Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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Written by Marissa Hayes
Insurance Writer & Expert Marissa Hayes

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Dec 29, 2021

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The Short of It

  • Auto insurance on Teslas cost above average to insure
  • You can expect to pay an average of $2,000 to $3,000 a year for insurance
  • Tesla Insurance may be a way to save, depending on your state

At many car insurance companies that insure Teslas, you’ll have to pay an above-average amount to cover any risk. While it may cost more, you should still get full coverage on your Tesla to protect such a valuable vehicle from any damage or theft.

If you’re looking for the car insurance companies that insure Teslas, enter your ZIP code into our free quote tool to see what you could pay today.

What auto insurance companies will insure a Tesla?

Tesla is one of the most popular cars of the modern era, offering innovative features and an eco-friendly option to standard combustion engine vehicles.

Tesla’s performance in 2021 has only furthered this trend, with over 200,000 cars bought by customers in the second quarter, according to a Tesla press release. As more Teslas are out on the road, more insurance companies will offer coverage.

Of course, Tesla offers its coverage in Texas and California, promising competitive rates. However, until Tesla Insurance can expand, it’s not an option for most clients.

So for those unable or uninterested in Tesla Insurance, some of the best insurance companies for you include:

  • USAA
  • GEICO
  • State Farm
  • Amica
  • Progressive

With the still-growing popularity of the Tesla brand of vehicles, you’re likely to be able to get coverage at any number of insurers. However, you should still be aware that you will likely have to pay more than standard auto insurance at most companies.

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What’s the best insurance type for Tesla?

How much coverage you get on your Tesla will largely depend on your concerns and the rates you can afford. There are multiple types of auto insurance coverage on the market, including:

  • Liability – Required in most states, liability coverage pays for medical bills and legal fees when someone or something is damaged by your vehicle.
  • Collision – Collision insurance covers damages to your car when you collide with another vehicle in traffic.
  • Comprehensive – This covers damages to your vehicles like theft, vandalism, and extreme weather.

If you’re driving a new Tesla, you’ll likely want to ensure that you at least have comprehensive insurance. This will protect against theft or vandalism against such a popular and recognizable vehicle.

What’s the cost of Tesla insurance?

The cost of insuring your Tesla will depend on the model, as well as factors in your life. According to Nerdwallet, some of the annual prices you can expect from top insurance companies include:

  • Progressive – $1,875
  • State Farm – $1,943
  • GEICO – $2,565
  • Allstate – $3,331

As you can see, the average cost for Tesla insurance doesn’t even begin until nearly $2,000 for the year, which comes out to around $166 a month.

What is the Tesla insurance cost for a Model 3? Again, using the same source, the insurance cost for a Tesla Model 3 costs an average of $2,215 per year, or around $184 a month. This would make the best insurance for a Tesla Model 3 Progressive, as they offer the most affordable rates above.

What determines my Tesla’s insurance rates?

When you apply for an auto insurance policy, you’ll be subject to a process called underwriting. During underwriting, your insurance company will estimate the likelihood it will have to pay out on a claim during your policy.

The greater the level of risk you pose to having an accident or other claim, the more your insurance will charge you for your policy. Some of the factors that can negatively affect your rates include:

  • Too many tickets or a DUI
  • Multiple recent claims
  • Bad credit history
  • Frequently stolen vehicle
  • Neighborhood with high levels of vandalism

Depending on how and where you use your car, you can expect to pay more for your auto insurance rates. Especially since Teslas are a commonly known vehicle, this is one of the reasons that rates on these cars are higher than others.

How can I pay less for Tesla insurance?

If you want to pay less for your auto insurance on a Tesla, there are some options available to you. As with any insurance policy, you should consider ways to lower the auto insurance company’s risk.

Lowering your risk can include things like:

  • Raise the deductible, so the insurer pays less
  • Improve your credit history by paying bills on time
  • Wait three to five years for significant events to be forgiven
  • Find ways to protect the vehicle via anti-theft and safety features

There are several options available to you, and you should consider discussing how you can save with an insurance agent.

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How does Tesla plan to lower auto insurance costs?

Tesla has recently begun selling auto insurance for its vehicles meant to offer competitive rates to its customers. But, unfortunately, Tesla only offers insurance in Texas and California, making it an unavailable option for many customers.

That being said, the average yearly cost for a Tesla policy is around $1,795 for its Texas car insurance. This is slightly more affordable than the other insurance companies and offers a competitive edge to insuring Teslas in those states.

If Tesla can expand its insurance branch to other states, it will serve as a good motivator for other companies to lower rates on Teslas.

Tesla Insurance: The Bottom Line

If you’ve recently purchased a Tesla, you’re going to need insurance as soon as possible. Unfortunately, with a prevalent vehicle like a Tesla, you’ll have to pay more to cover any potential damages. However, there may be options for you to save if you can lower risk or get Tesla Insurance.

Now that you know the auto insurance companies that insure Teslas enter your ZIP code into our free quote tool to see what you could pay for a policy today.