Tesla Insurance program: What you need to know

What is the Tesla Insurance program?

Tesla Insurance is a usage-based auto insurance program that calculates monthly premiums based on driving habits, coverage level, garaging address and vehicle model rather than personal factors like age or credit score.

Tesla Insurance uses telematics to calculate a Safety Score based on driving habits, such as braking, speed and the time of day. Safe-driving habits result in a higher score and potential savings on your insurance rates. However, California doesn’t allow Tesla Insurance to use telematics to determine rates.

Coverage levels also affect rates. Higher coverage means the insurance company would have to pay more if there’s a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing., so rates are higher. Tesla Insurance offers liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people., other coverages required by state law, and options such as collision and comprehensive.

Where you keep your car also affects rates. For example, drivers living in areas with high theft and vandalism rates often see higher insurance premiums.

Finally, the vehicle you insure affects rates. While all Tesla vehicles, including the Model S, Model 3, Model X, Model Y and Cybertruck, are eligible for coverage, pricier vehicles typically have higher insurance rates because they are more costly to repair or replace.

Although coverage is currently available in only 12 states, Tesla plans to expand its footprint.

Tesla Insurance coverage options

Tesla Insurance offers nine coverage types, including liability, collision, comprehensive, uninsured/underinsured motorist, roadside assistance, rental car, medical payments, personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. and gap insurance.

Tesla Insurance coverage options include:

Liability
Uninsured/underinsured motorist
Collision
Comprehensive
Roadside assistance
Rental car
Medical payments
Personal injury protection
Gap insurance

Tesla Insurance will also file an SR-22 or FR-44 form if your state requires you to show proof of insurance coverage due to violations such as a DUI.

Depending on their state of residence, drivers may also be eligible for insurance discounts. Tesla Insurance offers discounts for defensive driving coursework, multi-car or group coverage, airbag or anti-theft device installation, and good driver, elite driver or mature operator status, depending on state of residence.

Drivers in Texas and Arizona may be eligible for a 10% Full Self-Driving (Supervised) discount if they use the feature at least half of their driving time.

Benefits of the Tesla Insurance program

Tesla Insurance offers two primary benefits: it integrates with the Tesla app that drivers already use for vehicle maintenance, and it excludes personal factors like age and credit score from rate calculations, which may lower costs for safe drivers.

Additionally, Tesla Insurance is usage-based, so factors like age and credit score, which other insurance companies use, don’t affect rates. Safe drivers may find Tesla Insurance more affordable, as driving habits determine rates, not extraneous factors.

How does Tesla Insurance work?

Tesla Insurance calculates rates monthly using a Safety Score derived from six telematics-monitored driving behaviors: hard braking, aggressive turning, excessive speeding, unsafe following, late-night driving and seatbelt use. Drivers receive a real-time score through the Tesla app and can adjust their habits before the next billing cycle.

Tesla Insurance calculates monthly premiums using a Safety Score derived from real-time telematics. The score measures six driving behaviors:

Hard braking
Aggressive turning
Excessive speeding
Unsafe following distance
Late-night driving
Seatbelt use

Drivers can monitor their score in the Tesla app and adjust their habits to improve rates before the next billing cycle.

In California, the Safety Score does not affect rates; it appears in the app only to help drivers identify areas for improvement.

Where is Tesla Insurance available?

Drivers can get Tesla Insurance in Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia. It has been approved to operate in Washington, but may not yet be available.

However, Tesla Insurance in California differs slightly from that in other states. Unlike in other states, Tesla doesn’t use a Safety Score to determine rates. Although the Safety Score still appears on the app, it can only be used by drivers to identify areas where they can improve their driving habits.

How does Tesla Insurance calculate your rate?

Tesla Insurance does not publish average premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. figures. Rates are calculated individually each month based on four confirmed factors:

Safety Score: A telematics-based score measuring hard braking, aggressive turning, excessive speeding, unsafe following distance, late-night driving and seatbelt use. A higher score produces a lower premium.
Coverage level: Higher coverage increases the premium because it raises the insurer's potential payout per claim.
Garaging address: Drivers in areas with higher theft or vandalism rates pay more.
Vehicle model: More expensive Tesla models, including the Model S, Model X and Cybertruck, carry higher rates because repair and replacement costs are greater.

In California, the Safety Score does not affect rates. Premiums are calculated using traditional methods, and the Safety Score appears in the app only as a driving feedback tool.

Is Tesla Insurance good?

Tesla Insurance is a strong option for safe, data-comfortable drivers but may not be the best fit for everyone. There are no published average rates, so cost comparisons require a personalized quote through the Tesla app. Drivers with excellent habits who would face higher premiums with traditional insurers due to age or credit score stand to benefit most.

Tesla insurance vs. other insurance companies with usage-based programs

Drivers seeking a usage-based program similar to Tesla Insurance can compare rates from State Farm and Nationwide, both of which offer telematics-based discounts for Tesla vehicles.

Insurance company	Program name	Discount for safe driving	Tesla coverage
Tesla Insurance	Safety Score	Not publicly disclosed	Yes
State Farm	Drive Safe & Save	Up to 30%	Yes
Nationwide	Smart Ride/Smart Miles	Up to 40% for Smart Ride	Yes

State Farm Tesla insurance

State Farm offers a usage-based program called Drive Safe & Save. Like the Tesla program, it monitors your driving habits to earn you a discount. State Farm offers a 10% discount just for signing up, and says your rates could be discounted by up to 30% after the monitoring period.

Nationwide Tesla Insurance

Nationwide offers two usage-based programs: Smart Ride and Smart Miles. One discounts your rate for good driving habits, while the other is based on the number of miles you drive. The Smart Ride discount is up to 40%.

Pros and cons of Tesla Insurance

Tesla Insurance has clear advantages for safe drivers and specific limitations that make it a poor fit for others. The following pros and cons reflect the program's current structure across its 12 available states.

Pros of Tesla Insurance include:

App integration. Drivers manage vehicle monitoring, insurance quotes and policy changes in a single Tesla app.
Driving-based pricing. Age and credit score do not affect premiums, which may lower costs for safe drivers.
Coverage options. Tesla drivers can add coverages, such as roadside assistance and gap insurance, to tailor their policies.
Vehicle options. Drivers in California can add non-Tesla vehicles to their policies.

Cons of Tesla Insurance include:

Availability. Tesla Insurance is only available in 12 states.
No bundling. Since Tesla only offers auto insurance, drivers can’t bundle policies, such as home or renters insurance. Other than in California, you can only insure a Tesla on your policy.
Service. Tesla requires drivers to handle insurance issues, such as getting a quote and filing a claim, through the app. It’s challenging to speak with a customer service representative.
Scoring. Drivers may receive a low Safety Score due to factors beyond their control, such as sharp curves or other drivers stopping short in front of them.

Usage-based insurance programs like Tesla's can benefit drivers who maintain safe habits, according to Aaron VanTuyl, communications manager for the Washington State Office of the Insurance Commissioner. VanTuyl also noted that privacy is the primary drawback for drivers who are uncomfortable sharing driving data with their insurer.

“Usage-based insurance is a good way for insurance companies to accurately price a driver’s risk, as it’s based on your specific driving patterns. It could be a more cost-conscious option for drivers with safe, responsible habits,” said VanTuyl. “The main drawback is the privacy concerns, but if you’re comfortable sharing your information with your insurance company, usage-based insurance could be the right option.”

How to get Tesla Insurance

Tesla owners can purchase a Tesla insurance policy in available states directly in the Tesla app.

Open the Tesla app on your mobile device.
Navigate to the insurance section and enter your VIN and driver's license number to generate a quote.
Select your coverage options and confirm your policy.
Download policy documents and manage your coverage directly through the app.

Although Tesla recommends that drivers get a quote and handle all policy changes through the app, drivers can call 844-34-TESLA (844-348-3752) for assistance.

Frequently asked questions

Is Tesla Insurance available in NY?

No, Tesla Insurance is not available in New York. New York residents can compare Tesla insurance rates from traditional carriers by using Insurance.com's quote comparison tool or by contacting licensed insurers directly.

Can you get Tesla Insurance without owning a Tesla?

No, Tesla Insurance requires ownership of at least one Tesla vehicle to obtain coverage. In California, policyholders may add non-Tesla vehicles to an existing policy, but a Tesla must be the qualifying vehicle.

Is Tesla Insurance cheaper than GEICO or State Farm?

Whether Tesla Insurance is cheaper than GEICO or State Farm depends on the driver profile. Tesla Insurance does not use age or credit score, so young drivers or those with poor credit may pay less with Tesla. State Farm and GEICO use those factors, which can raise rates for higher-risk profiles. No published average rate comparisons are available; a personalized quote from each insurer is required to determine cost.