One of the concerns we hear from certain reviewers/skeptics on This is: sure, electricity is less expensive than gas, but what about insurance? Some people believe that this problem is simply a bouncer in the closet. We’ve seen a lot of comments on social media citing ridiculous reasons why Tesla car insurance is so expensive.


Let’s be clear here: Teslas don’t catch fire and they don’t short out in the rain.

Tesla Insurance Basics

According to our study, the average annual cost of auto insurance for a Tesla is $4,554. The cost of your policy is determined by the model and trim you select. The other factors include your location, driving history, and the amount of coverage you want. Contact auto insurance companies that sell Tesla insurance for exact rates.

Nonetheless, a Tesla could be one of the most profitable cars available right now. It is completely powered by electricity, saving you hundreds to thousands of dollars in gas costs. It is also one of the safest cars. A dozen airbags, bumper video sensors and other safety features make Teslas the safest cars in the world. You’d think Tesla car insurance would be affordable due to high safety and quality ratings. However, Tesla’s insurance premium is higher than usual. Fortunately, these websites exist to save money on car insurance.

The following are some of the reasons Tesla insurance is more expensive than the average car insurance:

Tesla car insurance price

Tesla insurance costs vary by model, but owners should consider the influence of different trim levels on auto insurance premiums when selecting their car. Not all insurers offer different prices depending on the level of equipment. However, the difference in car cost, acceleration, and other vehicle features translate to different prices for car insurance companies that take this into account.

Insurance for the Tesla Model 3, which starts at $39,990, is less expensive than insurance for the Tesla Model S, which starts at $85,000.

Car insurance companies care about the value of a car. If you have the following coverages: Comprehensive and Collision (which is required for any new car), your insurer may have to pay the full value of the car if it is determined to be a total loss. Because insurance would have to pay more if you totaled $40,000 or even $85,000 on your car, you will pay more for these protective coverages than someone with a car worth $25,000.

Repairing Tesla is more expensive

Fewer repair shops mean those who service Teslas can demand higher prices. The technology is complicated. Repairs also require the use of specialized tools. Tesla technology bells and whistles can help with safety. But that technology comes at a price!

Due to their high repair costs, Teslas are more expensive to insure than many other luxury cars, driving up the cost of accident coverage.

Sensitive areas of a Tesla model

Someone touching your normal car’s bumper might be a minor nuisance, but if it happens to your Tesla, it could be a major problem. If someone breaks your bumper, the camera sensors in the bumper can be destroyed. Even if it’s just a minor fender accident, calibration may require the device to work properly. As a result, colliding with a sign can result in a repair charge of nearly $7.00.

Tesla construction with a single body

Tesla is pursuing a unibody architecture, which involves larger metal panels to improve stability and security. Because insurance companies are aware of the high cost of repairs, increased effort and oversized items can drive up insurance prices.


The car you drive and the type of insurance you purchase are two of the many qualifying elements used by auto insurance companies. Others include your age, driving experience, driving history, and claims history. However, you live in the critical component that is used as a base quote to build and adjust up or down depending on your riding profile.

Tesla insurance is more expensive in some states than others. This is because the state and city you live in affect how much you pay for insurance. Insurance companies consider the cost and frequency of claims, as well as natural disasters in your area, among other things, when determining your rate.

Is Tesla car insurance a deal breaker due to higher insurance costs? Probably not. Surprisingly, Tesla’s newest model, the Model Y, is the most affordable to insure. While it’s not the cheapest Tesla Model, it’s a bigger crossover than the Model 3. And we found that this type of car has the cheapest insurance rates. Based on our analysis, the Model X, Tesla’s high-end SUV, is the most expensive Tesla to insure.