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Buying a Tesla will save you money on gas, making it cost-effective to run. And Teslas consistently earn top safety scores from the National Highway Traffic Safety Administration.

But does that translate to cheaper insurance? Unfortunately, the cost of Tesla insurance is actually above average. According to Insurance.com’s 2022 study, full coverage on a 2021 Model 3 Tesla costs $2,503 a year on average. So, why is Tesla insurance so high?

The complex systems in an electric engine and the specialized tools needed to repair it are a big part of the reason electric car insurance costs so much. However, you can save on insurance for your Tesla with a little research. Read on to learn how.

KEY TAKEAWAYS
  • It costs $2,503 a year on average to insure a 2021 Tesla Model 3, based on 2022 rates.
  • Tesla insurance is more expensive than average due to the specialized tools and parts required to repair it.
  • Tesla offers its own insurance program in 11 states and continues to expand access.

Are Teslas expensive to insure?

On average, a Tesla costs a little more to insure than the average car. While the average cost of car insurance in 2022 is $2,316, a Tesla Model 3 averages $2,503. Rates for other Tesla models can be even more costly:

  • Tesla Model Y: $2,599
  • Tesla Model X: $3,759
  • Tesla Model S: $4,318

How much is insurance on a Tesla?

Based on the average annual rate of $2,503 a year, Tesla insurance costs about $209 a month for a Model S.

Like all car insurance, Tesla rates will vary based on factors like location, driver history and coverage levels. Let’s take a look at the cost of a Tesla by state, as well as average rates for all Tesla models.

Tesla insurance rates by state

Insurance.com’s 2022 study found that Washington is the most expensive state to insure a Tesla Model 3, at an average rate of $3,575 a year. The cheapest state to insure a Tesla Model 3 is Maine, with an average rate of $1,827 a year. Take a look at how your state ranks for all Tesla models below.

AL AK AZ AR CA CO CT DC DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY

Tesla Model 3 insurance cost by state

StateAverage RateCompared to National Average
Alaska$1,900-$357 [-16%]
Alabama$2,294$37 [2%]
Arkansas$2,498$241 [11%]
Arizona$2,070-$187 [-8%]
California$2,994$737 [33%]
Colorado$2,516$259 [11%]
Connecticut$2,368$111 [5%]
District of Columbia$3,011$754 [33%]
Delaware$2,303$46 [2%]
Florida$2,966$709 [31%]
Georgia$2,716$459 [20%]
Hawaii$1,846-$411 [-18%]
Iowa$1,816-$441 [-20%]
Idaho$1,505-$752 [-33%]
Illinois$1,781-$476 [-21%]
Indiana$1,983-$274 [-12%]
Kansas$2,422$165 [7%]
Kentucky$2,348$91 [4%]
Louisiana$3,430$1173 [52%]
Massachusetts$2,230-$27 [-1%]
Maryland$2,302$45 [2%]
Maine$1,527-$730 [-32%]
Michigan$4,160$1903 [84%]
Minnesota$2,121-$136 [-6%]
Missouri$3,546$1289 [57%]
Mississippi$2,445$188 [8%]
Montana$2,640$383 [17%]
North Carolina$1,748-$509 [-23%]
North Dakota$2,015-$242 [-11%]
Nebraska$2,361$104 [5%]
New Hampshire$1,511-$746 [-33%]
New Jersey$1,934-$323 [-14%]
New Mexico$2,030-$227 [-10%]
Nevada$2,039-$218 [-10%]
New York$1,928-$329 [-15%]
Ohio$1,541-$716 [-32%]
Oklahoma$2,128-$129 [-6%]
Oregon$1,777-$480 [-21%]
Pennsylvania$1,826$1826 [-19%]
Rhode Island$2,741$484 [21%]
South Carolina$2,277$20 [1%]
South Dakota$2,551$294 [13%]
Tennessee$2,158-$99 [-4%]
Texas$2,815$558 [25%]
Utah$1,883-$374 [-17%]
Virginia$1,831-$426 [-19%]
Vermont$1,695-$562 [-25%]
Washington$1,905-$352 [-16%]
Wisconsin$1,599-$658 [-29%]
West Virginia$2,380$123 [5%]
Wyoming$2,698$441 [20%]

Tesla Model S insurance cost by state

StateAverage RateCompared to National Average
Alaska$3,353-$555 [-14%]
Alabama$4,162$254 [6%]
Arkansas$4,453$545 [14%]
Arizona$3,284-$624 [-16%]
California$4,062$154 [4%]
Colorado$4,318$410 [10%]
Connecticut$3,500-$408 [-10%]
District of Columbia$6,261$2353 [60%]
Delaware$3,660-$248 [-6%]
Florida$4,468$560 [14%]
Georgia$3,374-$534 [-14%]
Hawaii$2,738-$1170 [-30%]
Iowa$3,661-$247 [-6%]
Idaho$3,637-$271 [-7%]
Illinois$3,149-$759 [-19%]
Indiana$3,632-$276 [-7%]
Kansas$4,513$605 [15%]
Kentucky$3,357-$551 [-14%]
Louisiana$4,430$522 [13%]
Massachusetts$3,750-$158 [-4%]
Maryland$3,695-$213 [-5%]
Maine$2,929-$979 [-25%]
Michigan$8,032$4124 [106%]
Minnesota$4,230$322 [8%]
Missouri$6,834$2926 [75%]
Mississippi$3,856-$52 [-1%]
Montana$5,086$1178 [30%]
North Carolina$2,582-$1326 [-34%]
North Dakota$4,492$584 [15%]
Nebraska$4,476$568 [15%]
New Hampshire$2,526-$1382 [-35%]
New Jersey$2,801-$1107 [-28%]
New Mexico$4,194$286 [7%]
Nevada$3,411-$497 [-13%]
New York$2,820-$1088 [-28%]
Ohio$3,034-$874 [-22%]
Oklahoma$4,497$589 [15%]
Oregon$3,157-$751 [-19%]
Pennsylvania$2,843-$1065 [-27%]
Rhode Island$4,133$225 [6%]
South Carolina$2,928-$980 [-25%]
South Dakota$5,824$1916 [49%]
Tennessee$3,803-$105 [-3%]
Texas$3,938$30 [1%]
Utah$3,508-$400 [-10%]
Virginia$2,908-$1000 [-26%]
Vermont$2,969-$939 [-24%]
Washington$3,443-$465 [-12%]
Wisconsin$2,934-$974 [-25%]
West Virginia$4,091$183 [5%]
Wyoming$5,561$1653 [42%]

Tesla Model X insurance cost by state

StateAverage RateCompared to National Average
Alaska$2,612-$1078 [-29%]
Alabama$3,630-$60 [-2%]
Arkansas$4,406$716 [19%]
Arizona$3,298-$392 [-11%]
California$4,065$375 [10%]
Colorado$4,300$610 [17%]
Connecticut$3,968$278 [8%]
District of Columbia$7,497$3807 [103%]
Delaware$3,348-$342 [-9%]
Florida$4,850$1160 [31%]
Georgia$3,918$228 [6%]
Hawaii$2,517-$1173 [-32%]
Iowa$3,359-$331 [-9%]
Idaho$3,772$82 [2%]
Illinois$2,884-$806 [-22%]
Indiana$3,276-$414 [-11%]
Kansas$5,513$1823 [49%]
Kentucky$3,482-$208 [-6%]
Louisiana$3,914$224 [6%]
Massachusetts$3,601-$89 [-2%]
Maryland$3,287-$403 [-11%]
Maine$2,207-$1483 [-40%]
Michigan$6,968$3278 [89%]
Minnesota$3,549-$141 [-4%]
Missouri$5,853$2163 [59%]
Mississippi$3,842$152 [4%]
Montana$4,838$1148 [31%]
North Carolina$2,510-$1180 [-32%]
North Dakota$3,877$187 [5%]
Nebraska$3,800$110 [3%]
New Hampshire$2,612-$1078 [-29%]
New Jersey$2,444-$1246 [-34%]
New Mexico$3,533-$157 [-4%]
Nevada$3,441-$249 [-7%]
New York$2,794-$896 [-24%]
Ohio$2,753-$937 [-25%]
Oklahoma$3,833$143 [4%]
Oregon$3,161-$529 [-14%]
Pennsylvania$2,812-$878 [-24%]
Rhode Island$4,753$1063 [29%]
South Carolina$3,150-$540 [-15%]
South Dakota$4,944$1254 [34%]
Tennessee$3,404-$286 [-8%]
Texas$3,925$235 [6%]
Utah$3,170-$520 [-14%]
Virginia$2,317-$1373 [-37%]
Vermont$2,353-$1337 [-36%]
Washington$3,285-$405 [-11%]
Wisconsin$2,914-$776 [-21%]
West Virginia$3,052-$638 [-17%]
Wyoming$4,606$916 [25%]

Tesla Model Y insurance cost by state

StateAverage RateCompared to National Average
Alaska$1,697-$455 [-21%]
Alabama$2,427$275 [13%]
Arkansas$2,209$57 [3%]
Arizona$2,020-$132 [-6%]
California$2,603$451 [21%]
Colorado$2,858$706 [33%]
Connecticut$2,019-$133 [-6%]
District of Columbia$2,502$350 [16%]
Delaware$1,868-$284 [-13%]
Florida$3,097$945 [44%]
Georgia$2,383$231 [11%]
Hawaii$1,721-$431 [-20%]
Iowa$1,627-$525 [-24%]
Idaho$1,353-$799 [-37%]
Illinois$1,742-$410 [-19%]
Indiana$1,703-$449 [-21%]
Kansas$2,392$240 [11%]
Kentucky$2,533$381 [18%]
Louisiana$2,878$726 [34%]
Massachusetts$1,784-$368 [-17%]
Maryland$1,826-$326 [-15%]
Maine$1,222-$930 [-43%]
Michigan$4,202$2050 [95%]
Minnesota$2,107-$45 [-2%]
Missouri$4,721$2569 [119%]
Mississippi$2,023-$129 [-6%]
Montana$2,515$363 [17%]
North Carolina$1,825-$327 [-15%]
North Dakota$1,978-$174 [-8%]
Nebraska$2,768$616 [29%]
New Hampshire$1,195-$957 [-44%]
New Jersey$1,810-$342 [-16%]
New Mexico$1,930-$222 [-10%]
Nevada$1,746-$406 [-19%]
New York$2,122-$30 [-1%]
Ohio$1,397-$755 [-35%]
Oklahoma$2,155$3 [0%]
Oregon$1,639-$513 [-24%]
Pennsylvania$1,466-$686 [-32%]
Rhode Island$2,300$148 [7%]
South Carolina$2,039-$113 [-5%]
South Dakota$2,732$580 [27%]
Tennessee$1,791-$361 [-17%]
Texas$3,638$1486 [69%]
Utah$1,728-$424 [-20%]
Virginia$1,522-$630 [-29%]
Vermont$1,349-$803 [-37%]
Washington$1,848-$304 [-14%]
Wisconsin$1,443-$709 [-33%]
West Virginia$2,692$540 [25%]
Wyoming$2,624$472 [22%]

Cheapest Tesla insurance companies by model

Regardless of what model car you drive,comparing car insurance rates is one of the most effective ways to get the best deal. No two insurance companies will have an identical price for the same policy, but you won’t know which one is the cheapest unless you shop around. Below you’ll find 2022 rates for the top car insurance companies for each Tesla model.

Tesla Model 3 Rates
CompanyAverage annual rate
Allstate$4254
Farmers$2752
GEICO$1626
Nationwide$1973
Progressive$1853
State Farm$1421
CompanyAverage annual rate

Why is Tesla insurance so high?

Let’s break down some of the reasons why it costs more to insure a Tesla than the average car.

  • They’re expensive cars. The value of your car will affect how much you pay for car insurance since that’s how much the insurance company will have to pay if the car is totaled. The base price of a Tesla Model 3 in 2022 is $46,990. The prices of the other Tesla models are even higher:
    • Model Y: $65,990
    • Model S: $104,990
    • Model X: $112,590
  • They’re expensive to repair. Not all shops can fix a Tesla. As a result, the ones that do cater 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 area of the vehicle may need to be replaced in case of damage, even if it's small. The extra labor and larger pieces to repair can again raise the price of insurance because the companies know the cost of repairs is high.

Tesla’s direct insurance program

Tesla began offering its own coverage in August 2019 to provide customers with more affordable insurance. The EV manufacturer is on to something. According to Mike Brown of Breeze Insurance, “a recent study found that 66% of vehicle owners would be interested in buying auto insurance from an automobile manufacturer instead of from a traditional carrier.”

The Tesla Insurance program is underwritten by State National Insurance and is currently only available in these states:

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

There are plans to expand to other states as well.

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.

Besides the lower price, the Tesla insurance program provides unique coverages specific to the state-of-the-art electric vehicle. You can add these additional offerings to your base coverage (for a cost).

Tesla insurance coverage options

In addition to providing all of the standard insurance coverages, Tesla’s program offers:

  • Autonomous vehicle owner coverage.Its most unique coverage, autonomous vehicle coverage is not available through other car insurers. Tesla Insurance will provide liability coverage for property damage or bodily injury if your car gets in an accident while operating in autonomous vehicle mode.
  • Wall charger coverage.You'll have up to $3,000 available for loss or damage of the power charger as long as the damage isn't from a manufacturer defect or negligence.
  • Electronic key replacement.Covers up to $500 per loss of your Tesla electronic keys. Coverage is limited to two claims per policy period.
  • Auto loan/lease gap insurance.The coverage will pay for the difference between the vehicle value versus what's owed in car payments if your Tesla is a total loss after an accident.
  • Cyber identity fraud coverage. A Tesla is one of the most technologically advanced vehicles. It's connected to a cyber network that may potentially expose you to some risk. This coverage pays up to $15,000 in digital identity fraud losses per occurrence and up to $30,000 per period if your information is compromised, according to Insurance.com’s report.

How to save on Tesla insurance

If you're looking to reduce your Tesla insurance cost, there are a few things you can do. Even though a Tesla is a special car, you can still shop around and compare rates.

Be sure to get quotes from at least three insurance companies. Rates vary quite a bit. For a Tesla Model 3 Long Range, for example, Insurance.com’s 2022 study found rates ranging from $1,494 at State Farm to $4,563 at Allstate.

And don’t forget to compare the Tesla insurance program if it’s offered in your state.

You can also save in 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
  • Raise your deductible

Tesla car insurance FAQs

Is Tesla's insurance program cheaper than other insurers?

As with all insurance, it depends on a lot of factors. According to the manufacturer, safe drivers can save up to 60%, but how much you’ll actually pay depends on your base rate. And, the top-end savings are usually very difficult to achieve.

Does Tesla offer gap insurance?

Tesla does not currently offer gap insurance through its Tesla Insurance program. However, if you lease a car through Tesla, gap insurance is included.

Methodology

Insurance.com commissioned 2022 insurance rates from Quadrant Data Solutions for all Tesla models 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.

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