Insurance For Tesla: What It Covers and What It Can Do For You

By | April 13, 2022

The purpose of this article is to provide all the information that Tesla owners need, so they are well informed about Insurance For Tesla, Tesla Insurance costs, Tesla Insurance States, What It Covers, etc.

It is important to acquire Tesla insurance in order to protect yourself and your car against any unfortunate events that may occur. 

There are a few unique options available to Tesla owners when it comes to getting their vehicle insured. 

However, the process of finding, choosing, and insuring your Tesla is no different from the process of insuring any other car.

Can I Get Car Insurance for My Tesla?

Yes, you can…Getting car insurance for your Tesla is no different from getting insurance for any other vehicle. 

The easiest way to do this is by comparing the rates between several insurance companies. 

A quote will be determined by the insurance company based on your driving record and experience, your coverage needs, as well as personal information such as your age, gender, and location.

Car Insurance for Teslas

A Tesla is also required to have car insurance just like any other car. 

As this is a technologically advanced vehicle, it will require a higher level of insurance coverage.

Purchasing Tesla insurance will provide you with the protection you need if you are involved in an accident with another vehicle, pedestrian, or other public or private property. 

As long as you have the appropriate type of insurance, your vehicle will also be covered if it is damaged.

 Insurance For Tesla Program

At the moment, Tesla Insurance is only available to drivers in California, but in the near future, the company will expand into other states, including Texas. 

The program was introduced in August 2019 with the goal of making Tesla a market leader in providing auto services in one place, starting with insurance. 

Using their knowledge of how their vehicles work and how drivers operate them, the firm is able to charge more reasonable insurance rates.

Generally, the pricing of their services is based on the car’s safety systems rather than personal information. 

A range of insurance packages is available under the policy including liability, collision, and comprehensive coverage, as well as specific coverage like identity theft, electronic key replacement, and wall charger coverage. 

Tesla will, therefore, make use of the information it has about the vehicle’s safety and automated driving technology to lower the cost of insurance for Tesla owners.

How Much Does Tesla Insurance Cost?

In the research we conducted, we discovered that the average cost of auto insurance for a Tesla is $4,548 a year.

However, your policy is heavily influenced by the model, trim, location, driving record, and the amount of coverage you choose.

The cost of insuring Tesla vehicles tends to be higher than many other luxury vehicles due to their high repair costs.

The average cost of Tesla Model 3 insurance

The average cost of Tesla Model 3 insurance

Insurance For Tesla

Based on our analysis, it appears that Tesla Model 3 insurance costs approximately $185 a month, or $2,215 a year. 

However, rates vary widely between insurers. 

Prices for Tesla car insurance can vary widely among the five largest companies in the U.S.

What company has the cheapest Tesla car insurance?

Progressive, one of the nation’s largest insurers, is known for offering Tesla Model 3 owners the best rates. 

Despite the fact that USAA has lower rates, it was excluded from our analysis since it is only available to military personnel, veterans, and their family members.

Be sure to compare smaller regional providers as well when looking for the best Tesla auto insurance. 

Below are large company insurance rates for Tesla Model 3


Average annual rate

1. Progressive


2. State Farm


3. Geico


4. Allstate




Tesla’s New Plans to Cut Insurance Costs for Drivers

Tesla intends to offer drivers with clean driving records or who haven’t been in an accident within the last three to five years a 20 percent to 35 percent discount on their insurance. 

Other discounts they hope to offer include:

  • Multi-policy discount
  • Loyalty discount
  • Group rate
  • Mature driver improvement course discount
  • Anti-theft device discount