- How much is Tesla insurance?
- Cheapest car insurance companies for Teslas
- Tesla car insurance costs by state
- Tesla car insurance cost by model
- Tesla car insurance cost by driver age
- Tesla car insurance trends by model
- Best car insurance for a Tesla
- The Tesla car insurance program
- Why is Tesla insurance so expensive?
- Tesla repair costs: Why is it more expensive than other EVs?
- How to lower on Tesla insurance rates
- Methodology
- Tesla car insurance: Frequently asked questions
How much is Tesla insurance?
The average cost of insuring a Tesla is higher than what you would pay to insure a typical car, with the precise cost varying depending on the year, make, and model of the Tesla.
While the average cost of car insurance is $2,305, Tesla insurance for a Model 3 averages $3,466 yearly, based on our most recent data. The Tesla model you buy affects your rates as well, with Tesla Model Y insurance costs averaging $3,529 a year, a Model X at $4,805 a year and a Model S at an average of $5,074 a year.
"Electric vehicles are often more expensive to insure due to the cost of repairs/parts/labor and availability of repair facilities," says Janet Ruiz, director of strategic communication at the Insurance Information Institute. Â
How much is Tesla insurance a month?
Based on the average annual rate of $3,466 a year, the average insurance for a Tesla Model 3 costs about $289 a month for a Model 3. Model 3 insurance costs are lower than other Tesla models.
Tesla rates vary based on location, driving history and coverage levels. They also vary by company, and you can save a lot by shopping around.
Cheapest car insurance companies for Teslas
The cheapest Tesla insurance companies are State Farm and Nationwide. Both of these insurers offer coverage for less than $3,000 annually. State Farm is cheapest for all models except the Model S, which is cheapest to insure at Nationwide.
After that, insurance costs jump substantially with other insurers. The next cheapest company – GEICO – charges more than $3,000 a year for coverage.Â
Comparing car insurance rates is one of the most effective ways to get the best deal regardless of what type of car you drive.Â
Below, you’ll find average rates for the top car insurance companies for each Tesla model and trim level.
| Company | Average annual rate |
|---|---|
| Nationwide | $2716 |
| State Farm | $2790 |
| GEICO | $3471 |
| Progressive | $3740 |
| Allstate | $4130 |
| Farmers | $5174 |
Cheapest insurance for Tesla Model 3
Cheapest insurance for Tesla Model S
Cheapest insurance for Tesla Model X
Cheapest insurance for Tesla Model Y Long Range
Cheapest insurance for Tesla Model Y Performance
Cheapest insurance for Tesla Model 3 Performance
Cheapest insurance for Tesla Model S Plaid
Cheapest insurance for Tesla Model X Plaid
| Company | Average annual rate |
|---|
Tesla car insurance costs by state
Louisiana is the most expensive state to insure a Tesla Model 3, at an average rate of $5,718 annually. Hawaii is the cheapest state to insure a Tesla Model 3, with an average rate of $2,059 annually. The map below shows the cost of insuring different Tesla models – including the Tesla Model 3.Â
Tesla Model 3 insurance cost by state
| State | Average rate | Compared to national average |
|---|---|---|
| Alaska | $3,384 | -$82 [-2%] |
| Alabama | $3,406 | -$60 [-2%] |
| Arkansas | $4,174 | $708 [20%] |
| Arizona | $3,241 | -$225 [-6%] |
| California | $4,241 | $775 [22%] |
| Colorado | $4,206 | $740 [21%] |
| Connecticut | $3,803 | $337 [10%] |
| Washington, D.C. | $3,913 | $447 [13%] |
| Delaware | $3,355 | -$111 [-3%] |
| Florida | $3,394 | -$72 [-2%] |
| Georgia | $4,087 | $621 [18%] |
| Hawaii | $2,059 | -$1407 [-41%] |
| Iowa | $3,124 | -$342 [-10%] |
| Idaho | $2,187 | -$1279 [-37%] |
| Illinois | $3,338 | -$128 [-4%] |
| Indiana | $3,125 | -$341 [-10%] |
| Kansas | $3,470 | $4 [0%] |
| Kentucky | $4,065 | $599 [17%] |
| Louisiana | $5,718 | $2252 [65%] |
| Massachusetts | $3,567 | $101 [3%] |
| Maryland | $3,547 | $81 [2%] |
| Maine | $2,641 | -$825 [-24%] |
| Michigan | $4,790 | $1324 [38%] |
| Minnesota | $3,773 | $307 [9%] |
| Missouri | $4,056 | $590 [17%] |
| Mississippi | $4,011 | $545 [16%] |
| Montana | $3,858 | $392 [11%] |
| North Carolina | $2,526 | -$940 [-27%] |
| North Dakota | $2,898 | -$568 [-16%] |
| Nebraska | $3,684 | $218 [6%] |
| New Hampshire | $2,701 | -$765 [-22%] |
| New Jersey | $3,674 | $208 [6%] |
| New Mexico | $3,418 | -$48 [-1%] |
| Nevada | $3,243 | -$223 [-6%] |
| New York | $2,324 | -$1142 [-33%] |
| Ohio | $2,447 | -$1019 [-29%] |
| Oklahoma | $3,760 | $294 [8%] |
| Oregon | $3,022 | -$444 [-13%] |
| Pennsylvania | $3,592 | $126 [4%] |
| Rhode Island | $4,336 | $870 [25%] |
| South Carolina | $3,065 | -$401 [-12%] |
| South Dakota | $4,204 | $738 [21%] |
| Tennessee | $3,882 | $416 [12%] |
| Texas | $4,705 | $1239 [36%] |
| Utah | $2,753 | -$713 [-21%] |
| Virginia | $2,423 | -$1043 [-30%] |
| Vermont | $2,888 | -$578 [-17%] |
| Washington | $3,152 | -$314 [-9%] |
| Wisconsin | $2,781 | -$685 [-20%] |
| West Virginia | $3,069 | -$397 [-11%] |
| Wyoming | $3,541 | $75 [2%] |
Tesla Model S insurance cost by state
| State | Average rate | Compared to national average |
|---|---|---|
| Alaska | $4,598 | -$476 [-2%] |
| Alabama | $4,429 | -$645 [-1%] |
| Arkansas | $6,359 | $1285 [14%] |
| Arizona | $4,205 | -$869 [-4%] |
| California | $5,728 | $654 [15%] |
| Colorado | $5,887 | $813 [15%] |
| Connecticut | $5,147 | $73 [7%] |
| Washington, D.C. | $6,543 | $1469 [9%] |
| Delaware | $5,646 | $572 [-2%] |
| Florida | $5,020 | -$54 [-1%] |
| Georgia | $5,046 | -$28 [12%] |
| Hawaii | $2,711 | -$2363 [-28%] |
| Iowa | $5,057 | -$17 [-7%] |
| Idaho | $3,263 | -$1811 [-25%] |
| Illinois | $4,532 | -$542 [-3%] |
| Indiana | $4,432 | -$642 [-7%] |
| Kansas | $5,762 | $688 [0%] |
| Kentucky | $7,075 | $2001 [12%] |
| Louisiana | $8,267 | $3193 [44%] |
| Massachusetts | $5,874 | $800 [2%] |
| Maryland | $5,357 | $283 [2%] |
| Maine | $3,761 | -$1313 [-16%] |
| Michigan | $5,972 | $898 [26%] |
| Minnesota | $5,142 | $68 [6%] |
| Missouri | $6,079 | $1005 [12%] |
| Mississippi | $6,599 | $1525 [11%] |
| Montana | $6,438 | $1364 [8%] |
| North Carolina | $2,986 | -$2088 [-19%] |
| North Dakota | $4,616 | -$458 [-11%] |
| Nebraska | $5,156 | $82 [4%] |
| New Hampshire | $4,359 | -$715 [-15%] |
| New Jersey | $4,422 | -$652 [4%] |
| New Mexico | $4,679 | -$395 [-1%] |
| Nevada | $4,588 | -$486 [-4%] |
| New York | $4,400 | -$674 [-23%] |
| Ohio | $3,389 | -$1685 [-20%] |
| Oklahoma | $5,098 | $24 [6%] |
| Oregon | $4,475 | -$599 [-9%] |
| Pennsylvania | $5,603 | $529 [2%] |
| Rhode Island | $6,684 | $1610 [17%] |
| South Carolina | $4,348 | -$726 [-8%] |
| South Dakota | $6,436 | $1362 [15%] |
| Tennessee | $6,246 | $1172 [8%] |
| Texas | $6,669 | $1595 [24%] |
| Utah | $3,761 | -$1313 [-14%] |
| Virginia | $3,373 | -$1701 [-21%] |
| Vermont | $4,302 | -$772 [-11%] |
| Washington | $3,489 | -$1585 [-6%] |
| Wisconsin | $4,352 | -$722 [-14%] |
| West Virginia | $4,888 | -$186 [-8%] |
| Wyoming | $5,622 | $548 [1%] |
Tesla Model X insurance cost by state
| State | Average rate | Compared to national average |
|---|---|---|
| Alaska | $4,152 | -$653 [-2%] |
| Alabama | $4,357 | -$448 [-1%] |
| Arkansas | $5,679 | $874 [15%] |
| Arizona | $4,169 | -$636 [-5%] |
| California | $7,043 | $2238 [16%] |
| Colorado | $6,034 | $1229 [15%] |
| Connecticut | $5,210 | $405 [7%] |
| Washington, D.C. | $5,538 | $733 [9%] |
| Delaware | $4,921 | $116 [-2%] |
| Florida | $4,388 | -$417 [-1%] |
| Georgia | $5,398 | $593 [13%] |
| Hawaii | $2,456 | -$2349 [-29%] |
| Iowa | $4,645 | -$160 [-7%] |
| Idaho | $3,087 | -$1718 [-27%] |
| Illinois | $4,344 | -$461 [-3%] |
| Indiana | $3,930 | -$875 [-7%] |
| Kansas | $5,116 | $311 [0%] |
| Kentucky | $6,408 | $1603 [12%] |
| Louisiana | $7,306 | $2501 [47%] |
| Massachusetts | $5,068 | $263 [2%] |
| Maryland | $5,189 | $384 [2%] |
| Maine | $3,549 | -$1256 [-17%] |
| Michigan | $5,838 | $1033 [28%] |
| Minnesota | $5,265 | $460 [6%] |
| Missouri | $6,773 | $1968 [12%] |
| Mississippi | $5,910 | $1105 [11%] |
| Montana | $5,613 | $808 [8%] |
| North Carolina | $3,611 | -$1194 [-20%] |
| North Dakota | $3,993 | -$812 [-12%] |
| Nebraska | $5,077 | $272 [5%] |
| New Hampshire | $3,968 | -$837 [-16%] |
| New Jersey | $4,587 | -$218 [4%] |
| New Mexico | $4,579 | -$226 [-1%] |
| Nevada | $4,197 | -$608 [-5%] |
| New York | $4,020 | -$785 [-24%] |
| Ohio | $3,095 | -$1710 [-21%] |
| Oklahoma | $4,851 | $46 [6%] |
| Oregon | $3,981 | -$824 [-9%] |
| Pennsylvania | $4,962 | $157 [3%] |
| Rhode Island | $5,871 | $1066 [18%] |
| South Carolina | $4,139 | -$666 [-8%] |
| South Dakota | $6,326 | $1521 [15%] |
| Tennessee | $5,255 | $450 [9%] |
| Texas | $7,226 | $2421 [26%] |
| Utah | $3,357 | -$1448 [-15%] |
| Virginia | $3,060 | -$1745 [-22%] |
| Vermont | $4,013 | -$792 [-12%] |
| Washington | $3,992 | -$813 [-7%] |
| Wisconsin | $4,013 | -$792 [-14%] |
| West Virginia | $4,246 | -$559 [-8%] |
| Wyoming | $7,240 | $2435 [2%] |
Tesla Model Y insurance cost by state
| State | Average rate | Compared to national average |
|---|---|---|
| Alaska | $3,441 | -$88 [-2%] |
| Alabama | $3,406 | -$123 [-2%] |
| Arkansas | $4,052 | $523 [20%] |
| Arizona | $3,146 | -$383 [-6%] |
| California | $4,616 | $1087 [22%] |
| Colorado | $4,564 | $1035 [21%] |
| Connecticut | $3,855 | $326 [10%] |
| Washington, D.C. | $4,197 | $668 [13%] |
| Delaware | $3,650 | $121 [-3%] |
| Florida | $3,666 | $137 [-2%] |
| Georgia | $4,558 | $1029 [18%] |
| Hawaii | $1,890 | -$1639 [-40%] |
| Iowa | $3,573 | $44 [-10%] |
| Idaho | $2,138 | -$1391 [-36%] |
| Illinois | $3,417 | -$112 [-4%] |
| Indiana | $3,000 | -$529 [-10%] |
| Kansas | $4,169 | $640 [0%] |
| Kentucky | $4,445 | $916 [17%] |
| Louisiana | $5,686 | $2157 [64%] |
| Massachusetts | $3,222 | -$307 [3%] |
| Maryland | $3,425 | -$104 [2%] |
| Maine | $2,420 | -$1109 [-23%] |
| Michigan | $4,647 | $1118 [38%] |
| Minnesota | $3,562 | $33 [9%] |
| Missouri | $4,897 | $1368 [17%] |
| Mississippi | $3,667 | $138 [15%] |
| Montana | $3,861 | $332 [11%] |
| North Carolina | $2,524 | -$1005 [-27%] |
| North Dakota | $3,070 | -$459 [-16%] |
| Nebraska | $4,180 | $651 [6%] |
| New Hampshire | $2,645 | -$884 [-22%] |
| New Jersey | $3,174 | -$355 [6%] |
| New Mexico | $3,450 | -$79 [-1%] |
| Nevada | $3,182 | -$347 [-6%] |
| New York | $2,920 | -$609 [-32%] |
| Ohio | $2,459 | -$1070 [-29%] |
| Oklahoma | $3,787 | $258 [8%] |
| Oregon | $2,968 | -$561 [-13%] |
| Pennsylvania | $3,799 | $270 [4%] |
| Rhode Island | $4,327 | $798 [25%] |
| South Carolina | $3,044 | -$485 [-11%] |
| South Dakota | $4,079 | $550 [21%] |
| Tennessee | $3,704 | $175 [12%] |
| Texas | $4,884 | $1355 [35%] |
| Utah | $2,736 | -$793 [-20%] |
| Virginia | $2,359 | -$1170 [-30%] |
| Vermont | $2,530 | -$999 [-16%] |
| Washington | $2,967 | -$562 [-9%] |
| Wisconsin | $2,912 | -$617 [-19%] |
| West Virginia | $3,510 | -$19 [-11%] |
| Wyoming | $4,717 | $1188 [2%] |
*Some state rates will vary based on the addition of a hurricane deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. and may be much higher when included.
People ask
How much is Tesla insurance in New York?
The average annual cost of Tesla insurance in New York is $2,179 based on a 2023 Tesla Model 3.
Tesla car insurance cost by model
The Tesla model you choose will impact what you pay for car insurance. Generally, the more expensive the car the more expensive it will be to insure.
The rates below compare liability only coverage and full coverage rates for Tesla models.
Tesla car insurance cost by driver age
The age of the driver is one of the biggest factors affecting insurance rates. Younger drivers, especially teens, will see much higher rates that will go down as the driver gets older. The rates below are based on the average of all trim levels for each Tesla model.
| Company | Avg annual premium | Avg monthly premium |
|---|
Tesla car insurance trends by model
Rates generally increase for newer models, even of the same car. Newer models have the latest technology and have not yet seen much depreciationDepreciation is the decrease in your car's value over time due to wear and tear, age and mileage. Depreciation is used to determine the actual cash value of a vehicle in the event of a total loss., so they tend to cost more to insure. Here's a look at how rates have changed over the years for Tesla models.
Best car insurance for a Tesla
To help you choose the best car insurance for your Tesla, we ranked top companies based on their rates for a Model 3, our survey of insurance customers for the 2025 best car insurance companies ranking, and third-party rankings. While price is important you also want a company you can trust, so we included AM Best financial stability rankings and National Association of Insurance Commissioners (NAIC) complaint ratios.
State Farm came out on top for insuring a Tesla with a perfect score of 4.74/5. Nationwide came in second. Tesla's proprietary insurance program is not included as data is not available.
*Average of all Tesla models and trim levels.
**Score based on our survey of insurance customers', rating companies based on customer service, recommendation to others, claims handling and renewal rate.
The Tesla car insurance program
Tesla car insurance directly from the company isn't ranked in our list of the best companies due to a lack of data; its usage-based pricing system means there are no average rates.
The Tesla Insurance program is underwritten by State National Insurance and is only available in the following states at this time:
- Arizona
- California*
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
*In California, the Tesla Insurance program doesn't use the Safety Score due to state laws.
Real-time driving behavior plays a big part in the cost of Tesla insurance premiums. According to the company, insurance for Tesla Model S and Tesla Model 3 could be 20% to 40% lower for the average driver — and as much as 60% less for safe drivers. However, there isn’t data available yet to confirm if this is the case.
Why is Tesla insurance so expensive?
There are a few different reasons why the cost of Tesla insurance is higher than what you would pay to cover the average car:
- Teslas are expensive cars. The value of your car will affect how much you pay for car insurance. This is because your car’s value is how much the insurance company will have to pay if the car is totaled. The base price of a Tesla Model 3 in 2025 is $44,130, according to Kelley Blue Book. The prices of the other Tesla models are even higher:
- Model Y:Â $46,880
- Model S:Â $76,880
- Model X:Â $81,880
- They’re expensive to repair. Not all shops can fix a Tesla. As a result, those catering to Teslas can charge higher prices. The tech can be complex and only original Tesla parts are typically available. Additionally, specialized tools are needed for repairs. Insurance companies factor repair costs into your rates.
- They have unibody construction. Tesla is moving toward unibody construction -- larger aluminum panels to achieve better stability and safety. This means a larger part of the vehicle may need to be replaced in case of damage – even minor damage. The extra labor and larger pieces to repair can again raise the insurance price because the companies know the cost of repairs is high.
People ask
Is it cheaper to have a Tesla or a gas car?
The average purchase price of a Tesla is higher than that of a gas-powered vehicle, and they cost more to insure and repair. However, there are many makes and models of gas-powered cars that are more expensive than a base-model Tesla, so it depends on which vehicle you buy.
Tesla repair costs: Why is it more expensive than other EVs?
Teslas are more expensive to repair than other EVs on the market, according to a Kelley Blue Book report. The average cost of repairs is $5,552 for Teslas compare to $4,474 for other EVs; the average repair cost for gas vehicles is $4,205. The factors behind this difference include:
- Tesla batteries are not modular, so they must be replaced completely if they are damaged even a little
- Tesla models change in design regularly, which makes it harder to find replacement parts
- Tesla is moving towards fewer large pieces for the body, which means a larger area needs replacement even if a small part of it is damaged.
How to lower on Tesla insurance rates
If you're looking to reduce your Tesla insurance cost, there are a few things you can do.Â
- Shop around. Be sure to get quotes from at least three insurance companies as rates vary quite a bit from company to company. For a Tesla Model Y Long Range, for example, we found rates ranging from $2,499 at State Farm to $4,825 at Allstate.
- Look into the Tesla Insurance program if it’s offered in your state
- Check out other usage-based programs. Most major insurance companies offer some form of usage-based program that can earn you a discount. "Telematics are offered by many insurance companies," Ruiz says., but notes that not all drivers will save that way. "Usage based programs tend to benefit low mileage driving."
- Find savings the same way you would with any car insurance policy by:
- Bundling your home and auto together
- Asking about discounts, like good driver or paperless billing
- Raising your deductible
ASK AN EXPERT Our experts are here to provide real answers to your insurance questions. Is there something you want to know? Ask below.Expert answers to your questions
Leslie Kasperowicz
Executive editor.
Ask an expert
Methodology
Insurance.com commissioned Quadrant Data Solutions to provide rates for all Tesla models and trim levels in all states and D.C. Rates were fielded based on a 40-year-old male driver with a full coverage policy at 100/300/100 and $500 deductibles. We also gathered rates for a teen driver age 18 for all models and trim levels.
The best companies rating is based on Quadrant rates as well as our survey of insurance customers for the best car insurance companies of 2025 ranking. Additional data points included are AM Best financial stability ratings, where the top score is A++ and National Association of Insurance Commissioners (NAIC) complaint ratio, where a score below 1.00 is considered a below-average volume.
Tesla car insurance: Frequently asked questions
Is Tesla insurance expensive?
Tesla insurance is more expensive than the average car insurance cost at $3,466 a year compared to $2,304 a year.
Is Tesla's insurance program cheaper than other insurers?
It might be for some people. Tesla insurance is a usage-based program, so the actual cost will depend on your driving habits. According to Tesla, safe drivers can save up to 60%, but how much you’ll pay depends on your base rate, which is based on traditional factors like your age and driving record.
Does Tesla offer gap insurance?
Yes, Tesla offers gap insurance through the Tesla Insurance program. Additionally, gap insurance is included if you lease a car through Tesla.
How much is insurance through Tesla?
Tesla doesn't publish its insurance rates. Insurance policies are priced based on driving habits recorded by built-in monitoring systems.
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