Best Cheap Tesla Car Insurance Companies
Nationwide and American Family are the best Tesla car insurance companies
- Nationwide has the cheapest Tesla car insurance quotes for a Model Y, Model 3 and Model S.
- American Family has the cheapest rates for Tesla Model X.
- Tesla offers its own car insurance in 12 states. Its rates are competitive, but it also has a bad complaint rating.
How much is Tesla car insurance?
The average cost of car insurance for a 2024 Tesla Model Y is $331 a month for full coverage. This makes it the cheapest Tesla to insure.
Full coverage costs an average of $534 a month for a Tesla Model S, the most expensive Tesla to insure.
Tesla car insurance costs by model
| Model | Monthly rate |
|---|---|
| Tesla Model Y | $331 |
| Tesla Model 3 | $339 |
| Tesla Model X | $400 |
| Tesla Model S | $534 |
Cheapest car insurance for Tesla Model Y
USAA charges $163 a month, on average, which is cheapest overall. However, USAA is only available to the military community.
American Family and State Farm have the next-cheapest rates after Nationwide.
Tesla Model Y car insurance rates
| Company | Monthly rate | LendingTree score |
|---|---|---|
| Nationwide | $195 |  |
| American Family | $198 |  |
| State Farm | $232 |  |
| AAA | $299 | Not rated |
| Model Y average | $331 | Not rated |
| Geico | $346 |  |
| Travelers | $411 | |
| Farmers | $443 | |
| Progressive | $463 | |
| Allstate | $709 | |
| USAA* | $163 | |
Cheapest Tesla Model 3 car insurance quotes
Travelers and State Farm have the next-cheapest rates for most Model 3 drivers.
The average price of car insurance for a Model 3 is $339 a month.
Tesla Model 3 car insurance rates
| Company | Monthly rate |
|---|---|
| Nationwide | $218 |
| Travelers | $253 |
| State Farm | $255 |
| American Family | $263 |
| Model 3 average | $339 |
| AAA | $369 |
| Progressive | $415 |
| Geico | $437 |
| Farmers | $471 |
| Allstate | $624 |
| USAA* | $235 |
Cheapest car insurance for Tesla Model X
Nationwide and State Farm have the next-cheapest Model X insurance rates.
Tesla Model X car insurance rates
| Company | Monthly rate |
|---|---|
| American Family | $196 |
| Nationwide | $246 |
| State Farm | $257 |
| AAA | $299 |
| Model X average | $400 |
| Farmers | $406 |
| Travelers | $407 |
| Progressive | $485 |
| Geico | $591 |
| Allstate | $995 |
| USAA* | $163 |
Cheapest Tesla Model S car insurance quotes
The next-cheapest rates for most drivers are from State Farm and Travelers.
Nationwide’s rate is about half the average price of car insurance for a Tesla Model S.
Tesla Model S car insurance rates
| Company | Monthly rate |
|---|---|
| Nationwide | $269 |
| State Farm | $349 |
| Travelers | $399 |
| American Family | $506 |
| Model S average | $534 |
| Progressive | $573 |
| AAA | $594 |
| Farmers | $600 |
| Geico | $826 |
| Allstate | $1,056 |
| USAA* | $349 |
How does Tesla’s car insurance work?
Tesla offers its own line of car insurance in 12 states, including California and Texas. The company has plans to expand into other states.
You have to download the Tesla app to get quotes. It’s a quick, easy process after that. Just make sure you have your driver’s license and vehicle identification number (VIN) handy.
Tesla insurance includes all the normal coverages such as liability, collision, comprehensive and medical payments. It also offers extras like rental car reimbursement and gap coverage in most of the states it serves.
Tesla’s car insurance is currently available in:
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Tesla’s car insurance Safety Score
Tesla’s insurance company uses driving data from your car to give you a Safety Score.
Unless you live in California, your Safety Score determines insurance rate. If you drive safely after you buy your policy, your rate may go down. If you drive poorly, you may pay more. Tesla uses your Safety Score to adjust your rates each month and when you renew.
The Safety Score program is similar to the smartphone-based safe driving apps many other car insurance companies offer. However, other companies usually only adjust your rate when you renew your policy, not monthly like Tesla.
Is Tesla a good car insurance company?
A 5.8 score means the company had nearly six times as many confirmed complaints as average for its size. A confirmed complaint is one that leads to a finding of fault.
Tesla launched its car insurance division in 2019. The company aims to give its customers a cheaper, more convenient alternative to mainstream car insurance companies.
Letting you get quotes, buy insurance and manage a policy on a smartphone checks off the convenience box.
Unfortunately, Tesla has not disclosed its rate filings in the industry’s major publicly accessible database. This makes it tough to verify how its rates compare to companies that do publicly disclose their rate data.
According to the California Department of Insurance, Tesla has its state’s cheapest insurance rates for a Model S.
Best companies for Tesla car insurance
| Company | Monthly rate** | Complaint rating*** | Overall satisfaction**** |
|---|---|---|---|
| Nationwide | $232 | 0.83 | 806 |
| State Farm | $273 | 0.78 | 833 |
| USAA* | $228 | 0.99 | 876 |
| Industry averages | $397 | 1 | 820 |
**Average monthly rate for all Tesla models.
***Source: 2023 NAIC Complaint Index. Lower is better.
****Source: J.D. Power 2023 U.S. Auto Insurance Study. Higher is better.
Best rates: Nationwide
Nationwide’s rates for Tesla car insurance are 42% lower than the average for all Tesla models. The company has fewer confirmed complaints than average for its size. However, its overall satisfaction rating is below average, according to J.D. Power.
Best overall: State Farm
State Farm combines competitive rates with strong customer service. It has a higher satisfaction score than most other major car insurance companies. It also has a better-than average complaint rating. Its smartphone-based safe driving app ties with Geico and Progressive for best satisfaction score from J.D. Power.
Best for military families: USAA
If you meet USAA’s eligibility requirements, it’s often the best company to insure your Tesla. Its rates are low, and it has a higher overall satisfaction rating than all other car insurance companies. One drawback is USAA’s lack of personalized service. You usually end up speaking to a different person each time you contact the call center for assistance.
Why is Tesla car insurance so expensive?
Insurance companies factor the high costs of Tesla repairs into the rates they charge to insure them. On average, Teslas cost 42% more to insure than vehicles by other manufacturers.
Car insurance rates by vehicle make and model
| Vehicle | Monthly rate |
|---|---|
| Nissan Murano | $237 |
| Ford Explorer ST-Line | $264 |
| Tesla Model Y | $331 |
| Tesla Model 3 | $339 |
| Audi A6 Premium 45 TFSI | $362 |
| Tesla Model X | $400 |
| Tesla Model S | $534 |
How to save money on Tesla insurance
Shopping around and driving safely can help you save you money on Tesla car insurance.
With most insurance companies, your car is one of many factors used to determine your rate. The others include:
- Your ZIP code
- Your insurance and credit history
- Your driving record
- Any discounts you may be eligible to receive
Each company weighs these factors differently and offers different discounts. Comparing quotes from multiple companies helps you find the one with the lowest rates for you.
If you choose Tesla’s insurance company, driving safely will help keep your insurance rates low with a high Safety Score. Safe driving can also help keep your rates low if you sign up for another company’s app-based safety program.
Frequently asked questions
Yes. Tesla’s tend to cost more to insure than comparably priced vehicles. The high cost of insuring Teslas is blamed largely on the high costs of repairing them after an accident.
The cost of Tesla car insurance varies by model. Full-coverage car insurance prices range from $331 a month for a Model Y to $534 a month for a Model S.