Cheap Tesla Auto Insurance in 2024

Tesla cars have exploded in popularity over the last few years. However, there’s one question that frequently appears online: how much does it cost to insure a Tesla?

The so-called “car of the future” is certainly one of the most expensive cars to insure. Today, we’re going to explain how much it costs to insure a Tesla and how to find affordable Tesla auto insurance quotes.

Enter your ZIP code to get started comparing rates from more than one Tesla insurance company. Use our free tool to compare average rates.

Tesla Model Types

Tesla has released three main vehicles so far. The newest model, the Model 3, is priced at $35,000 USD, making it the cheapest Tesla released to date.

The Model S, meanwhile, is priced at around $70,000 (although the model with the most inclusive trim will cost about $135,000), while the Model X costs between $86,000 and $136,000, depending on your trim.

Keep in mind that the more you pay for your Tesla, the better its battery life will be, and the faster your car will go. Buying the “most inclusive trim” version isn’t just about aesthetics.

We’ve seen a growing number of requests for Tesla Model 3 insurance costs. After all, a $35,000 car is within the budget of an average middle-class family.

However, cautious vehicle buyers are naturally concerned about average car insurance costs. Affordable Tesla model 3 insurance quotes can be hard to come by, but it’s not impossible.

Getting Insurance for a Tesla

Does insuring a Tesla cost more than insuring a car with a similar price tag? Here are some things to consider.

Insurance for Expensive Cars

We don’t need to explain much about this. A $30,000 car is almost always going to cost more to insure than a $20,000 car. If you’re upgrading to a Tesla from a cheaper car, you can expect a significant bump in your insurance policy cost.

Repair costs are more since every part of the vehicle is more expensive to replace. This affects both Tesla Model X insurance costs and Tesla Model 3 insurance costs.

Insurance for Electric Cars

Electric cars cost more to insure than their gas counterparts, all things being equal. Geico reports that it’s about 1.23 times more expensive to insure an electric vehicle compared to a gas vehicle. However, State Farm only charges about 1.07 times more to insure an electric vehicle.

Insurance for Luxury Cars

Luxury cars tend to get in more collisions than ordinary vehicles. In fact, five of the ten worst cars for collision insurance are categorized as luxury vehicles (the other five are sports cars). Tesla CEO Elon Musk has famously said, “We don’t make slow cars.”

Even though the Model 3 is priced at a more affordable $35,000, it will still be insured as a luxury car.

Of course, you’ll need more than just collision coverage. For a Tesla, you’ll need to find affordable comprehensive auto insurance coverage and additional coverage options. Many companies offer auto insurance discounts to drivers to help offset costs.

Ultimately, upgrading your coverage policy to cover a luxury car might not be quite as expensive as you think. If the value of the vehicle is equal, then a luxury car will cost about 6% more to insure than a non-luxury car (assuming the vehicle’s value is between $30,000 and $35,000).

And it’s helpful to remember that while electric vehicle auto insurance — even from a manufacturer like Tesla — may be higher than for a gas-powered vehicle, EV owners can save in numerous other ways.

The best cities to own an electric vehicle have a high number of government incentives, good charging station infrastructure, and a low electricity cost that can actually make owning an EV cheaper, regardless of the auto insurance cost.

Even if the EV model you drive is an expensive Tesla, you will likely save more money in the long run compared to a similarly-priced gas-powered car.

Tesla Insurance Quotes

Right now, in New York, you can insure the $70,000 version of the Tesla Model S with Geico for approximately $1,750 per year.

We don’t have specific figures for Tesla 3 insurance in New York. However, the Huffington Post researched insurance quotes for the Kia Soul EV, an electric car that sells for $32,000. Insurance was approximately $1,446 per year in New York. Obviously, the Kia Soul EV isn’t a luxury car.

Based on the information we know above about luxury cars, the Model 3 should cost about 6% more to insure due to its luxury car status. That puts the Model 3’s coverage at a rate of around $1,500 to $1,600 per year in New York.

What about the more expensive Tesla models? Nerd Wallet did a comparison between Tesla insurance providers and found that the Tesla S60 typically had policies priced between $1,900 and $2,300 per year.

States with the highest Tesla ownership – Illinois and California – had the lowest average insurance rates for Tesla vehicles.

Read more: Affordable Kia Auto Insurance Quotes

Discover Auto Insurance Rates for Your Tesla Model

Find Affordable Tesla Auto Insurance Today

The Tesla Model 3 is known for its affordable price tag. At $35,000, the Model 3 is within the reach of many average middle-class drivers’ budgets. Based on the information above, the Tesla Model 3 insurance cost is still expensive – mostly because the Model 3 is classified as a luxury vehicle.

However, the Tesla Model 3 insurance cost difference is not quite as significant as you think – reports suggest it’s only around a 6% difference compared to other electric vehicles.

Compared to a standard gas vehicle in that price range, however, you’re going to pay anywhere from 15% to 30% more to insure a Tesla. Enter your ZIP code in our free tool to compare annual rates from multiple insurers.