Tesla drivers might save on gas with their electric charging, but they typically face higher insurance costs. These drivers tend to pay more than those of gas-powered cars, and even more than drivers of other electric vehicles.
While the average driver nationally pays about $181 per month for car insurance, the average Tesla Model Y driver pays $282 per month for coverage and the typical Model X driver pays $377 per month, according to the insurance comparison site The Zebra.
The steep costs are due to Tesla’s high repair costs. In fact, the vehicles are more likely to be considered a total loss after damage than other cars, including other electric cars.
However, there are ways to save. Shopping around can help you find the best deal for your unique situation and vehicle. To help you get started, CNBC Select combed through dozens of auto insurers and based our analysis on cost, customer service, and other factors. (See our methodology for more on how we chose the best car insurance for Teslas.)
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The best car insurance for Teslas
Best for affordability: Progressive
Standout benefits: Progressive has previously topped our list of the best car insurance for high-risk drivers, so it could also be a good fit for Tesla drivers with an accident or ticket on their record.
Progressive Auto Insurance
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Policy highlights
Progressive offers an array of riders, including rideshare insurance and a Deductible Savings Bank that deducts $50 each policy period you go without a claim. It also offers mechanical breakdown insurance, which covers unexpected major systems failures.
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Accident forgiveness
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Availability
Progressive auto insurance is available nationwide
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Best for occasional drivers: Lemonade
Standout benefits: If you rent your home, Lemonade’s renters insurance has been one of our top picks for its easy-to-use app and quick claims. Bundling your auto insurance policy could help you save on both policies.
Lemonade Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Lemonade offers coverage for a variety of scenarios, including: car crashes, highway stalls, damage from fire, vandalism and weather, damaged glass and windshield, if you’re sued for liability and if your car gets stolen
Best for good drivers: Nationwide
Standout benefits: Homeowners can also bundle their home and auto insurance to save an average of over $1,000 per year, according to Nationwide.
Nationwide Auto Insurance
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Policy highlights
Nationwide offers On Your Side® Review, a free annual evaluation to ensure you’re fully protected and taking advantage of applicable discounts.
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Availability
Nationwide car insurance is available in all U.S. states except Alaska, Hawaii, Louisiana and Massachusetts
Pros
- Available in 46 states and Washington, D.C.
- Lowest average premiums for full coverage
- Quotes available online
Cons
- High average premium for minimum coverage
- Lower than average scores from J.D. Power’s customer satisfaction survey
Best for families: American Family
Who’s this for? If you have young adult drivers, American Family offers several ways for them to save, including discounts for keeping good grades and for volunteering in your community.
Standout benefits: Families with multiple cars could save even more with the brand’s multi-car discount.
American Family Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
American Family offers affordable car insurance with more than a dozen discounts to further lower your premium. While its not available nationwide, American Family offers quotes online or through an agent, depending on your preference.
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App available
Pros
- Low NAIC complaint index
- Offers gap coverage
- More than 15 total discounts available
- Ability to bundle home and auto insurance for a discount up to 23%
Cons
- Only available in 19 states
- Low customer review BBB rating
- Slightly higher prices than some car insurance competitors
How much is car insurance for a Tesla
And, not all models are the same — some cost significantly more than others. Here are the five common Tesla models and their average annual insurance costs, according to data from The Zebra.
- Tesla Model 3: $3,153
- Tesla Model S: $4,032
- Tesla Model X: $4,529
- Tesla Model Y: $3,391
- Tesla Cybertruck: $4,156
How to save on car insurance for a Tesla
If you own a Tesla, there are steps you can take to bring down your insurance costs. Here are our top tips to save:
- Bundle your home and auto insurance: Whether you own or rent your home, you could bundle your coverage and save, sometimes to the tune of 20% or more.
- Increase your deductible: Raising your deductible typically lowers your premium — increasing your deductible from $250 to $500 could help you save between 15% and 30% on your car insurance premium, according to Insurance Information Institute data.
- Boost your credit score: Those with poor credit pay significantly more for car insurance than those who have good credit. And credit scores can be considered when setting auto insurance rates in most U.S. states. To start raising your score, make sure you’re paying your bills in full and on time, and consider checking your credit report for errors.
- Comparison shop: Not all car insurance companies will offer you the same price for similar coverage. Getting quotes from several insurers could help you find the best price. And, using an AI tool like Jerry or Insurify to shop for car insurance could make the process quick and easy.
Tesla car insurance FAQs
How expensive is car insurance on a Tesla?
Tesla car insurance costs vary by model. The cheapest to insure is the Model 3, at about $3,153 per year. The most expensive is the Model X, which costs about $4,529 per year to insure.
Does Tesla still offer car insurance?
Tesla does offer its own car insurance, and the brand states that it uses driving information to set rates. However, it has a high volume of complaints with the National Association of Insurance Commissioners, which indicates issues with customer service and claims handling. That said, getting insurance from a third-party insurer could be a better option for covering your Tesla.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of auto insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best car insurance for Teslas.
Our methodology
To determine which auto insurance companies are best for Teslas, CNBC Select analyzed over a dozen U.S. auto insurance companies, focusing on the following features:
- EV discount: We reviewed the availability of discounts for EV drivers.
- Cost: Using premium data from The Zebra, we looked for companies with the lowest rates for popular electric cars.
- Availability: Companies that were available in more states were given additional weight.
- Customer satisfaction: We reviewed companies’ ranking on J.D. Power customer satisfaction surveys and the volume of complaints reported to the National Association of Insurance Commissioners. We also considered a carrier’s Better Business Bureau grade.
- Online access: We gave priority to brands that offer quotes online.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, the companies with the best car insurance for Teslas are:
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.