Fact Checked
Jan 14, 2026
Why Trust Us
Here’s a breakdown of how we reviewed and rated the top auto insurance providers
8,500
Data Points
Analyzed
12,500
Customers
Surveyed
Key Takeaways
- Our team gave Tesla Insurance 3.8 out of 5 stars due to its limited availability, poor industry reputation and relatively high premiums.
- The average cost to insure a 2023 Tesla model is $64 monthly for minimum or $271 for full coverage.
- Many Tesla owners choose to purchase third-party protection for their Teslas rather than opting for the company’s own coverage.
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How Much Does Tesla Insurance Cost?
Car insurance for Tesla vehicles costs an average of $64 for minimum or $271 for full coverage according to over 250,000 third-party Tesla insurance quotes collected from Quadrant Information Services in 2025. This makes Tesla auto insurance premiums approximately 3% pricier than for the average vehicle (in this case a 2023 Toyota Camry) for a full-coverage policy, but only 3% more expensive for a liability plan.
Note that full-coverage car insurance includes state-required minimum liability insurance along with comprehensive and collision insurance.
| Model | Average Minimum-Coverage Premium | Average Full-Coverage Premium |
|---|---|---|
| 2023 Tesla Model 3 | $61 | $240 |
| 2023 Tesla Model S | $63 | $300 |
| 2023 Tesla Model X | $66 | $307 |
| 2023 Tesla Model Y | $64 | $255 |
While Tesla’s market share has shown a decline over the past couple years, it is still the top-selling EV brand, according to Kelley Blue Book. It had 633,762 sales in 2024, making up 48.7% of the electric vehicle market share. Ford comes in second place at 7.5% of the market share in 2024.
Why Is Tesla Insurance So Expensive?
Tesla says it doesn’t use factors such as your age, gender, credit score and marital status when setting rates. This is different from most providers and may appeal to certain drivers. Instead, the company employs an unusual method, setting insurance rates based on the factors below:
- Tesla model: More affordable cars like the Tesla Model Y are often cheaper to insure than higher-end ones like the Model X.
- Location: Rates vary based on the state you live in, but they could also change within your state due to the presence and severity of risk factors.
- Miles driven: Those who put large numbers of miles on their vehicles will likely end up paying steeper rates for Tesla Insurance.
- Deductible: Drivers who choose a low insurance deductible will pay higher monthly rates for car insurance, but less up front for auto repairs.
- Chosen coverage: Those who select more extensive coverage or have high limits on their Tesla Insurance plans will likely be charged more. They’ll receive greater benefits if they have to file an auto claim, though, so it’s worth it for many Tesla drivers.
- Safety score: There are five main components to the safety score calculated by Tesla. These factors are the number of forward collision warnings you receive per 1,000 miles, how many times Tesla’s Autopilot system has to be disengaged and the number of times you exhibit hard braking, aggressive turning and unsafe following.
Monthly premiums could change with any coverage provider, but they’re particularly variable with Tesla Insurance.
Cheapest Car Insurance for a Tesla
Tesla Insurance isn’t your only option for car coverage, and some traditional insurance providers may offer more reasonable rates for coverage. Note that insurance rates from other companies will be impacted by your age, gender, credit score and other factors. For each model, we list the five cheapest nationally available providers that scored higher than 4 out of 5 stars in our 2025 review of the best car insurance companies.
Tesla Model 3 Insurance
Among the providers in our study, the average estimate for third-party insurance on a 2023 Tesla Model 3 is $61 for minimum or $240 for full coverage per month. Auto-Owners offers the cheapest full-coverage policy for the Tesla Model 3 at an average of $45 monthly for liability coverage.
| Provider | Average Min-Coverage Premium | Average Full-Coverage Premium |
|---|---|---|
| Auto-Owners | $45 | $207 |
| Geico | $51 | $253 |
| Travelers | $59 | $209 |
| Country Financial | $60 | $190 |
| Allstate | $63 | $301 |
Tesla Model X Insurance
The cheapest car insurance rates for a Tesla Model X start at $45 per month from Auto-Owners for minimum coverage to $256 monthly from Country Financial for full coverage.
| Provider | Average Min-Coverage Premium | Average Full-Coverage Premium |
|---|---|---|
| Auto-Owners | $45 | $303 |
| Geico | $56 | $351 |
| State Farm | $62 | $272 |
| Country Financial | $62 | $256 |
| Allstate | $65 | $291 |
Tesla Model Y Insurance
Auto-Owners offers the cheapest average rate estimates for the 2023 Model Y at $45 per month.
| Provider | Average Min-Coverage Premium | Average Full-Coverage Premium |
|---|---|---|
| Auto-Owners | $45 | $256 |
| Geico | $55 | $264 |
| Country Financial | $60 | $213 |
| State Farm | $60 | $249 |
| Travelers | $61 | $235 |
Tesla Model S Insurance
The cheapest car insurance for a Model S is offered by Auto-Owners at $45 monthly for minimum-coverage. Those with Model S looking for cheap full-coverage car insurance should get a quote from Country Financial, which averages $255 per month.
| Provider | Average Min-Coverage Premium | Average Full-Coverage Premium |
|---|---|---|
| Auto-Owners | $45 | $300 |
| Geico | $53 | $352 |
| State Farm | $59 | $317 |
| Country Financial | $62 | $255 |
| Travelers | $62 | $266 |
Tesla Insurance Cost by State
Discover what Tesla owners in your state are paying on average to insure their vehicles with a third-party insurer using the table below. All estimates are for full-coverage insurance and are based on the standardized profile of a 35-year-old driver with a clean driving record and good credit history.
| State | Average Min-Coverage Premium | Average Full-Coverage Premium |
|---|---|---|
| Alabama | $56 | $267 |
| Alaska | $40 | $261 |
| Arizona | $84 | $282 |
| Arkansas | $52 | $304 |
| California | $66 | $321 |
| Colorado | $53 | $313 |
| Connecticut | $109 | $280 |
| Delaware | $102 | $288 |
| District of Columbia | $114 | $304 |
| Florida | $117 | $291 |
| Georgia | $86 | $304 |
| Hawaii | $39 | $220 |
| Idaho | $38 | $223 |
| Illinois | $57 | $277 |
| Indiana | $46 | $257 |
| Iowa | $34 | $264 |
| Kansas | $48 | $273 |
| Kentucky | $60 | $295 |
| Louisiana | $122 | $301 |
| Maine | $39 | $237 |
| Maryland | $71 | $270 |
| Massachusetts | $53 | $274 |
| Michigan | $70 | $288 |
| Minnesota | $51 | $286 |
| Mississippi | $57 | $280 |
| Missouri | $65 | $290 |
| Montana | $43 | $268 |
| Nebraska | $50 | $265 |
| Nevada | $131 | $310 |
| New Hampshire | $43 | $234 |
| New Jersey | $108 | $289 |
| New Mexico | $50 | $292 |
| New York | $96 | $266 |
| North Carolina | $58 | $259 |
| North Dakota | $39 | $275 |
| Ohio | $41 | $235 |
| Oklahoma | $47 | $311 |
| Oregon | $76 | $265 |
| Pennsylvania | $41 | $283 |
| Rhode Island | $88 | $288 |
| South Carolina | $77 | $291 |
| South Dakota | $40 | $270 |
| Tennessee | $45 | $281 |
| Texas | $69 | $285 |
| Utah | $89 | $282 |
| Vermont | $33 | $212 |
| Virginia | $56 | $240 |
| Washington | $58 | $275 |
| West Virginia | $56 | $297 |
| Wisconsin | $42 | $256 |
| Wyoming | $26 | $227 |
Tesla Car Insurance Coverage
When it comes to coverage types, Tesla Insurance is a standard auto insurance provider. You can choose either a minimum-coverage plan that just meets your state’s requirements or opt for a wide range of insurance products to protect your Tesla.
Tesla Standard Coverage Types
Below is a list of standard options offered by most car insurers, including Tesla:
- Bodily injury liability insurance: The medical expenses and lost wages of other parties will be covered if they get injured in a car accident you caused
- Property damage liability coverage: Pays for damages to others’ vehicles and property after you cause an accident
- Personal injury protection (PIP): Covers medical bills and lost wages for you and members of your party, regardless of who caused the collision
- Medical payments (MedPay): Takes care of medical expenses but not lost wages for you and your party, no matter who’s found at fault for an accident
- Uninsured motorist coverage/underinsured motorist coverage: Pays for your injury and property claims if an at-fault driver lacks sufficient coverage to pay for damages
- Collision coverage: Covers damages to your own vehicle and personal property after a car accident.
- Comprehensive coverage: Covers vehicle damages from sources other than car accidents such as fires, flooding and instances of theft or vandalism.
Tesla Additional Coverage Options
Tesla Insurance offers a few additional coverages, including:
- Glass coverage: Covers the cost of repairing or replacing the glass windows and windshields in your Tesla.
- Roadside assistance: Takes care of emergency roadside needs such as towing, fuel delivery and flat-tire help on top of standard insurance services.
- Rental car reimbursement: Pays for a rental car if your Tesla is involved in an accident or heads to the repair shop.
- Gap insurance: Covers the difference between what you owe on a vehicle and what it’s worth in the event of a total loss.
Availability may vary by state.
Tesla Insurance Discounts
Depending on your state, you may be eligible for accident-free, anti-theft device, good driver, defensive driving course and multi-car discounts with Tesla Insurance.
It’s always worth reaching out to an agent to double check that there aren’t other savings when you’re shopping around for auto insurance. Many providers give car insurance discounts for clean driving histories and for installing certain safety features in your vehicle.
Tesla Insurance Reviews
The MarketWatch Guides team gave Tesla Insurance sold by the automaker itself 3.8 out of 5 stars due to its lack of nationwide availability, poor customer experience ratings and issues with its reputation. We’ll discuss the details of these poor reviews on the Better Business Bureau later on.
Overall, Tesla Insurance may be worth a look for owners who’ve enjoyed services from the company. For most other drivers, however, it’s unlikely to be their best car insurance option.
| Overall Rating | 3.8 |
|---|---|
| Cost and Discounts | 3.9 |
| Coverage | 4 |
| Industry Standing | 3.6 |
| Availability | 3.4 |
| Customer Experience | 3.8 |
Tesla Auto Insurance Pros and Cons
Pros
Telematics insurance program rewards drivers for good habits
Can be cheaper for some Tesla owners
Integrates well with the Tesla app
Cons
Only available in 12 states
Expensive for non-Tesla vehicles
Reports of poor customer service
Since Tesla Insurance has only been around since 2019, it’s difficult to find customer reviews. Tesla is a large company, so it’s possible to look at overall reviews to understand how it treats its customers.
Where Is Tesla Insurance Available?
Tesla Insurance is one of the market’s newest providers, with Tesla CEO Elon Musk only announcing the program in 2019. Availability is currently limited, as drivers in only 12 states can pick up coverage. Here’s where Tesla Insurance is available as of June 2025:
Tesla offers car insurance in California but doesn’t base the rates on driver performance in the Safety Score Beta program.
Tesla Insurance Customer Reviews
The Better Business Bureau, which scores companies on how they respond to customer complaints, doesn’t rate Tesla and has withheld accreditation. Customers on the BBB site give Tesla 1 out of 5 stars, and the company has a high number of complaints, even considering its size.
Tesla Car Insurance: FAQ
Insurance on a Tesla tends to be more expensive than for most other vehicles. One reason is because the company’s models are pricey to repair or replace.
Tesla could be a good car insurance choice for some people. The company claims to offer competitive rates for its own cars, which can be true for some drivers. Fans of the brand’s software and tech-based approach will likely appreciate their insurance plan being integrated into the Tesla app.
Currently, auto insurance tends to be cheaper for gas-powered vehicles than for electric cars. This is because components such as the battery and the wall charger are still rare compared to the parts needed to fix gas-powered vehicles.
While Tesla Insurance is designed with Tesla vehicles in mind, owners can insure their non-Tesla vehicles by adding those cars to existing plans.
Our Methodology:
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800+ hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
Studies and Ratings We Cite
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Our provider reviews cite several key industry studies and ratings, including:
- J.D. Power 2024 U.S. Insurance Shopping Study
- J.D. Power 2024 U.S. Auto Claims Satisfaction Study
- NAIC Complaint Index
The annual J.D. Power U.S. Insurance Shopping Study measures customer satisfaction and purchase experience with auto insurance providers based on five categories: brand, price, distribution channel, quote process and policy offerings. The study average score is 676/1,000.
The annual J.D. Power U.S. Auto Claims Study rates the claims experience customers have with different providers based on eight categories: trust, fairness of settlement, time to settle a claim, people, communication, ease of resolving a claim, ease of starting a claim and digital channels. Car insurance providers are assessed at the national level. The study average score is 697/1,000.
The National Association of Insurance Commissioners Complaint Index is a representation of the number of complaints auto insurance providers receive relative to the average number of complaints for the industry based on their size. A score of 1 represents the average number of complaints for the industry.
Learn more about our methodology and editorial guidelines.
*Data accurate at time of publication.
