The Best and Cheapest Tesla Car Insurance

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Are you currently shopping for the best and cheapest Tesla car insurance? Tesla owners looking to insure their electric vehicles face a unique situation. On one hand, Teslas are expensive vehicles that cost more to insure than the average car. On the other hand, their electric powertrains and advanced safety features can sometimes result in lower insurance rates. So how do you get solid Tesla coverage at the cheapest rates? Here’s a comprehensive look at the top options.

Cheapest Tesla Car Insurance

How Tesla Impacts Your Car Insurance Rates 

In general, insuring a Tesla costs more than insuring a comparable gas-powered vehicle. According to online quotes, insuring a base Model 3 can cost $600 to $1,000 more per year than insuring a BMW 3 Series or Audi A4. Several factors contribute to the increased cost:

  • Teslas are expensive vehicles. The Model 3 has a base price of around $47,000, while the Model S and Model X can cost over $100,000. More expensive cars typically cost more to insure.
  • Repairing a Tesla is expensive due to the sophisticated technology and use of aluminum. Replacing a Model S/X battery pack alone can cost up to $20,000. Higher repair costs mean higher premiums.
  • Teslas require specialized tools and training to repair. Many body shops are still not equipped to properly fix Teslas after accidents. This reduced competition results in higher labor rates and parts costs.

Teslas do have some features that can decrease insurance costs:

  1. Advanced safety features – All Tesla models come standard with sophisticated active safety techs like automatic emergency braking and lane-keeping assist. This can qualify them for insurance discounts.
  2. Low risk of theft – Electric vehicles take time to charge and are hard to quickly sell. This makes them less appealing targets for car thieves.
  3. Potential for lower mileage – With more range than most EVs, Teslas can better serve as primary vehicles that are driven fewer annual miles. Lower mileage usually means lower insurance rates.

Tesla’s direct repair program can also reduce costs by guaranteeing that repaired Teslas meet factory specifications using authorized parts and shops. However, some insurers don’t participate in this program yet. Overall, insuring a Tesla costs more than the average vehicle, but remains very doable.

Other Cost Savings for Tesla Owners

While Tesla car insurance is pricier, owning a Tesla does provide some other financial benefits that help offset the higher premiums:

  • No gas expenses – Teslas run on electricity rather than gasoline. Even charging on premium networks, fueling a Tesla typically costs just a quarter as much per mile as fueling a gas car.
  • Lower maintenance costs – Electric motors have far fewer moving parts and require no oil changes. Brake pad replacements are also rare due to regenerative braking.
  • Tax credits and incentives – Although reduced this year, federal EV tax credits of up to $7,500 are still available for Tesla buyers. Some states also offer additional rebates.
  • HOV lane access – Tesla drivers can utilize HOV lanes in certain states even without passengers. This saves time and reduces stress for solo commuters.
  • Resale value – Teslas maintain residual value exceptionally well compared to gas cars. The Model 3 and Model Y in particular have the highest resale values in their vehicle classes.

The Best and Cheapest Tesla Car Insurance Providers

Most major insurers and even some Tesla-specialty insurers offer coverage for Teslas. But rates can vary widely, so it pays to compare quotes. Here are some top insurers to consider:

State Farm

As the largest auto insurer in the U.S., State Farm offers very competitive rates in most states. They have partnerships with repair shops capable of properly fixing Teslas, and some State Farm agents have extensive experience insuring Teslas. State Farm offers standard discounts for safe driving and bundling policies.


Known for low rates and easy online/mobile claims service, Geico is another huge national insurer that’s worth comparing. Tesla owners report mixed experiences though, as some have had claims improperly handled at non-certified shops. But with affordable premiums and repair guarantee add-ons, Geico remains a popular choice.


Progressive advertises heavily and offers user-friendly online quotes and policy management. They were one of the first insurers to offer special add-on coverage for EVs and hybrids. Progressive offers typical safe driver discounts, and Tesla owners can utilize their robust network of auto body shops.


Allstate features affordable premiums and quality customer service. They offer the basics like multi-policy, safe driving, and new vehicle discounts. Allstate has recently boosted its auto technology capabilities and added networks of EV-certified repair shops across the U.S.


Farmers Insurance utilizes an extensive network of knowledgeable local agents. They provide standard discounts, plus some geared towards EV owners. Farmers recently launched a program supporting EV claims through certified repair centers with properly trained technicians and parts.

Liberty Mutual

Tesla owners can benefit from Liberty Mutual’s accident forgiveness coverage and new vehicle replacement. Liberty Mutual offers enhanced total loss replacement for EVs and hybrids. Their online quote process is fast and simple. But customer satisfaction ratings are mixed.


Travelers is best known for excellent customer service and competitive rates. Their programs tailored for hybrid/EV owners include new car replacements, guaranteed repairs, and specialized expertise. Travelers Insurance also offers discounts for smart features like advanced safety tech.


Owned by Allstate, Esurance provides affordable Tesla car insurance policies online. Customers report efficient claims handling, though lower premiums sometimes mean squeezed repair costs. Still, Esurance policies come with standard discount opportunities to lower your rate.

The Tesla-Focused Insurers

A few insurers cater specifically to Tesla vehicles. They promote specialized expertise and programs tailored for Teslas. However, they tend to be newer providers with lower financial ratings.

Tesla Insurance

Tesla now offers their own proprietary car insurance in some states. It provides basic liability and collision coverage, and rates are supposed to be adjusted based on real-time driving data. Tesla repairs are guaranteed to meet factory standards at authorized shops. But it’s not yet available nationwide.


Clearcover focuses on simple, low-cost policies sold directly online. Plans are basic but affordably priced. Clearcover offers accident forgiveness, new car replacement, and an e-surance card. However. minimal plan options and lack of bundling opportunities make it less appealing for some Tesla owners.


Part of Admiral Insurance, Elephant Auto caters to EV and hybrid owners. They promote a totally digital claims process. Elephant offers expected discounts for safety features and claims-free drivers. But again, fewer discounts and minimal plan choices limit its value for many drivers.

How to Get the Cheapest Tesla Car Insurance

The key to lowering insurance costs on a Tesla or any vehicle is to shop around and compare quotes from multiple insurers. Prices can vary quite a bit between companies. It also pays off to leverage any discounts you qualify for. Here are some top ways Tesla owners can save:

  1. Ask about discounts for safety features and autopilot – Some insurers offer breaks for advanced tech standards on Teslas.
  2. Take advantage of multi-policy discounts – Bundle your Tesla with renters/homeowners and other auto policies from the same provider.
  3. Maintain a clean driving record – Avoid accidents, violations, and claims to qualify as a safe driver.
  4. Reduce mileage – Drive fewer annual miles if possible, or ask about low mileage discounts.
  5. Raise your deductible – Opting for a higher collision and comprehensive deductible cuts premiums substantially.
  6. Pay premiums upfront – Pay for 6 or 12 months of coverage at once rather than monthly to lower overall costs.
  7. Improve your credit – Insurers favor good credit scores and offer significant discounts to drivers with excellent credit.
  8. Consider usage-based coverage – Some insurers adjust premiums based on actual driving data showing safe habits.

Which Tesla Model Is The Cheapest to Insure?

Insurance costs vary across Tesla’s lineup, mainly depending on the vehicle price and repair costs. Here’s how the models compare:

  • Model 3: The most affordable Tesla, the Model 3 has the cheapest Tesla car insurance costs. Still, it’s more expensive to insure than non-luxury EVs.
  • Model Y: Slightly pricier than the Model 3, the Model Y crossover SUV also costs a bit more to insure. It ranges from small SUV to midsize SUV rates.
  • Model S: From $80,000-$120,000+, Model S premium sedan rates are considerably higher. Comprehensive claims are also more expensive due to the pricier aluminum body.
  • Model X: As Tesla’s largest and most expensive vehicle, the Model X has the highest insurance rates. Its falcon-wing doors can also increase body shop costs.

Is a Tesla More or Less Expensive to Insure Overall?

There are good arguments on both sides of this debate.

In the “more expensive” camp:

  • Newer technology is more expensive to repair/replace 
  • Higher repair shop labor rates due to special training and tools
  • Limited certified shops mean less competition and potentially inflated costs
  • Tesla models are luxury vehicles with higher starting price points

However, the “less expensive” side notes:

  • Advanced safety features prevent certain types of claims
  • Lower risk of theft and vandalism 
  • Potential for lower mileage and overall wear-and-tear
  • Insurance discounts specifically for EV safety technologies
  • Direct repair programs control costs with certified shops and parts

The reality is that insuring a Tesla ends up costing most owners $500 to $1,500 more per year compared to an equivalent gas-powered luxury vehicle. But those with spotless driving records and high deductibles can potentially land rates on par with non-luxury vehicles. The insurance cost difference has narrowed in recent years as insurers adapt to EVs.

The Bottom Line on Tesla Auto Insurance

In conclusion, insuring a Tesla does cost more than the average vehicle, but it’s not exorbitant. With the right insurance provider, discounts, and deductibles, a Tesla can potentially be insured for an acceptable rate comparable to a top-trim gas car. 

For many Tesla owners, the higher insurance costs are worth it for the benefits of driving a Tesla. It’s always smart to compare Tesla auto insurance quotes from multiple insurers before purchasing coverage. There are good deals to be had on Tesla insurance if you put in the effort. To compare the cheapest Tesla car insurance quotes where you live, enter your zip code and fill out a quick online application. Save now with direct Tesla insurance rates.