- How much does Tesla Model Y insurance cost?
- Why is Tesla Model Y insurance so expensive?
- Tesla Model Y insurance cost by company
- Tesla Model Y insurance cost by state
- Tesla Model Y insurance cost by driver age
- Tesla Model Y insurance coverage options
- What factors affect Tesla Model Y insurance cost?
- Tesla Model Y vs. other Tesla models
- How can you lower Tesla Model Y insurance rates?
- FAQ: Tesla Model Y insurance
How much does Tesla Model Y insurance cost?
The average annual cost of Tesla Model Y car insurance with full coverage is $3,836, while liability-only costs an average of $1,139 a year.
The table below compares costs between a Model Y and a Model 3, as well as to our base sample vehicle, a Honda Accord LX and the national average for all vehicles, with sample coverage limits of $100,000 of bodily injury per person, $300,000 for bodily injury per accident and $100,000 for property damage with $500 deductibles.
| Vehicle make and model | Full coverage (100/300/100*, $500 deductibles) |
|---|---|
| Tesla Model Y | $3,836 |
| Tesla Model 3 | $3,871 |
| Honda Accord LX | $2,513 |
| All vehicles | $3,037 |
*$100,000 bodily per person, $300,000 total bodily injury per accident, $100,000 property damage
Why is Tesla Model Y insurance so expensive?
The Tesla Model Y is more expensive to insure than average due to its higher purchase price and repair costs. Electric vehicles require specialized parts and labor, which drive up repair costs. The advanced technology in an electric vehicle also contributes to those costs.
However, among Tesla vehicles, the Model Y is the most affordable to insure, and cheaper coverage can be found by shopping around.
Tesla Model Y insurance cost by company
American Family has the best price for the Model Y Long Range at $2,233 per year, and the best price for the Model Y Performance at $2,349 per year. You'll pay a little less for a Performance model at USAA if you are an eligible military member, veteran or qualifying family member.
Farmers is the most expensive choice for both the Long Range and Performance models.
These are just average costs; your insurance rate will depend on factors like your driving record, your ZIP code and even your credit score.
| Model | Model type | Company | Average annual premium | Monthly premium |
|---|---|---|---|---|
| Model Y | Long Range | Allstate | $3,971 | $331 |
| Model Y | Long Range | American Family | $2,233 | $186 |
| Model Y | Long Range | Amica | $3,249 | $271 |
| Model Y | Long Range | Auto Club Enterprises (AAA) | $6,482 | $540 |
| Model Y | Long Range | Auto Club Group (AAA) | $3,798 | $317 |
| Model Y | Long Range | Auto-Owners | $3,248 | $271 |
| Model Y | Long Range | CSAA Insurance (AAA) | $5,594 | $466 |
| Model Y | Long Range | Erie Insurance | $4,534 | $378 |
| Model Y | Long Range | Farmers | $5,331 | $444 |
| Model Y | Long Range | GEICO | $3,790 | $316 |
| Model Y | Long Range | Mercury Insurance | $4,329 | $361 |
| Model Y | Long Range | Nationwide | $3,044 | $254 |
| Model Y | Long Range | Progressive | $4,173 | $348 |
| Model Y | Long Range | State Farm | $3,051 | $254 |
| Model Y | Long Range | Travelers | $2,748 | $229 |
| Model Y | Long Range | USAA* | $2,256 | $188 |
| Model Y | Performance | Allstate | $4,537 | $378 |
| Model Y | Performance | American Family | $2,349 | $196 |
| Model Y | Performance | Amica | $3,413 | $284 |
| Model Y | Performance | Auto Club Enterprises (AAA) | $6,705 | $559 |
| Model Y | Performance | Auto Club Group (AAA) | $3,965 | $330 |
| Model Y | Performance | Auto-Owners | $3,255 | $271 |
| Model Y | Performance | CSAA Insurance (AAA) | $6,331 | $528 |
| Model Y | Performance | Erie Insurance | $4,577 | $381 |
| Model Y | Performance | Farmers | $5,440 | $453 |
| Model Y | Performance | GEICO | $3,483 | $290 |
| Model Y | Performance | Mercury Insurance | $4,329 | $361 |
| Model Y | Performance | Nationwide | $3,224 | $269 |
| Model Y | Performance | Progressive | $4,435 | $370 |
| Model Y | Performance | State Farm | $3,308 | $276 |
| Model Y | Performance | Travelers | $2,891 | $241 |
| Model Y | Performance | USAA* | $2,256 | $188 |
*USAA is only available to military members, veterans and their families.
Tesla Model Y insurance cost by state
Louisiana is the most expensive state for car insurance on a Tesla Model Y, at $6,247 annually, while Hawaii is the cheapest at $1,992 annually.
These rates reflect the overall cost of insurance by state; Louisiana has high rates in general, while car insurance is affordable in Hawaii regardless of the car you own. Location is a major factor in car insurance rates. Compare rates for a Model Y by state below.
| State | Average annual premium | Average monthly premium |
|---|---|---|
| Alaska | $3,256 | $271 |
| Alabama | $3,480 | $290 |
| Arkansas | $4,227 | $352 |
| Arizona | $3,736 | $311 |
| California | $4,728 | $394 |
| Colorado | $4,000 | $333 |
| Connecticut | $4,660 | $388 |
| Washington, D.C. | $5,255 | $438 |
| Delaware | $3,907 | $326 |
| Florida | $4,058 | $338 |
| Georgia | $3,672 | $306 |
| Hawaii | $1,992 | $166 |
| Iowa | $3,418 | $285 |
| Idaho | $2,395 | $200 |
| Illinois | $3,568 | $297 |
| Indiana | $2,541 | $212 |
| Kansas | $3,791 | $316 |
| Kentucky | $4,472 | $373 |
| Louisiana | $6,247 | $521 |
| Massachusetts | $3,098 | $258 |
| Maryland | $4,545 | $379 |
| Maine | $2,373 | $198 |
| Michigan | $5,401 | $450 |
| Minnesota | $3,575 | $298 |
| Missouri | $3,683 | $307 |
| Mississippi | $4,901 | $408 |
| Montana | $3,747 | $312 |
| North Carolina | $2,915 | $243 |
| North Dakota | $3,153 | $263 |
| Nebraska | $3,907 | $326 |
| New Hampshire | $2,647 | $221 |
| New Jersey | $4,487 | $374 |
| New Mexico | $3,590 | $299 |
| Nevada | $5,729 | $477 |
| New York | $4,024 | $335 |
| Ohio | $2,729 | $227 |
| Oklahoma | $3,920 | $327 |
| Oregon | $3,036 | $253 |
| Pennsylvania | $4,140 | $345 |
| Rhode Island | $4,111 | $343 |
| South Carolina | $4,120 | $343 |
| South Dakota | $4,108 | $342 |
| Tennessee | $3,671 | $306 |
| Texas | $4,169 | $347 |
| Utah | $2,882 | $240 |
| Virginia | $3,515 | $293 |
| Vermont | $2,536 | $211 |
| Washington | $2,958 | $247 |
| Wisconsin | $3,985 | $332 |
| West Virginia | $3,379 | $282 |
| Wyoming | $3,072 | $256 |
Tesla Model Y insurance cost by driver age
For an 18-year-old driver with full coverage on a Model Y, rates average $5,853 a year with American Family and up to a whopping $25,124 with Farmers. Teens are the most expensive age group to insure for any vehicle due to their risky driving behaviors, such as distracted driving and speeding.
At age 40, the average annual rate is lowest with American Family at $2,272 and highest with Auto Club Enterprises at $6,556.
The table below shows the average cost of Tesla Model Y insurance by age and carrier.
| Model | Age | Company | Average monthly rate | Average annual rate |
|---|---|---|---|---|
| Model Y | 18 | American Family | $488 | $5,853 |
| Model Y | 18 | Travelers | $705 | $8,456 |
| Model Y | 18 | Auto-Owners | $825 | $9,895 |
| Model Y | 18 | Amica | $878 | $10,535 |
| Model Y | 18 | Nationwide | $895 | $10,738 |
| Model Y | 18 | Erie Insurance | $918 | $11,014 |
| Model Y | 18 | State Farm | $921 | $11,058 |
| Model Y | 18 | GEICO | $1,018 | $12,213 |
| Model Y | 18 | Allstate | $1,061 | $12,737 |
| Model Y | 18 | Auto Club Group (AAA) | $1,063 | $12,761 |
| Model Y | 18 | Mercury Insurance | $1,285 | $15,425 |
| Model Y | 18 | Progressive | $1,379 | $16,553 |
| Model Y | 18 | CSAA Insurance (AAA) | $1,452 | $17,427 |
| Model Y | 18 | Auto Club Enterprises (AAA) | $1,563 | $18,757 |
| Model Y | 18 | Farmers | $2,094 | $25,124 |
| Model Y | 18 | USAA | $588 | $7,052 |
| Model Y | 25 | American Family | $233 | $2,798 |
| Model Y | 25 | Travelers | $280 | $3,356 |
| Model Y | 25 | Nationwide | $329 | $3,946 |
| Model Y | 25 | Amica | $346 | $4,147 |
| Model Y | 25 | Progressive | $374 | $4,485 |
| Model Y | 25 | Auto-Owners | $383 | $4,594 |
| Model Y | 25 | State Farm | $404 | $4,852 |
| Model Y | 25 | GEICO | $429 | $5,143 |
| Model Y | 25 | Allstate | $465 | $5,574 |
| Model Y | 25 | Mercury Insurance | $466 | $5,595 |
| Model Y | 25 | Auto Club Group (AAA) | $471 | $5,652 |
| Model Y | 25 | Erie Insurance | $500 | $6,000 |
| Model Y | 25 | CSAA Insurance (AAA) | $577 | $6,924 |
| Model Y | 25 | Farmers | $646 | $7,747 |
| Model Y | 25 | Auto Club Enterprises (AAA) | $780 | $9,355 |
| Model Y | 25 | USAA | $247 | $2,969 |
| Model Y | 40 | American Family | $189 | $2,272 |
| Model Y | 40 | Travelers | $233 | $2,796 |
| Model Y | 40 | Nationwide | $259 | $3,104 |
| Model Y | 40 | State Farm | $261 | $3,137 |
| Model Y | 40 | Auto-Owners | $271 | $3,251 |
| Model Y | 40 | Amica | $275 | $3,304 |
| Model Y | 40 | GEICO | $307 | $3,687 |
| Model Y | 40 | Auto Club Group (AAA) | $321 | $3,854 |
| Model Y | 40 | Allstate | $347 | $4,160 |
| Model Y | 40 | Progressive | $355 | $4,260 |
| Model Y | 40 | Mercury Insurance | $361 | $4,329 |
| Model Y | 40 | Erie Insurance | $379 | $4,548 |
| Model Y | 40 | Farmers | $447 | $5,367 |
| Model Y | 40 | CSAA Insurance (AAA) | $487 | $5,840 |
| Model Y | 40 | Auto Club Enterprises (AAA) | $546 | $6,556 |
| Model Y | 40 | USAA | $188 | $2,256 |
| Model Y | 65 | American Family | $185 | $2,217 |
| Model Y | 65 | Travelers | $219 | $2,628 |
| Model Y | 65 | Nationwide | $231 | $2,770 |
| Model Y | 65 | State Farm | $234 | $2,812 |
| Model Y | 65 | Auto-Owners | $254 | $3,044 |
| Model Y | 65 | Amica | $274 | $3,289 |
| Model Y | 65 | Auto Club Group (AAA) | $280 | $3,359 |
| Model Y | 65 | GEICO | $285 | $3,424 |
| Model Y | 65 | Progressive | $310 | $3,714 |
| Model Y | 65 | Mercury Insurance | $319 | $3,825 |
| Model Y | 65 | Allstate | $327 | $3,927 |
| Model Y | 65 | Erie Insurance | $369 | $4,422 |
| Model Y | 65 | Farmers | $392 | $4,704 |
| Model Y | 65 | CSAA Insurance (AAA) | $434 | $5,212 |
| Model Y | 65 | Auto Club Enterprises (AAA) | $476 | $5,711 |
| Model Y | 65 | USAA | $180 | $2,161 |
Tesla Model Y insurance coverage options
Your Tesla Model Y 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’ve made a low down payment and are at risk of being upside down on the loan.
Tesla offers its own insurance program, which provides all traditional coverages; it’s currently only available in 13 states: Arizona, California, Colorado, Florida, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia.
What factors affect Tesla Model Y insurance cost?
Tesla insurance is impacted by the higher value of the vehicles and the high cost of parts and repairs.
Teslas are equipped with new technology and advanced features that are expensive to repair.
“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,” says Lauren McKenzie of A Plus Insurance in Liberty, South Carolina.
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 Y vs. other Tesla models
The Model Y is the cheapest Tesla to insure, with the Model 3 a close second at $3,871 a year. The Model X is the most expensive to insure, at $5,462.
Compare rates for Tesla models below, as well as cost trends over the past five years.
| 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 |
How can you lower Tesla Model Y insurance rates?
To lower the cost of your Tesla Model Y insurance, try these tactics:
- Shop around. Comparing rates from multiple companies is the best way to save on car insurance for any vehicle, but a Tesla may take more effort. “For Tesla owners, I would recommend getting quotes with at least five, 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 offers a discount based on 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. Unfortunately, the Tesla Insurance program doesn’t offer bundling.
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 ourdata and methodology.
FAQ: Tesla Model Y insurance
Is Tesla Model Y insurance cheaper than that of other Teslas?
Yes. According to Insurance.com data, the Model Y is the cheapest Tesla to insure, with an average annual cost of $3,836. The Model 3 is a close second at $3,871 a year.
How much is Tesla Model Y insurance a month?
The average monthly cost of Tesla Model Y car insurance is $320 for full coverage (100/300/100 with $500 deductibles) and $95 for liability-only (100/300/100), though rates vary by company.
Is Tesla’s in-house insurance worth it for Model Y owners?
Tesla's insurance program may be worthwhile for drivers who are ok with having their driving monitored and rates dependent on their driving activities. Since Tesla uses a usage-based rating system, there’s no way to know how much you will pay compared to other companies. You may be able to get the best deal with a traditional insurer.
Does Tesla Autopilot reduce insurance costs?
Autopilot does not reduce insurance costs, although certain autonomous features that help to prevent accidents, like automatic braking and lane departure assist, can earn discounts with some insurance companies. Autonomous driving is still new, and insurance companies have yet to fully calculate the risks and benefits to apply the data to rate calculations.
How much is insurance for a new Tesla Model Y?
The average cost of insurance for a 2025 Tesla Model Y is $3,836 a year, but rates vary by insurance company.
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