, but the manufacturer didn’t skimp on the features. The vehicle comes with a 15-inch touch screen, 360-degree visibility and the ever popular “camp mode,” which keeps cabin temperature stable and entertainment features on all night. The Long Range battery configuration costs $42,490 MSRP and the Performance configuration starts at $54,990, according to the manufacturer. Though the Model 3 is Tesla’s most affordable vehicle, those prices are higher than some other makes and models, meaning drivers can expect comparable insurance costs.
|
Car Model Year
|
Avg Monthly Quote
|
|---|---|
| Model 3 2025 | $623 |
| Model 3 2024 | $537 |
| Model 3 2023 | $534 |
| Model 3 2022 | $525 |
| Model 3 2021 | $528 |
Tesla Model S insurance costs
It costs an average of $643 per month to insure a Tesla Model S, though averages can’t say much about what your rate will be, so it’s wise to compare quotes.
The Model S is Tesla’s high-end sedan. Not only is this one of the fastest electric cars available, the Model S also boasts up to 410 miles of range and a spacious cabin. The vehicle’s functionality, combined with novelties like Tesla Arcade, multi-device bluetooth and the ability to reduce road noise, add to the car’s price tag. The basic Model S is $79,990 MSRP, while the higher-powered Plaid configuration starts at $94,990.
As a luxury car with a high-powered engine, drivers can expect to pay more to insure the Model S than they would for a more basic vehicle.
Here are the average rates that Jerry customers have been quoted for full coverage of the Model S on various model years.
|
Car Model Year
|
Avg Monthly Quote
|
|---|---|
| Model S 2025 | $1,033 |
| Model S 2024 | $675 |
| Model S 2023 | $804 |
| Model S 2022 | $684 |
| Model S 2021 | $689 |
Tesla Model X insurance costs
On average, Jerry customers with a Tesla Model X have been quoted $710 per month, though rates are highly individual and your own will be different.
Tesla’s Model X is the manufacturer’s flagship SUV. This model can seat up to seven passengers, includes a panoramic windshield and the trailer hitch comes standard. The 17-inch touchscreen and 360-degree visibility add a lavish feel to the functional car.
At $84,990 MSRP for the basic configuration and $99,990 MSRP for the Plaid configuration, the Model X is the manufacturer’s most expensive SUV, meaning drivers can expect to pay a high insurance premium. The recognizable Falcon Wing doors are eye-catching and functional, but your local mechanic may not have the parts or expertise to fix them if they’re damaged, which could add to your insurance rate.
|
Car Model Year
|
Avg Monthly Quote
|
|---|---|
| Model X 2025 | $725 |
| Model X 2024 | $751 |
| Model X 2023 | $778 |
| Model X 2022 | $491 |
| Model X 2021 | $648 |
Tesla Model Y insurance costs
The Model Y is spacious like a Model X but sits more in the Model 3’s price range — a combination that made it the world’s best-selling vehicle in 2023, according to automotive analytics firm JATO Dynamics. One of the biggest perks this SUV offers is the optional third row of seats, making it a practical family car in a techy Tesla wrapper.
With a sticker price of $51,490 for the Performance configuration and $59,990 for the Long Range configuration, the Model Y’s price is comparable to other electric SUVs. This means your premium could be on the more affordable side.
Here’s the average full coverage rate that Jerry customers have been quoted for the Model Y on various model years.
|
Car Model Year
|
Avg Monthly Quote
|
|---|---|
| Model Y 2026 | $456 |
| Model Y 2025 | $509 |
| Model Y 2024 | $483 |
| Model Y 2023 | $448 |
| Model Y 2022 | $525 |
Shopping tips for Tesla car insurance
Whether you’re in the market for a new Tesla of your own or looking to switch to a better insurer, take the time to make sure you’re getting the right coverage. State-mandated coverages only protect others financially from a wreck you cause in most states — they don’t do much to repair or replace your Tesla if it’s stolen or damaged. To protect the investment you made in your Tesla, consider collision and comprehensive coverage, and take a look at uninsured motorist coverage if your state doesn’t already mandate it — these coverages combined can make you whole again if something happens to your Tesla.
| Coverage | Definition |
|---|---|
| Collision insurance | An optional coverage type that pays to repair or replace your car if it’s damaged in a collision with another vehicle. You can only file an accident-related claim for your vehicle’s repairs if your policy has collision coverage. |
| Comprehensive insurance | An optional coverage type that covers damage to your vehicle caused by non-collision hazards, such as car theft, falling tree branches, hail and other unexpected events. |
| Bodily injury liability (BI) | Pays others’ medical costs in an accident you cause, up to your policy limits. It’s mandatory in most states. |
| Property damage liability (PD) | Pays for repairs or replacements of any vehicles or objects you damage in a crash, up to your policy limits. It’s mandatory in most states. |
| Personal injury protection (PIP) | Helps cover medical expenses for you and your passengers after a car accident, regardless of who caused it. This is required in some states. |
| Medical payments | Additional coverage outside of PIP that pays for medical care for you and your passengers after an accident, regardless of who caused it. This is optional in most states. |
| Uninsured/underinsured motorist coverage (UM/UIM) | Covers you, your passengers and any property damage in a case where the other driver is at fault but doesn’t have insurance, or carries insufficient coverage to pay for your costs. This is required in some states. |
In addition to deciding which coverages you need, you’ll need to designate how generous they are.
Liability insurance comes in predetermined limits, typically as a set of three numbers limiting the amount your insurer will pay for bodily injuries per person, per claim and the maximum amount it will pay for property damage per covered incident. Common liability limits are $100,000 for a per-person BI limit, $300,000 for a per-accident limit and $100,000 for property damage, or 100/300/100 for short.
Comprehensive and collision coverage always have the same limit — your car’s total cash value. However, both come with a deductible, or amount you’d have to pay for repairs before coverage kicks in. Common car insurance deductibles are $250 to $2,000, with higher deductibles translating to lower premiums. It’s wise to keep your deductibles to the amount you could pay in an emergency.
How to keep Tesla car insurance costs low
Here are some ways to lower your Tesla car insurance rate:
- Get multiple quotes: Comparison shop for insurance coverage to determine the best price for your desired coverage level. Don’t forget to double-check that prices are for similar liability limits and deductibles.
- Research rates before you buy: If you’re buying a Tesla, research insurance rates for different models ahead of time. Knowing roughly how much you’ll spend on insurance can help you budget for the monthly car payment.
- Bundle your insurance policies: Some insurers offer rate discounts when you bundle your home and auto insurance.
- Participate in a telematics program: Some insurance companies use technology to track your driving habits. You could qualify for car insurance discounts if you show you are a safe driver.
- Take a defensive driving class: Your insurer may offer a discount for completing a safe driving course.
FAQs
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Is Tesla insurance cheaper than insurance for other cars?
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Why are Tesla insurance costs so high?
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How do I get insurance from Tesla?
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What if I don’t see my state listed for Tesla insurance?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.
Annie is a writer and editor at Jerry with more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet. Her past work has appeared in the Associated Press, USA Today and The Washington Post. Her work has been cited by NorthWestern University and Harvard Kennedy School. Annie served as a spokesperson for NerdWallet during her time at NerdWallet and has been featured in New York Magazine, MarketWatch and on local television and radio stations.
Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California and Texas. She has a bachelor’s degree in journalism from the University of Minnesota.
Lacie Glover is a Lead Writer and Editor with sixteen years’ experience in the insurance category. Prior to Jerry, she spent more than a decade on NerdWallet’s content team writing, editing and then overseeing the auto insurance category, as well as dabbling in other insurance and automotive topics. Prior to her career in the online personal finance content space, Lacie spent time in the hard sciences, in clinical research and chemistry labs. She has a bachelor’s degree from Colorado State University.
