Best Car Insurance Companies for Teslas in 2022

Whether you’re looking for the best insurance for a Tesla Model or the best insurance for Tesla Model Y, there are plenty of companies that will work with you. Teslas are high-priced cars with some serious tech, which explains why Tesla insurance is so costly. However, you can save money by taking advantage of Tesla discounts, safety feature discounts, and keeping your driving record clean. The best car insurance companies for Tesla can help find the protection you need to keep your Tesla safe.

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Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Dec 13, 2021

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The Rundown

  • Tesla’s electric vehicles have a reputation for reliability, great tech, and a hefty price tag
  • Insurance for Tesla cars are higher due to of the cost of the vehicle, including its expensive parts
  • Tesla Insurance offers coverage specifically for Tesla drivers, and it claims to offer rates 30% lower than other insurers

Tesla electric cars are at the forefront of technological advances for green vehicles and have a reputation as one of the top electric cars on the market.

With the cutting-edge technology and superior reliability of a Tesla comes a heftier price tag than other electric cars. Tesla prices start at $40,000. As with all expensive cars, car insurance for a Tesla is more expensive, as well.

Even with Tesla’s high safety ratings, you’ll need to take advantage of as many opportunities as possible to find affordable Tesla insurance.

Shop around to see quotes from the best car insurance companies for Tesla. If you’re ready to see what quotes might look like for you, enter your ZIP code into our free tool.

Which Tesla models are cheapest to insure?

As with any car, the cheaper it is, the less your insurance will cost. The same is true for Teslas. The most affordable vehicle will have the least-expensive insurance. There are several models of Tesla cars, each starting at different prices.

ModelBase Price
Model 3$43,990
Model 3 Performance$57,990
Model 3 Long Range$49,990
Model X$104,990
Model X Plaid$119,990
Model S$94,990
Model S Plaid$129,990
Model Y Long Range$56,990
Model Y Performance$61,990
Roadster (2022)$200,000
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As you can guess, the least-expensive models come with the least-expensive Tesla insurance. This is another reason you should shop around for quotes — the best insurance for a Tesla Model Y might not be the best insurance for a Tesla Model 3.

However, these are just the base costs of each model. Tesla upgrades include alternative paint colors for about $1,500, a self-driving option for $10,000, and even a trailer hitch for the Model Y for $2,000.

If you decide to spruce up your Tesla with add-ons, you will most likely see your insurance rates go up, even if you have the cheapest model.

However, Tesla offers upgrades that can reduce the cost of your insurance. If your car has certain safety features and anti-theft devices, you may earn some discounts on insurance.

Which companies have the cheapest Tesla insurance?

You can find the best Tesla insurance from any number of the major insurance companies. The exact quote you get will depend on your circumstances, but you can get an idea of what insurance will cost you by looking at averages.

CompanyLow coverageHigh coverage
Allstate$4,287.09 $4,739.46
State Farm$3,793.44 $4,541.30
GEICO$2,612.92 $3,127.30
Farmers$4,651.83 $5,307.39
Travelers$2,924.52 $3,687.46
Nationwide$4,179.52 $5,046.66
Liberty Mutual$2,824.01 $3,219.54
Progressive$2,555.04 $3,061.73
USAA$2,445.05 $2,892.32
Tesla$2,768.99$3,315.08
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The price range for Tesla insurance is relatively wide, which is why it’s integral that you look at as many companies as possible to find the best for you. For example, Progressive Tesla insurance tends to be the cheapest option in general, but State Farm or Travelers might work better for you.

You should also be cautious of any insurance company that markets specifically for your car. You might think it would offer the cheapest options, but you can often find better rates elsewhere.

For example, you might think comparing Tesla Insurance vs. GEICO would see Tesla with the cheaper rates. However, GEICO tends to be a little cheaper.

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Why is Tesla insurance so high?

Simply put, Teslas are expensive cars, and expensive cars come with a higher insurance cost. Your insurance will have to pay for repair costs to your vehicle if you’re involved in an accident. Teslas are also more expensive to replace if your car is stolen or totaled.

Not only is Tesla an expensive car, but the parts to repair it are also expensive. Part of the reason insurance is so expensive is because the repair process is costly.

Another factor is your location. 25% of Tesla owners live in Los Angeles and San Francisco. Your rates tend to go up when you live in a large metropolitan area. Since a quarter of all Tesla drivers live in two of the largest cities in America, it’s reflected in the average insurance cost.

However, even with high insurance prices, a Tesla car can save you money. Considering today rising gas prices, you can save hundreds of dollars a year just by not purchasing fuel.

Tesla Repair Prices

Teslas are engineering marvels, but have expensive parts. The batteries alone cost thousands of dollars to replace.

Tesla also manufactures their cars from aluminum, which is more expensive than the traditional plastic or steel of other vehicles.

There are other factors that contribute to the higher insurance costs, but the expensive parts and all-aluminum bodies are the main reasons for the increased cost of your insurance.

Tesla recognizes this increased insurance cost and has developed a solution the company says will be cheaper than traditional insurance. They call it Tesla Insurance.

What is Tesla insurance?

Tesla Insurance is now a licensed insurance broker in California and Texas. The company claims its policies may be 30% less expensive than from other insurers.

Currently, you can buy insurance for the Model S, Model 3, Model X, and the Model Y. You’ll also be able to get insurance on highly anticipated Roadster when it is available.

According to its website, Tesla Insurance offers comprehensive coverage and claim management for Tesla owners in California and Texas. It plans to expand to other states in the future.

Most insurance companies offer at least the following:

  • Liability. Every state except New Hampshire has a minimum insurance requirement to drive legally. Liability protects the other driver when you are at fault for an accident.
  • Collision. As its name suggests, this helps pay for damage done to your car in an accident.
  • Comprehensive. This protects against all of life’s little mishaps: fallen tree branches, severe weather, animals, and vandalism.
  • Personal injury protection. While liability protects the other driver in an accident, a personal injury protection plan will help pay your medical bills.
  • Uninsured/underinsured motorist. Just because the law says you need insurance doesn’t mean everyone has it. This protection will help repair your car if someone with inadequate insurance hits your car.
  • Medical payments. A medical payments plan will help you pay medical bills.

How does Tesla Insurance work?

Tesla insurance maintains that they understand their drivers better than any other insurance company. The idea is that Tesla is focused on one specific type of car, which means Tesla really knows their customers and their needs.

They also take into account the car’s safety features much more than other insurance companies will because they understand how the technology works. The company bases its insurance rates on the safety features alone — they currently do not consider personalized driving data.

Tesla offers liability, collision, and comprehensive coverage. They have unique offerings in the form of coverage for wall chargers, identity fraud, and electronic key replacement.

Like its competitors, Tesla offers a list of discounts you might be eligible for. Discounts are available for using autonomous driving features. The more you use, the more you save — up to 30%. You can also save if your household has more than one Tesla.

What’s in the future for Tesla Insurance? The next two states Tesla is looking to expand its insurance coverage in Washington and Illinois.

How to Save Money on Your Tesla Insurance

While your Tesla is more expensive than the average car, insurance for the vehicle is treated the same. You’ll pay more monthly for insurance, but there are plenty of ways to save money.

The best thing you can do is keep your driving record clean. Even a single speeding ticket can cost your monthly bill to increase. If you avoid tickets, traffic violations, and accidents, you’ll be eligible for the best rates.

On top of keeping your record clean, you can also check to see if you’re eligible for discounts. While every company offers a unique set of discounts, here are some of the most common:

  • Paid in full. Earn this discount by paying the entire cost of your annual insurance up front.
  • Safe driver. This is for drivers that go a specific amount of time without incident (usually three to five years).
  • Multi-car. If your household has more than one vehicle, you can earn a discount for including them in the same policy.
  • Military. If you are active duty or retired military, you might be eligible for a discount.
  • Bundling. Most companies offer other insurance products like homeowners or life. You can earn a discount if you purchase multiple policies.
  • Student discounts. Most companies offer discounts for maintaining good grades, leaving your car at home, and completing safety courses.
  • Seniors. Many companies offer a discount of around 5% for people over the age of 55.
  • Vehicle discounts. Anti-theft and safety devices, and even the type of car you drive might make you eligible for more discounts.

You can also save money by keeping your credit score up, paying your bill on time, and choosing a higher deductible.

One of the best ways to save money on your insurance is to shop around for quotes. Even if you already have a policy, you might find significant annual savings by switching to another company.

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Find the Best Tesla Insurance for Your Needs

Whether you drive a sporty Tesla Model 3 or you can’t wait to get your hands on a Roadster, finding the right rates for your car insurance is crucial if you want to save money.

One benefit of owning an electric car is that you do not have to buy gas. To capitalize on gas savings, you should find the best insurance rates possible.

If you’re ready to compare the best car insurance companies for Tesla cars, enter your ZIP code into our free tool today.

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