How Much Does It Cost to Insure a Tesla?
Last Updated on November 13, 2025
When shopping for new cars, it’s important to consider the cost of car insurance.
Tesla car insurance costs vary depending on your model and other factors. However, most Tesla drivers spend between $3,000 and $5,000 per year for full coverage car insurance.
How much does Tesla auto insurance cost? What’s the best insurance company for Tesla drivers? Keep reading to discover what you need to know about Tesla insurance costs.
Key Takeaways:
- Most Tesla drivers pay between $2,500 and $4,500 per year for full-coverage insurance, depending on model, location, and driving behavior.
- Tesla Insurance is available in multiple states and often uses real-time driving behavior to calculate premiums.
- Insurance costs vary significantly by model, and the original fixed numbers for each Tesla model should be updated to current ranges.
- Tesla repair costs remain higher than average due to advanced sensors, electronics, and calibration needs, which keeps insurance premiums elevated.
Average Tesla Insurance Cost
According to rates provided to our model driver profiles, the average Tesla driver can expect to pay between $2,500 and $4,500 per year for full coverage car insurance, depending on model, location, and driving behavior.
The average American now pays closer to $1,700–$2,100 per year for full coverage car insurance, meaning Tesla drivers still pay significantly more than average.
Depending on your Tesla model, you could pay significantly more or less than $4,500 per year for car insurance. The cost of car insurance varies depending on your coverage options, your driving history, your insurer, your ZIP code, and other factors.
In recent years, insurance costs for Tesla vehicles have also been influenced by rising repair expenses and more data on EV accident claims. Many insurers have updated their pricing models to account for Tesla-specific repair factors, like sensor calibration and specialized labor. Additionally, Tesla’s own insurance program now uses real-time driving behavior in many states, which can raise or lower premiums depending on your habits behind the wheel.
Tesla Insurance Cost by Model
Different Tesla models have different insurance costs. Depending on which model of Tesla you drive, you could pay anywhere from $3,000 to $6,000 per year for car insurance.
Understandably, higher-end Tesla vehicles cost more to insure than cheaper options.
Insurance costs vary widely by model and trim, but typical 2025 ranges look like this:
- Model Y: ~$2,400–$3,300 per year
- Model 3: ~$2,500–$4,400 per year
- Model S: ~$4,000+ per year
- Model X: ~$4,000+ per year
Each model has different trim options. You could pay more or less for car insurance depending on whether you have the base model or a model with extra features.
These earlier model-by-model estimates are now more fluid than fixed, as insurance rates for Teslas vary more widely than they did a few years ago. Updated 2025 ranges for these models tend to span broader price points due to changes in repair costs, parts availability, updated safety technology, and the redesign of certain models (such as the refreshed Model 3). It’s now more accurate to compare multiple quotes rather than rely on static yearly averages.
Other Factors that Impact Tesla Car Insurance Premiums
Insurers consider hundreds of factors when calculating rates. Depending on the following factors, you could pay significantly more or less to insure a Tesla:
Coverage Options: Most Tesla drivers carry full coverage car insurance. However, some Tesla drivers carry minimum liability insurance, which is the only insurance required in most states. If you carry minimum liability insurance, then minimum liability premiums for Teslas are still cheaper than full coverage, but typically start closer to $1,200–$1,600 per year in most states. However, if you cause an accident, you’ll pay for repairs out of pocket.
State Insurance Laws: Some states have costlier car insurance than others. States like Florida, Michigan, New York, Louisiana, and Nevada continue to have some of the highest car insurance premiums in the country, especially for Tesla models, while Idaho and Ohio have some of the cheapest. Depending on your state, you could pay anywhere from $1,500 to $5,500 per year to insure a Tesla.
Driving History: Insurers use your driving history to calculate rates. If you have speeding tickets, at-fault accidents, DUIs, and other incidents on your driving history, then you’ll pay more for car insurance than someone with a clean record. A single at-fault accident can still raise Tesla insurance premiums significantly, but the increase varies by state and insurer. It’s not uncommon to see 25%–60% higher rates after an at-fault accident.
Age and Gender: Insurers use age and gender to calculate insurance premiums. Insurance companies still use age and gender when allowed by state law, but the differences vary widely. Younger drivers — especially under 25 — continue to pay the highest premiums regardless of gender. Depending on your age and gender, you could pay significantly more or less for Tesla car insurance.
ZIP Code: Does your ZIP code have high rates of accidents or vehicle theft? Do you park your car in a locked garage at night or on the street? Depending on where you park your Tesla, you could pay higher or lower rates for car insurance. Insurers use ZIP codes — and sometimes even more precise geographic data — to determine risk, including accident density, repair availability, and theft rates.
In addition to these factors, Tesla insurance costs can also be influenced by how close you are to a Tesla-certified repair shop and the availability of specialized parts in your region. EVs may require unique towing procedures and equipment, which can add to claim expenses. These logistical considerations can lead to higher premiums in areas with fewer EV resources or limited repair infrastructure.
What’s the Best Insurance Company for Tesla Drivers?
You should be able to buy Tesla car insurance from most major insurance companies in the United States. Today, most insurers offer free quotes to Tesla drivers, making it easy to see how much Tesla car insurance costs with different insurers.
Insurance rates vary widely in 2025, so specific dollar amounts fluctuate. However, many Tesla drivers compare Tesla Insurance, Progressive, State Farm, GEICO, and Allstate when shopping for coverage.
Tesla Insurance is now available in multiple states. Tesla has rolled out its in-house insurance program across much of the U.S., using real-time telematics to calculate rates. Availability varies, but most Tesla drivers can now access Tesla Insurance outside of California.
Why Is Tesla Insurance More Expensive?
The average American pays around $1,450 per year for full coverage car insurance. The average Tesla driver, meanwhile, pays around triple that amount. Why is Tesla insurance more expensive?
Several factors increase the cost of Tesla insurance, including:
Expensive Repair Costs: Tesla vehicles have more high-end, proprietary technology inside than ordinary vehicles. If these parts break, they’re expensive to repair. It costs much more to repair a Tesla than it does to repair a typical gas-powered vehicle. Battery repairs can still be expensive, but today one of the biggest cost drivers is advanced sensor and camera calibration, which significantly increases repair costs after even minor collisions.
Higher Values: Teslas are more expensive than other vehicles. With retail costs ranging from $30,000 to $120,000, Teslas are more expensive to insure because they’re worth more than a typical vehicle.
Unibody Construction: While other cars use panels, Tesla continues using large castings and large body panels, which can make certain repairs more expensive, even though newer models are designed to simplify some repairs. Tesla vehicles tend to have large aluminum panels for better stability and safety. This comes at a cost: if one part of the panel is damaged, then the entire panel may need to be replaced. This can increase the cost of a small claim (like a scratch, ding, or dent) significantly. Insurance companies raise premiums accordingly.
Another major contributor to higher premiums today is the cost of recalibrating Tesla’s advanced driver-assistance cameras and sensors after a collision. Even minor accidents can require specialized diagnostics and alignment procedures, raising repair bills. Some regions also have limited Tesla-certified repair facilities, which can increase costs and repair times. As a result, insurers often price Tesla policies higher to account for these additional risks.
How Does Tesla Insurance Work?
Tesla is the only major car insurance company in the United States that also offers its own in-house car insurance. Today, many Tesla drivers buy insurance through Tesla Insurance.
Tesla Insurance is now offered in multiple states across the country, not just California. In most of these states, Tesla uses a real-time Safety Score to calculate premiums, adjusting prices based on driving behavior such as hard braking, following distance, and aggressive turning. This usage-based model can significantly reduce costs for safe drivers while increasing rates for those with riskier daily habits.
According to Tesla, drivers can save up to 30% by buying insurance directly through Tesla Insurance. Plus, Tesla Insurance offers comprehensive coverage and claims management.
How does Tesla offer lower rates than competing insurers? Tesla knows its vehicles better than anyone. They know the unique risk factors for each vehicle. They know how much it costs to repair their vehicles. In many states, Tesla uses a real-time Safety Score, based on driving behavior, to calculate monthly premiums.
By specializing in insuring one specific type of vehicle, Tesla can lower costs and pass big savings onto customers.
Additionally, Tesla offers special coverage options we don’t see with other insurers, including:
- Autonomous vehicle liability coverage, which protects you against property damage and bodily injury liability when your vehicle is in autonomous driving mode
- Cyber identity fraud expense, which covers you against digital identity fraud up to $15,000 per incident and $30,000 per insurance period
- Wall charger coverage, which covers your standard electrical power charger if it’s lost, damaged, or stolen
- Electronic key replacement, which covers the loss of your electronic Tesla car keys up to $500 for two incidents in each insurance period
- Loan and lease gap coverage, which covers the gap between the money owing on your lease or loan and the money you receive in a total loss insurance claim
Tesla Insurance is now available in multiple states, with real-time driving behavior used in most of those states to calculate premiums.
Insurance rates for Tesla vehicles continue to evolve as more data becomes available on EV repairs and accident patterns. Because of this, it’s increasingly important for Tesla owners to compare both Tesla Insurance and traditional insurers, as each may price risk differently. Updated vehicle designs, parts costs, and regional repair capacity all contribute to wide variations in pricing from one driver to the next.
Final Word on the Cost to Insure a Tesla
Teslas tend to be more expensive to insure than other vehicles. Today, the average Tesla costs between $2,500 and $4,500 per year to insure, depending on model, driving behavior, state, and insurer.
However, the cost of car insurance varies widely depending on personal factors and your Tesla model. Someone who drives a Model Y, for example, will pay less for car insurance than someone driving a Model X.
Shop around and compare Tesla car insurance quotes today to ensure you’re getting the best possible coverage.
