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Acquiring insurance for your Tesla is an important part of protecting you and your vehicle from any unforeseen circumstances. Getting your Tesla insured is not that different than insuring other vehicles, but there are a few unique options available to Tesla drivers.
Can I Get Car Insurance for My Tesla?
You can get car insurance for your Tesla just like you would for another vehicle. The simplest way of doing so is by comparing quotes from several car insurance providers. The insurance company will determine your quote based on factors such as your driving record and experience, your coverage needs, and personal information such as your age, gender, and location.
Car Insurance for Teslas
Like any other car, Teslas also need car insurance. Due to this car’s high-tech nature, you’ll need to purchase additional coverage for it. Insuring your Tesla will protect you against liability in the case of an accident with another vehicle, pedestrian, or public or private property. The proper type of insurance will also cover damage to your car.
How Much Does It Cost to Insure a Tesla?
Most major car insurance providers offer coverage for your Tesla, but since they classify it as a luxury vehicle, they will charge you a high-end premium to match. Research shows that on average, it costs $4539 per year to insure a Tesla. This cost will depend on the model of your Tesla, your driving history, and how much coverage you choose.
Companies That Offer the Cheapest Insurance for Tesla
Depending on your Tesla model, the cheapest insurance provider will differ. For instance, GEICO Insurance currently offers the cheapest rates for the Tesla Model 3. However, for the Tesla Model X, Progressive has the cheapest rates, according to the Zebra. Overall, when we compared car insurance companies, we found that Progressive offered the cheapest insurance rates for Teslas. These are the top nine cheapest insurance companies for Teslas:
- Progressive – $2363
- AAA Norcal – $2736
- Tesla Insurance – $3315
- State Farm – $3995
- GEICO – $4181
- Farmers – $4463
- Allstate – $5314
- AAA Socal – $6862
- Mercury – $7625
Tesla Insurance Program
Tesla Insurance is currently only available to drivers in California, but it should come to other U.S. states in the near future. The program was launched in August 2019 with the aim of making Tesla a one-stop provider for car services, starting with insurance. According to Tesla, they have a better understanding of how their vehicles operate and how drivers use them, hence they can charge more suitable insurance premiums.
Their pricing is based on the car’s safety systems, but not on personalized driving data. The insurance program includes basic liability, collision, and comprehensive packages, as well as special coverage for identity fraud, electronic key replacement, and wall chargers. In summary, Tesla will use what it knows about its vehicle’s safety features and automated driving technology to reduce the cost of insurance for Tesla owners.
Tesla Insurance Program Drawbacks
Tesla Insurance will not cover your car if you use it for ride-sharing. They’re working on a separate insurance policy for commercial vehicles.
Tesla’s New Plans to Cut Insurance Costs for Drivers
According to Business Insider, Tesla’s insurance plans to offer a 20 percent to 35 percent discount to drivers who have not been issued tickets or been liable for accidents within the last three to five years. They also hope to include other commonly available discounts such as:
- Multi-policy discount
- Loyalty discount
- Group rate
- Mature driver improvement course discount
- Anti-theft device discount
Special Coverages Available from Tesla Insurance
All Tesla insurance packages come with a Vehicle Automation Package that includes the following:
- Autonomous vehicle liability: This insures you against damage to property or bodily injury as a result of a collision when your vehicle is in autonomous vehicle mode to the same limits of liability as when you’re driving.
- Cyber identity fraud expense: This covers you against digital identity fraud. Coverage is limited to $15,000 per occurrence and $30,000 per insurance period.
- Wall charger coverage: This covers your manufacturer-issued electrical power charger if it gets damaged or lost. This coverage is limited to $3000 and doesn’t cover damage that you caused or a factory defect.
- Electronic key replacement: This covers the loss of your electronic car keys, up to $500 for two incidents in each insurance period.
- Loan/lease gap coverage: This protects you in case your car is stolen or damaged. It will pay the balance of your car lease or loan, based on the value of your car.
Cost of Tesla Insurance
According to Tesla, its in-house insurance will cost 20 percent to 30 percent less than what other insurance providers charge. Tesla is able to offer reduced premiums because they don’t charge the extra fees associated with regular insurance providers. While it seems like you’ll be able to save money on insurance with Tesla, you’ll need to properly research other providers to compare prices and find the most suitable one for you.
Car Insurance Needed for Tesla
You’ll get an idea of how much your monthly premium will cost after you’ve determined what you need from the different types of coverage available. Coverage types include:
- Liability insurance: Liability insurance covers you against injury caused to another person or damage to their property. Tesla’s are not more dangerous than other vehicles, so you probably won’t need more liability coverage than usual. Buy the state minimum and add a little extra to cover medical bills and possible lawsuits that may result from an accident.
- Personal injury protection: This covers you and your passengers in the case of an accident in your Tesla. It will take care of your medical bills, regardless of who caused the accident.
- Collision insurance: This covers any damage to your Tesla as a result of a collision. Tesla’s are made of a more expensive material than other cars, so will be more expensive to repair. Hence, they will cost more to insure against collision.
- Comprehensive insurance: This covers damage caused to your Tesla by something other than another vehicle. It may also cover the theft of your car.
Average Cost of Tesla Model 3 Insurance
Our analysis shows that it costs $2215 per year on average to insure a Tesla Model 3, 50 percent higher than the national car insurance average.
Sources:
https://www.valuepenguin.com/tesla-car-insurance
https://www.nerdwallet.com/article/insurance/tesla-insurance
https://www.insurance.com/auto-insurance/tesla-insurance
https://www.thezebra.com/auto-insurance/vehicles/tesla/
https://www.policygenius.com/auto-insurance/car-insurance-for-teslas/
https://www.caranddriver.com/car-insurance/a35292754/how-to-get-the-lowest-car-insurance-rate/
https://www.caranddriver.com/car-insurance/a32879450/cheapest-car-insurance/
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