However, even between different Tesla models, prices can differ significantly. Below are the average annual insurance rates by Tesla model, ranked from cheapest to most expensive:
- Model Y ($2,040).
- Model 3 ($2,115).
- Model S ($3,008).
- Model X ($3,044).
These rates are for full coverage insurance for good drivers with good credit. Full coverage car insurance is a great choice especially choosing car insurances.
They are merely averages, though. Your rate will vary based on variables like location and insurance company. NerdWallet compared full coverage insurance rates for the least expensive Tesla, the Model 3, from the country’s top auto insurers in each state to get a better idea of what to anticipate. Here’s what we found. Continue reading.
How Tesla Insurance Works?
Tesla uses real-time driving behavior to determine your car insurance rate for most vehicles. All states that sell Tesla Insurance, with the exception of California, offer it for the Model S, 3, X, and Y. Tesla Insurance is still available to residents of California, but rates will no longer be determined by your driving style.
Tesla is able to gather information about your driving habits directly from your car, without the aid of an additional app or plug-in gadget.
Driving behavior tracked includes:
- amount of forward collision warnings.
- Hard braking.
- turning quickly in sharp angles.
- how far away you are from the vehicle in front of you.
- Driver attention levels.
A higher score indicates safer driving, and Tesla calculates your monthly Safety Score for you based on this data, which ranges from 0 to 100.
The score assigned to new policyholders is 90. Tesla uses a Safety Score of roughly 86 unless you’re insuring a non-Tesla vehicle or your car lacks the capability to report data.
The company does not consider your age, gender, marital status, or credit history, in contrast to conventional insurers. It also doesn’t use your accident or traffic violation history as a factor to determine your initial or future auto insurance rate. Check for What Age Does Car Insurance Go Down?
Instead, Tesla uses the following factors to determine a rate:
- driving style determined by the Safety Score.
- Miles driven.
- Location.
- Make and model of the vehicle.
- Coverage purchased.
- number of insured vehicles
Is Tesla Insurance Worth It?
Tesla Insurance is worth a look if you live in one of the states where policies are sold. In addition to standard insurance policies (like liability, comprehensive, and collision), the company also provides coverage for electronic devices, wall chargers, and identity fraud. Tesla also offers gap insurance, rental reimbursement coverage and roadside assistance. You may be interested: How Much Does General Liability Insurance Cost?
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In its initial filings, Tesla Insurance also included collision and liability car insurance discounts for the use of autonomous driving features, ranging from 5% to 30% depending on the level of autonomy in use. Discounts would also be available to families who own several Tesla vehicles.
Still, this doesn’t automatically mean Tesla will have the cheapest rate for you. To find the most affordable coverage, compare auto insurance providers.
Questioning how long does GAP insurance last? Maybe you’re curious about your GAP Coverage’s cancellation or refund options. We’ll address all of your GAP Insurance questions in the paragraphs that follow. Read Now!
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Why Are Teslas So Expensive to Insure?
Because Tesla vehicles are expensive to buy and maintain, they are also expensive to insure. Teslas have especially high collision coverage costs due to their high repair and maintenance costs, which are more expensive than other luxury vehicles or EVs.
- Only Tesla-approved body shops can perform repairs on Tesla vehicles. Costs are greatly increased by the necessary equipment and training. Why is Car Insurance So Expensive?
- Due to their more expensive equipment and technology, electric cars are more expensive to repair and insure.
- Compared to other EVs, Teslas have a longer battery life, so they typically travel further. Increased crash risks come with longer commutes. Check for How to Get Car Insurance Before Buying a Car?
- The Model S aluminum frame is more expensive and difficult to repair than a steel frame.
Due to this, even a minor fender bender on a Tesla can easily cost several thousand dollars to repair. Additionally, the price per collision might keep increasing as the cars incorporate more specialized components and technology.
Despite the fact that autopilot technology in Tesla vehicles aims to reduce collisions, prices for a Tesla also take into account the cost of replacing all that expensive technology in the event of a collision. Read more: Average Cost of Car Insurance
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Is Tesla’s Own Insurance Better Than Traditional Car Insurance?
Tesla provides direct auto insurance, which is currently only accessible in California. The company states that, in some cases, its rate is 20%–30% lower than other car insurance companies.
MoneyGeek advises California residents to request a Tesla insurance quote to compare their sample premium to what other providers are charging. However, you might want to avoid Tesla if you place a higher value on customer service than price. The National Association of Insurance Commissioners (NAIC) reports that the complaint ratio for State National, which handles Tesla’s insurance, is 2.2 times higher than the national average.
Along with looking to extend its coverage offerings outside of California, Tesla is also attempting to reduce costs for responsible drivers by monitoring their behavior and offering incentives for it. This approach — often referred to as pay-per-mile or behavior-based insurance — is growing, even among traditional providers.
You may want to know: How Long Does It Take to Get Car Insurance?
Frequently Asked Questions
How Much is a Tesla?
Depending on the model and trim you select, a new Tesla can cost anywhere from $47,000 to $139,000 in price. Adding self-driving capability, choosing a paint color besides white and other customizations can increase the sticker price. Explore the answer:How Much is Car Insurance for a 16-year-old, Average Cost of Car Insurance for 18-Year-Olds
How Much Does Insurance Cost for a Tesla Model 3?
A Model 3’s full coverage insurance policy typically costs $3,386 a year. It costs more to insure ($3,057) than the Model Y, but less than a Model S or Model X.
What Insurance Coverage Does Tesla Offer?
In addition to liability, collision, and comprehensive insurance, Tesla also provides protection against identity fraud, wall chargers, and electronic key replacement. Roadside assistance, gap insurance, and reimbursement for rental cars are also offered.
Is Tesla’s Insurance Program Cheaper Than Other Insurers?
In Texas, Tesla’s internal insurance program is the most cost-effective choice compared to other insurers. However, only nine states currently offer it.
Summary: How Much Does Tesla Insurance Cost?
Different Tesla models have varying insurance costs, so it’s important to comparison shop for the best deals. A Model Y costs an average of $2,878 per year in insurance, making it the most expensive model. The Model 3, which costs $1,712, is the most affordable.
Keep in mind that premiums from all model years were used to calculate these average rates. Insurance is typically less expensive for older models of the S, X, and 3 (which debuted in 2016) than for newer models, like the Model Y (which debuted in 2020).
If you have any questions, please leave a comment. KV Auto tries to give you the best car industry information. Thank you for reading.
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