- How much does Tesla Model 3 insurance cost?
- Tesla Model 3 insurance cost by company
- Tesla Model 3 insurance cost by state
- Tesla Model 3 insurance cost by driver age
- Tesla Model 3 insurance coverage options
- Factors that affect Tesla Model 3 insurance costs
- Tesla Model 3 vs. other Tesla models
- Why is Tesla Model 3 insurance so expensive?
- How to lower Tesla Model 3 Insurance cost
- Methodology
- FAQ: Tesla Model 3 insurance
How much does Tesla Model 3 insurance cost?
Tesla Model 3 insurance costs an average of $3,871 for a full coverage policy with 100/300/100 in liability coverage and $500 deductibles, and $1,127 a year for a liability-only policy with 100/300/100 limits.
| Quick Stats | |
|---|---|
| Average annual rate | $3,871 (full coverage) $1,127 (liability-only) |
| Average monthly cost | $322 (full coverage) $94 (liability-only) |
| Cheapest insurer* | Travelers: $2,505 (Long-Range) $2,768 (Performance) |
| Most expensive insurer | Auto Club Enterprises: $6,040 (Long-Range) $6,293 (Performance) |
| Key cost driver | High repair and parts cost |
*USAA is cheaper for both trim levels, but only available to military members, veterans and their families.
Tesla Model 3 insurance cost by company
Travelers has the cheapest rates for a Tesla Model 3 at both trim levels, with the Long Range averaging $2,505 a year and the Performance at $2,768 a year. However, USAA is cheaper for qualifying military members, veterans and family members, with rates of $2,071 and $2,150, respectively.
Auto Club Enterprises has the highest rates for both trim levels: $6,040 for the Long Range and $6,293 for the Performance.
These are average costs, and your individual premiums will depend on factors like your driving record, your ZIP code and even your credit score. That’s why shopping around is key.
| Tesla model | Model type | Company | Average annual rate | Average monthly rate |
|---|---|---|---|---|
| Model 3 | Long Range | Allstate | $4,329 | $361 |
| Model 3 | Long Range | American Family | $2,650 | $221 |
| Model 3 | Long Range | Amica | $3,643 | $304 |
| Model 3 | Long Range | Auto Club Enterprises (AAA) | $6,040 | $503 |
| Model 3 | Long Range | Auto Club Group (AAA) | $3,932 | $328 |
| Model 3 | Long Range | Auto-Owners | $2,994 | $249 |
| Model 3 | Long Range | CSAA Insurance (AAA) | $5,057 | $421 |
| Model 3 | Long Range | Erie Insurance | $4,442 | $370 |
| Model 3 | Long Range | Farmers | $5,786 | $482 |
| Model 3 | Long Range | GEICO | $3,624 | $302 |
| Model 3 | Long Range | Mercury Insurance | $4,340 | $362 |
| Model 3 | Long Range | Nationwide | $2,799 | $233 |
| Model 3 | Long Range | Progressive | $3,920 | $327 |
| Model 3 | Long Range | State Farm | $2,841 | $237 |
| Model 3 | Long Range | Travelers | $2,505 | $209 |
| Model 3 | Long Range | USAA | $2,071 | $173 |
| Model 3 | Performance | Allstate | $4,617 | $385 |
| Model 3 | Performance | American Family | $2,700 | $225 |
| Model 3 | Performance | Amica | $3,924 | $327 |
| Model 3 | Performance | Auto Club Enterprises (AAA) | $6,293 | $524 |
| Model 3 | Performance | Auto Club Group (AAA) | $3,932 | $328 |
| Model 3 | Performance | Auto-Owners | $3,141 | $262 |
| Model 3 | Performance | CSAA Insurance (AAA) | $5,252 | $438 |
| Model 3 | Performance | Erie Insurance | $4,490 | $374 |
| Model 3 | Performance | Farmers | $5,893 | $491 |
| Model 3 | Performance | GEICO | $3,869 | $322 |
| Model 3 | Performance | Mercury Insurance | $4,340 | $362 |
| Model 3 | Performance | Nationwide | $2,847 | $237 |
| Model 3 | Performance | Progressive | $4,096 | $341 |
| Model 3 | Performance | State Farm | $3,217 | $268 |
| Model 3 | Performance | Travelers | $2,678 | $223 |
| Model 3 | Performance | USAA | $2,150 | $179 |
Tesla Model 3 insurance cost by state
At $6,879, Louisiana is the most expensive state to insure a Tesla Model 3, while Hawai'i has the lowest rates at $2,201 a year. These two states are the most and least expensive for car insurance; Tesla rates follow the overall trend.
Michigan ($5,958) and Nevada ($5,802) are second and third for the most expensive states for Tesla Model 3 insurance, while the bottom three are rounded out by Maine ($2,391) and Idaho ($2,656).
Factors about your location that affect car insurance rates include weather, crime rates and accident frequency.
| State | Average annual rate | Average monthly rate |
|---|---|---|
| Alaska | $3,492 | $291 |
| Alabama | $3,466 | $289 |
| Arkansas | $4,355 | $363 |
| Arizona | $3,761 | $313 |
| California | $4,532 | $378 |
| Colorado | $4,046 | $337 |
| Connecticut | $5,197 | $433 |
| Washington, D.C. | $5,251 | $438 |
| Delaware | $4,606 | $384 |
| Florida | $4,041 | $337 |
| Georgia | $3,584 | $299 |
| Hawaii | $2,201 | $183 |
| Iowa | $3,309 | $276 |
| Idaho | $2,656 | $221 |
| Illinois | $3,562 | $297 |
| Indiana | $2,670 | $223 |
| Kansas | $3,437 | $286 |
| Kentucky | $4,242 | $354 |
| Louisiana | $6,879 | $573 |
| Massachusetts | $3,478 | $290 |
| Maryland | $4,707 | $392 |
| Maine | $2,391 | $199 |
| Michigan | $5,958 | $496 |
| Minnesota | $3,561 | $297 |
| Missouri | $3,380 | $282 |
| Mississippi | $4,980 | $415 |
| Montana | $3,896 | $325 |
| North Carolina | $3,062 | $255 |
| North Dakota | $3,236 | $270 |
| Nebraska | $3,702 | $309 |
| New Hampshire | $2,669 | $222 |
| New Jersey | $4,628 | $386 |
| New Mexico | $3,681 | $307 |
| Nevada | $5,802 | $484 |
| New York | $4,115 | $343 |
| Ohio | $2,714 | $226 |
| Oklahoma | $3,935 | $328 |
| Oregon | $3,298 | $275 |
| Pennsylvania | $4,205 | $350 |
| Rhode Island | $4,193 | $349 |
| South Carolina | $4,161 | $347 |
| South Dakota | $3,902 | $325 |
| Tennessee | $3,516 | $293 |
| Texas | $4,146 | $345 |
| Utah | $3,172 | $264 |
| Virginia | $3,704 | $309 |
| Vermont | $2,707 | $226 |
| Washington | $3,068 | $256 |
| Wisconsin | $3,852 | $321 |
| West Virginia | $3,351 | $279 |
| Wyoming | $3,306 | $275 |
Tesla Model 3 insurance cost by driver age
Tesla Model 3 insurance for an 18-year-old driver ranges from $6,884 a year with American Family to $28,342 a year at Farmers. Farmers' rates are more than $10,000 higher than the next most expensive carrierAn insurance carrier is the company that provides your car insurance policy and pays claims., Auto Club Enterprises ($17,370). Astronomically high rates are a way carriers price out risks they'd rather not insure, such as teen drivers, without actually refusing to insure them.
For a 40-year-old driver, Travelers is the cheapest carrier at $2,563 a year. Auto Club Enterprises is the most expensive at $6,124 a year. While Farmers rates are still the second-highest, it's clear that the carrier doesn't try to price out adults.
USAA has the cheapest rates for all of the ages shown below, but coverage is only available to qualifying military members, veterans and their families.
| Age | Carrier | Average monthly rate | Average annual rate |
|---|---|---|---|
| 18 | American Family | $574 | $6,884 |
| 18 | Travelers | $661 | $7,929 |
| 18 | Auto-Owners | $777 | $9,321 |
| 18 | Nationwide | $819 | $9,834 |
| 18 | State Farm | $877 | $10,526 |
| 18 | Erie Insurance | $898 | $10,772 |
| 18 | Amica | $1,011 | $12,129 |
| 18 | GEICO | $1,029 | $12,350 |
| 18 | Auto Club Group (AAA) | $1,049 | $12,585 |
| 18 | Allstate | $1,139 | $13,665 |
| 18 | CSAA Insurance (AAA) | $1,277 | $15,323 |
| 18 | Mercury Insurance | $1,315 | $15,779 |
| 18 | Progressive | $1,336 | $16,035 |
| 18 | Auto Club Enterprises (AAA) | $1,447 | $17,370 |
| 18 | Farmers | $2,362 | $28,342 |
| 18 | USAA | $542 | $6,507 |
| 25 | Travelers | $256 | $3,074 |
| 25 | American Family | $273 | $3,282 |
| 25 | Nationwide | $300 | $3,596 |
| 25 | Progressive | $353 | $4,241 |
| 25 | Auto-Owners | $359 | $4,304 |
| 25 | State Farm | $384 | $4,603 |
| 25 | Amica | $391 | $4,696 |
| 25 | GEICO | $431 | $5,169 |
| 25 | Mercury Insurance | $466 | $5,597 |
| 25 | Auto Club Group (AAA) | $475 | $5,705 |
| 25 | Erie Insurance | $490 | $5,879 |
| 25 | CSAA Insurance (AAA) | $492 | $5,901 |
| 25 | Allstate | $496 | $5,956 |
| 25 | Farmers | $715 | $8,585 |
| 25 | Auto Club Enterprises (AAA) | $726 | $8,709 |
| 25 | USAA | $230 | $2,755 |
| 40 | Travelers | $214 | $2,563 |
| 40 | American Family | $222 | $2,667 |
| 40 | Nationwide | $235 | $2,815 |
| 40 | State Farm | $247 | $2,966 |
| 40 | Auto-Owners | $254 | $3,043 |
| 40 | GEICO | $309 | $3,706 |
| 40 | Amica | $311 | $3,737 |
| 40 | Auto Club Group (AAA) | $328 | $3,932 |
| 40 | Progressive | $332 | $3,979 |
| 40 | Mercury Insurance | $362 | $4,340 |
| 40 | Allstate | $369 | $4,425 |
| 40 | Erie Insurance | $372 | $4,458 |
| 40 | CSAA Insurance (AAA) | $427 | $5,122 |
| 40 | Farmers | $485 | $5,822 |
| 40 | Auto Club Enterprises (AAA) | $510 | $6,124 |
| 40 | USAA | $175 | $2,097 |
| 65 | Travelers | $204 | $2,445 |
| 65 | Nationwide | $211 | $2,528 |
| 65 | American Family | $216 | $2,588 |
| 65 | State Farm | $222 | $2,664 |
| 65 | Auto-Owners | $239 | $2,866 |
| 65 | Auto Club Group (AAA) | $282 | $3,388 |
| 65 | GEICO | $288 | $3,451 |
| 65 | Progressive | $290 | $3,476 |
| 65 | Amica | $310 | $3,719 |
| 65 | Mercury Insurance | $321 | $3,850 |
| 65 | Allstate | $349 | $4,191 |
| 65 | Erie Insurance | $361 | $4,332 |
| 65 | CSAA Insurance (AAA) | $393 | $4,715 |
| 65 | Farmers | $428 | $5,136 |
| 65 | Auto Club Enterprises (AAA) | $444 | $5,327 |
| 65 | USAA | $167 | $2,003 |
Tesla Model 3 insurance coverage options
Your Tesla Model 3 requires the same coverage as any other car. That includes:
- Liability. Covers injuries to other people and damage to their property; your state will determine the minimum amount you can carry
- Collision. Covers damage to your own vehicle caused by an accident on the road with another vehicle or object; required if you have a loan or lease
- Comprehensive. Covers damage to your vehicle caused by non-accident-related things like storms, vandalism and theft; required if you have a loan or lease
- Uninsured/underinsured motorist. Covers injuries and damage if you’re in an accident with someone who doesn’t have insurance; required by law in some states
- Personal injury protection. PIP covers your injuries regardless of who is at fault; required by law in some states
- Rental reimbursement. Covers the cost of a rental car while your Tesla is being repaired after a covered loss
- Roadside assistance. Covers towing and other roadside assistance needs, like jumping a dead battery
You may also want to consider gap insurance if you haven’t put down a large down payment on your car.
Tesla offers its own insurance program that provides all of the traditional coverages; it’s currently only available in 13 states: Arizona, California, Colorado, Florida, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia.
Factors that affect Tesla Model 3 insurance costs
Tesla insurance is impacted by the higher value of the vehicles and the high cost of parts and repairs.
“Tesla Insurance generally runs higher for insurance than other vehicles due to a variety of factors,” says Lauren McKenzie of A Plus Insurance in Liberty, South Carolina. “One being the value of the vehicle and cost [of] parts for Teslas is relatively expensive, making the cost of insurance more.”
Like most modern cars, Teslas are equipped with new technology, which is expensive to repair, and have even more advanced features that add to the cost.
“Tesla's advanced driver assistant features, such as autopilot, sensors and cameras, likely need calibration, repair or replacement after an accident, which adds to the cost,” McKenzie says.
It’s also affected by all of the standard factors, like:
- Location
- Driving record
- Age and gender
- Credit history
- Safety features and theft risk
“Lastly, some Tesla models show high theft rates and vandalism, which insurers also take into account when determining the premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods.,” McKenzie says.
Tesla Model 3 vs. other Tesla models
The Model 3 costs an average of $3,871 a year to insure, which is $1,591 less per year than the Model X, the most expensive model.
Take a look at the table below to see how the Model 3 compares to other Tesla models.
| Model | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Model 3 | $2,250 | $2,454 | $3,397 | $3,466 | $3,871 |
| Model S | $3,929 | $3,809 | $4,284 | $5,074 | $5,285 |
| Model X | $3,637 | $3,335 | $4,025 | $4,805 | $5,462 |
| Model Y | $2,210 | $2,377 | $3,115 | $3,529 | $3,836 |
| Cybertruck | N/A | N/A | N/A | $4,908 | $4,415 |
Why is Tesla Model 3 insurance so expensive?
Tesla Model 3 insurance is more expensive than the average for all models ($3,871 a year for the Model 3 vs. $3,037 for all vehicles) because of the high cost of parts and repairs associated with electric vehicles, and with Teslas in particular. Teslas require specialized repair skills, resulting in a more limited repair network. As a result, claims for Teslas are more costly.
Factors that affect the cost of insurance for a Tesla Model 3 include:
- Costly parts
- A limited repair network of specialists
- Advanced tech and sensors that are expensive to repair or replace
How to lower Tesla Model 3 Insurance cost
To lower the cost of your Tesla Model 3 insurance, shop around to compare rates, ask about discounts, and consider increasing your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. or bundling home and auto insurance.
- Shop around. Comparing rates from multiple companies is the best way to save on car insurance for any vehicle. “For Tesla owners, I would recommend getting quotes with at least 5, because it is harder to find affordable insurance than for a standard vehicle,” McKenzie says.
- Ask about all available discounts. This includes asking about green vehicle discounts and considering a usage-based program that rewards you for safe driving. Tesla’s insurance program is usage-based, and there is also a discount based on the use of self-driving features. “Look into all additional discounts the insurance provider offers, such as bundling, paying the premium in full, shopping early (advanced quote discount), or completing any safety driving courses,” McKenzie says.
- Increase your deductible. The higher your deductible, the cheaper your car insurance will be. Choose the highest deductible you can afford.
- Bundle your coverage. When you buy home and auto insurance together, you’ll get a discount on both. The Tesla Insurance program doesn’t offer bundling, unfortunately.
Methodology
We partnered with Quadrant Information Services to field average car insurance rates for all Tesla models in all 50 states and Washington, D.C.
Unless otherwise indicated, averages are based on our full coverage data set. This data set is based on:
- Bodily injury liability of $100,000 per person and $300,000 per incident
- Property damage liability of $100,000 per incident
- Comprehensive and collision deductibles of $500
- 40-year-old driver
- Good credit
- A clean driving record
- 12-mile commute, 10,000 annual mileage
Learn more about our data and methodology.
FAQ: Tesla Model 3 insurance
Is Tesla Model 3 insurance cheaper than other Teslas?
No. The Model 3 is the second-cheapest Tesla model to insure at $3,871 a year, slightly more expensive than the Model Y at $3,836 a year.
Is Tesla Model 3 insurance cheaper than gas vehicles?
On average, the Tesla Model 3 costs more to insure than gas vehicles, but rates vary by model. The average cost of insurance for a Model 3 is $3,871 a year, well above the average cost for a gas-powered Honda Accord LX at $2,513 a year. However, more expensive gas-powered vehicles will have higher rates than the Model 3; an Audi S8 averages $5,487 a year.
How much is Tesla Model 3 insurance a month?
The average monthly cost of a Tesla Model 3 with full coverage is $322, and $94 for a liability-only policy. Rates vary by carrier and personal factors like your driving record.
Is Tesla’s in-house insurance worth it for Model 3 owners?
The Tesla insurance program may be worthwhile for drivers who are willing to have their driving habits tracked and their rates set based on the results, since the program uses a rating system based on how you drive. Tesla telematics tracks things like hard braking and speed and uses that data to determine your rates. If you're a good driver who doesn't drive often, you may find Tesla's insurance program more affordable. However, because rates aren't determined in advance, it's difficult to compare usage-based insurance to traditional rates.
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