Getting insurance on Tesla is really important considering how expensive they are this will help protect you and your vehicle from any unforeseen casualty. Though insurance on a Tesla can be very expensive due to the higher price of parts and repairs.
Tesla is owned by billionaire Elon Musk, a United States-based businessman and lover of science. Tesla designs and manufactures electric vehicles, battery energy storage from home to grid scale, solar panels and solar roof tiles, and related products and services.
Teslas are known for producing top-notch electric cars It runs fully on electric power, saving you hundreds to thousands of dollars on gas. This is the more reason why insurance on Tesla is high.
In this post, we shall be looking at how to get cheap insurance on a Tesla. The price is dependent on the Tesla model and trims you choose, your location and driving history, and the amount of coverage you choose.
What is Tesla Insurance?
Tesla insurance is the insurance you get for your Tesla cars, this is the same process as insuring other vehicles. Tesla launched its own insurance option in 2019 in other to ease the financial burden Tesla owners faced when insuring their vehicles with other insurance companies.
Also Read: Electric Cars And The TESLAS
How Tesla Insurance Works
Tesla uses specific features within the vehicle to evaluate your premium based on your actual driving. You will make monthly payments based on your driving behavior instead of traditional factors like credit, age, gender, claim history, and driving records used by other insurance providers.
Tesla Insurance: Rates by model
While the average cost to insure a new Tesla vehicle is $3,515 per year, the price varies significantly by model. The cheapest Tesla to insure is the new Model Y, which has a typical insurance rate of just $2,832 per year.
Model 3
The Model 3 sedan is Tesla’s least expensive model to buy, currently starting at $48,190 as of March 2022 including a $1,200 destination fee. It has a strong range and sleek styling. It insurance is still fairly expensive, at $3,386 per year for the newest base model. This car has an estimated driving range of 267 miles, up to 5 miles.
| Model Year | Variant | Average cost |
|---|---|---|
| 2022 | Standard Plus | $3,386 |
| 2022 | Long Range | $3,608 |
| 2022 | Performance | $3,752 |
| 2021 | Standard Plus | $3,328 |
| 2020 | Standard Range Pl | $3,199 |
| 2019 | ————————— | $3,164 |
| 2018 | Long Range | $3,168 |
| 2017 | ————————— | $3,076 |
Model Y
The Model Y’s dual-motor AWD Long Range trim starts at a base price of $62,990 and can jump to $83,990 with all the fixings. It is the cheapest Tesla to insure, with an average rate of just $3,057 per year for the base model. That’s 13% less than the average rate across all new Teslas
| Model Year | Variant | Average cost |
|---|---|---|
| 2022 | Long Range | $3,057 |
| 2022 | Performance | $3,348 |
| 2021 | Standard Plus | $2,832 |
| 2020 | Long Range | $3,030 |
Model S
The Tesla Model S is more expensive than the Model 3. The Long Range variant, which travels an estimated 405 miles on a full charge, costs $106,190, up slightly from its most recent price of $101,190. Its insurance plan is $4,956 per year
| Model Year | Variant | Average cost |
|---|---|---|
| 2022 | Long Range | $4,956 |
| 2022 | Plaid | $4,863 |
| 2021 | Long Range | $4,859 |
| 2020 | Long Range | $4,742 |
| 2019 | —— | $4,592 |
| 2018 | 60 | $4,166 |
| 2017 | 60 | $4,057 |
Model X
Known for its “Falcon Wing” doors, the Model X SUV is the most expensive Tesla currently available. With an estimated range of 332 miles, the Tesla Model X Long Range goes for $122,190. Tesla’s high-end full-size SUV costs an average of $4,275 per year to insure. That’s $759 more than the typical price across all models.
| Model Year | Variant | Average cost |
|---|---|---|
| 2022 | Long Range | $4,275 |
| 2022 | Plaid | $4,275 |
| 2021 | —— | $3,810 |
| 2020 | Long Range | $4,045 |
| 2019 | —— | $3,874 |
| 2018 | 75D | $3,651 |
| 2017 | 90D | $3,812 |
The Average Annual Cost of Tesla Car Insurance
The average cost to insure a new Tesla vehicle is $3,515 per year. Although these prices vary significantly by year and model. The cheapest Tesla to insure is the new Model Y which has a typical insurance rate of just $2,832 per year.
Where is Tesla insurance available?
- Arizona
- California*
- Colorado
- Illinois
- Nevada
- Ohio
- Oregon
- Texas
- Virginia
Why insuring a Tesla is so Expensive
The answer is simple the higher your Tesla car the more expensive it will be to insure. This is because Tesla parts and repairs are really expensive, your insurance will cover the cost if maybe your car is stolen or if there was an accident, it’ll cost your insurer more to replace it than a less-expensive vehicle.
- Teslas can only be repaired at Tesla-approved body repair shops. The training and equipment to become qualified mean significantly higher costs.
- Electric cars are more expensive to repair and insure because they feature more expensive equipment and technology.
- Teslas have a higher battery range than other EVs, so they tend to rack up more miles.
- The Model S aluminum frame is more expensive and difficult to repair than a steel frame.
What does Tesla insurance cover?
- Autonomous vehicle owner coverage: Its most unique coverage, autonomous vehicle coverage is not available through other car insurers. Tesla Insurance will provide liability coverage for property damage or bodily injury if your car gets in an accident while operating in autonomous vehicle mode.
- Wall charger coverage: You’ll have up to $3,000 available for loss or damage of the power charger as long as the damage isn’t from a manufacturer defect or negligence, according to Insurance.com’s 2021 report.
- Electronic key replacement: This covers up to $500 per loss of your Tesla electronic keys. Coverage is limited to two claims per policy period.
- Auto loan/lease gap insurance: The coverage will pay for the difference between the vehicle value versus what’s owed in car payments if your Tesla is a total loss after an accident.
- Cyber identity fraud coverage: A Tesla is one of the most technologically advanced vehicles. It’s connected to a cyber network that may potentially expose you to some risk. This coverage pays up to $15,000 in digital identity fraud losses per occurrence and up to $30,000 per period if your information is compromised, according to Insurance.com’s report.
How much is a Tesla?
Well, this depends on the model you are going for, but as you may know, Tesla cars can be very expensive but there’s nothing money can’t buy LOL. There’s a huge difference in price between the cheapest Tesla and the most expensive Tesla. The cheapest on our list are:
- The Model 3: Costs about $48,190 as of March 2022. This car has an estimated driving range of 267 miles, up to 5 miles you can’t beat that
- Tesla Model S: With Model S prices starting at over $90,000, buyers would reasonably expect a certain amount of luxury inside the car
- Tesla Model Y: Tesla’s compact SUV, starts at $67,190, up from $64,190 for the base Long Range model that’s capable of going an EPA-estimated 330 miles on a full charge of its battery pack.
- Tesla Model X: Known for its “Falcon Wing” doors, the Model X SUV is the most expensive Tesla currently available. With an estimated range of 332 miles, the Tesla Model X Long Range goes for $122,190, up from its most recent MSRP of $116,190 and over ten grand pricier than it was earlier this year
What company has the cheapest Tesla car insurance?
Depending on your Tesla model, the cheapest insurance provider will differ. We have listed the top cheapest companies to insure your Tesla.
- Progressive – $2363
- AAA Norcal – $2736
- Tesla Insurance – $3315
- State Farm – $3995
- GEICO – $4181
- Farmers – $4463
- Allstate – $5314
- AAA Socal – $6862
- Mercury – $7625
Why is Tesla so Expensive
Tesla cars are very expensive because they are made with the best-sophisticated materials. Its auto-drive is top-notch and has amazing features. Inside, the interior is reminiscent of a spacecraft out of a sci-fi movie. A giant touchscreen interface sits front and center, providing essential information as you embark on your journey.
For its battery, Tesla simply decided to use 18650-type (recently called 1865) cylindrical batteries, designed for general purpose (slightly adapted to EVs). They were difficult to use, due to the high number of small cells (low capacity) in the battery pack (several thousand), but available at a consistent quality and in high volume.
How to get a Tesla for cheap
Well, am afraid there are no cheap Teslas, or maybe what you consider cheap may not be cheap to another person. The only way possible way to buy a Tesla at an affordable price is to buy directly from a private seller or third party. This is actually the cheapest way to buy any vehicle.
Bottom Line
Insurance on a Tesla can be really expensive but it’s worth it. This will help reduce costs in case of any casualty or theft. Teslas over the years are known for producing electric cars that are self-driven and have long-lasting batteries to save you cost from gas.
FAQ
Its insurance is still fairly expensive, at $3,386 per year
Tesla launched its own insurance option in 2019 in other to ease the financial burden Tesla owners faced when insuring their vehicles with other insurance companies.
Autonomous vehicle owner coverage
Wall charger coverage
Electronic key replacement
Auto loan/lease gap insurance
Cyber identity fraud coverage
Tesla offers insurance for its cars since 2019 in other to ease the financial burden Tesla owners faced when insuring their vehicles with other insurance companies.
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