Best Car Insurance Company for Teslas (2023)

If you drive a Tesla, you need car insurance. While shopping for auto insurance doesn’t have to be difficult, some people find the process overwhelming. In addition, Tesla owners may be more anxious about the process because of the average cost of Tesla auto insurance coverage.

The average cost of Tesla auto insurance is around $3,947 annually or $329 each month. The average cost of car insurance overall in the U.S. is around $2,148 annually or $179 per month. Because Tesla rates are much higher than rates for most other vehicles, Tesla owners must compare quotes to find the cheapest option available.

Tesla owners should purchase full coverage on their vehicles to ensure they are properly protected in case of an accident or other unexpected event. Without full coverage, you may have to pay for repairs to your vehicle out of pocket if you ever cause an accident or if someone or something damages your Tesla.

Remember to compare quotes for Tesla insurance from many different companies near you. Because the average insurance cost for a Tesla is so expensive, you need to consider several options to find the best Tesla car insurance quotes in your area. Read on to learn more about finding the best car insurance company for Teslas.

What type of Tesla car insurance do I need?

If you drive a Tesla, you need an insurance policy to protect your vehicle. Because the average cost of a Tesla is anywhere from $42,000 to $120,000, Tesla drivers may be looking for various different car insurance coverage options.

Each state in the U.S. has specific car insurance requirements. In most states, drivers must carry at least liability insurance before they can drive legally. To meet your state’s minimum coverage requirements, you need the following types of liability insurance: 

• Property damage liability: Property damage liability insurance covers you if you cause an accident and damage someone’s vehicle or other personal property. 
• Bodily injury liability: Bodily injury liability car insurance companies cover you if you cause an accident and one or more people are injured. 

Your liability requirements depend on where you live. For example, some states require higher levels of property damage and bodily injury liability, while others have lower levels. In addition to liability, your state may also require one or more of the following coverages:

• Personal injury protection (PIP): Personal injury protection car insurance companies help with medical bills, lost wages, and funeral costs associated with a covered accident.
• Medical payments (MedPay): Medical payment car insurance companies help with medical bills like visits to the doctor and hospital stays. 
• Uninsured/underinsured motorist coverage: If another driver causes an accident but does not carry proper insurance, uninsured/underinsured motorist coverage car insurance companies pay for the damage someone else caused to your vehicle.

If your state does not require PIP, MedPay, or uninsured/underinsured motorist coverage, you may still want to purchase these insurance types for additional protection.

What is full coverage car insurance for a Tesla?

If you drive a Tesla, you should have full coverage for your vehicle. Full coverage car insurance protects your vehicle if you cause an accident or someone or something damages it. In addition to liability insurance, a full coverage policy features:

• Collision insurance: Collision car insurance companies pay for damage to your vehicle if you cause an accident. Collision will cover your Tesla up to its actual cash value (ACV).
• Comprehensive insurance: Comprehensive car insurance pays if theft, vandalism, wild animals, or inclement weather damage your Tesla. 

Because Teslas are so expensive, you do not want to be on the hook for paying for repairs for your vehicle. This is why full coverage is essential. Additionally, if you drive a Tesla with a loan or a lease on the vehicle, your contract likely requires that you purchase a full coverage policy. 

Should I get add-on coverage for my Tesla?

Some Tesla owners may want additional coverage based on their unique lifestyles and needs. Add-on coverages make your monthly or annual Tesla auto insurance rates more expensive, but they provide additional protection.

Some of the most common add-on coverage options for Tesla owners include:

• Emergency roadside assistance: Auto insurance with roadside assistance helps if you have a flat tire, need lockout services, run out of fuel, or need a tow. 
• Gap insurance: If your Tesla is damaged, and you still have a loan or lease on the vehicle, gap insurance pays the difference between what you owe on the vehicle and its actual cash value.
• New car replacement: If your new Tesla is totaled, new car replacement pays for the vehicle to be replaced with the same make and model. 
• Rideshare coverage: Drivers for companies like Uber and Lyft often need additional rideshare or food delivery car insurance to ensure they’re protected. 
• Rental car reimbursement: Your insurance company will pay you back for any money spent on rental cars while your vehicle is in the shop after a covered accident.

You can price add-on costs with different companies to learn how much you would pay for the additional protection. If you have a new Tesla, gap insurance or new car replacement coverage may be necessary. Additionally, if you work for a company like Uber or Lyft, rideshare protection could be extremely helpful.

How much is Tesla insurance? 

Purchasing insurance for a new Tesla will be more expensive than if you’re insuring a used Tesla. Still, rates for Tesla auto insurance are much higher than the average cost of auto insurance in the U.S. Tesla car insurance costs around $3,947 annually or $329 each month on average. Of course, your Tesla’s model and year will impact how much you pay for coverage. 

If you drive a Tesla or another electric vehicle, your insurance rates will be higher than average. Electric vehicle insurance typically costs more than auto insurance for a gas vehicle because electric vehicles are often more expensive. 

How much is car insurance for a Tesla Model 3?

If you drive a Tesla Model 3, you can expect to pay around $1,712 annually or $143 each month for Tesla Model 3 insurance. Still, rates will vary based on:

• Age
• Gender
• Marital status
• ZIP code
• Coverage type(s)
• Driving history
• Credit score

If you’re in your 30s or 40s and have good credit, you’ll probably pay less for your Tesla Model 3 insurance than a teen or young adult driver or someone with poor credit. 

Does Tesla offer insurance?

If you own a Tesla, you may be able to purchase Tesla auto insurance in your state. The company offers full coverage and add-on coverage options to policyholders, but coverage with Tesla is not available everywhere. Tesla car insurance is an option for you if you live in: 

• Arizona
• California
• Colorado
• Illinois
• Maryland
• Minnesota
• Nevada
• Ohio
• Oregon
• Texas
• Utah
• Virginia

Tesla offers discount coverage options if you use the company’s usage-based car insurance option. With a usage-based coverage option, Tesla tracks your driving behavior to assess behaviors like stopping and starting, hard braking, distracted driving, and speeding.

What’s the best car insurance company for a Tesla?

If you’re searching for Tesla car insurance, you may wonder which company offers the best rates and coverage options for Tesla owners. Finding the best car insurance company for your Tesla requires comparing quotes from many companies in your area.

When you compare coverage options and quotes, you’ll learn which companies offer the full coverage policy you want for your Tesla at a price you can afford.

Can I get discounts on Tesla car insurance? 

If you drive a Tesla, you may qualify for car insurance discounts on your coverage. Some of the most common discounts for Tesla drivers include:

• Defensive driver
• New car
• Safety features
• Electric vehicle
• Loyalty
• Multi-policy
• Multi-vehicle
• Paid-in-full

If you believe you qualify for one or more discounts, you can speak with a representative from any company you’re considering to learn how much you could save on your monthly or annual Tesla insurance rates. Discounts may help you save up to 25% on your car insurance premium.

How can I choose the right car insurance company for my Tesla?

If you compare quotes and coverage options from different companies, you’ll find the best insurance for your Tesla. You can also review each company’s financial strength, claims-handling practices, and customer service departments to learn more.

Read customer reviews to learn how past and present customers feel about different companies, and look up each company’s financial strength rating before you make a final decision. Doing so can help you feel comfortable with your auto insurance choice in the future. 

Tesla Car Insurance: The Bottom Line

If you drive a Tesla, you need proper car insurance. Tesla owners should pursue full coverage for their vehicles so they don’t have to pay out of pocket for repairs if their Tesla is damaged. 

Insurance is available through Tesla in certain states. If you don’t live in a state offering Tesla auto insurance, you must shop for coverage with other companies. Searching for coverage and quotes with different companies will help you learn what you’ll pay for Tesla car insurance in your area.