The average cost of insuring a Tesla varies widely depending on multiple factors, but for drivers in the U.S., current data shows that Tesla Insurance may range from approximately $120 to $350 or more per month, depending on the model, coverage type, location, and driver profile. This page explains how much is Tesla insurance a month, dives into what shapes your premium, and outlines everything prospective buyers and owners need to consider.
Who This Policy Is For & Eligibility
Tesla owners and lessees required to carry state minimum liability coverage and, if financing, comprehensive/collision insurance.
Drivers seeking coverage for electric vehicles, where replacement parts and repair costs may differ from traditional cars.
Eligibility criteria for most insurers includes valid license, insurable driving history, garaging address, and compliance with state auto insurance mandates.
Eligibility for Tesla’s own branded insurance varies by state, as rollout is ongoing and rules vary year to year.
High-performance Tesla trims or unique features may require higher premium tiers or specialty underwriting.
Liability (BI/PD), collision, comprehensive, uninsured/underinsured motorist (UM/UIM), PIP/MedPay, roadside, gap coverage. Most Tesla drivers opt for full coverage (liability plus comprehensive and collision).
Sample Monthly Premium
$120 to $350+ per month (varies by model, coverage, driver profile, and state; source: 2026 carrier data)
Deductible
Commonly $500 to $1,000; higher deductibles can lower premium.
Policy Limits
State minimums (sample: $25,000/$50,000/$25,000) up to much higher limits for collision/comprehensive; confirm local laws.
Discounts
Bundling, telematics/usage-based, clean driving, claims-free; specifics vary by insurer.
Enrollment
Available year-round (auto insurance has no set enrollment window).
Claims Process
File claim, adjuster review, repair/replace per policy. Tesla may offer expedited repair networks for branded insurance.
Exclusions
Intentional acts, racing, commercial use (unless specified), excluded drivers; verify in policy contract.
Waiting Period
Generally none; coverage starts once policy is bound and payment is accepted.
Pros
Specialized policies may be tailored for electric vehicles, including access to Tesla-certified repair shops.
Broad liability and damage coverage, including options for uninsured/underinsured motorist protection.
Discounts may be available for safe driving, bundling, or electric vehicle safety features.
Digital tools, real-time tracking, and usage-based features are increasingly offered.
Instant quotes and policy purchase available online for most providers.
Cons
Average premium for Teslas tends to be higher than similarly priced non-electric vehicles due to repair costs, technology, and parts availability.
Collision and comprehensive costs are often elevated because of Tesla’s high repair/replacement expenses and limited repair networks.
Not all insurance carriers offer competitive premiums or services for Teslas (especially new or performance models).
Coverage exclusions may affect coverage for aftermarket modifications or commercial/rideshare use.
Premium volatility—some markets and driver profiles may see substantial rate swings at renewal.
Costs & How Pricing Works
Premium: This is the ongoing monthly or annual fee to keep the policy active. For Teslas, premiums average $120–$350+ per month (illustrative; verify quotes locally).
Deductible: Out-of-pocket cost for each claim (e.g., $500 per collision or comprehensive event). Higher deductibles generally reduce the premium, but increase out-of-pocket risk.
Coverage Choices: Liability-only is cheaper but does not protect your own vehicle. Adding collision and comprehensive increases monthly costs but protects against theft, vandalism, weather, animal strikes, etc.
In-Network vs Out-of-Network Repairs: Tesla’s branded coverage may steer drivers to certified Tesla collision centers or preferred networks, potentially reducing repair time but affecting shop choice.
Factors affecting pricing include driver age/gender, location/ZIP code, annual mileage, driving and claims history, credit-based insurance score (not used in all states), and vehicle model/trims.
Model Impact: Performance and luxury Teslas (Model X, Plaid, etc.) typically have higher rates due to increased replacement cost and risk; Model 3 Standard has some of the lowest average premiums ($169 to $348/month for full coverage).
Telematics Options: Usage-based insurance (UBI) and safe-driver programs can reward low-risk driving with premium discounts—availability varies by insurer and state rules.
Claims & Repair Process
Report the claim to your insurer (or via Tesla app/portal if using Tesla-branded insurance).
An adjuster reviews the claim, requests documentation (photos, police report if needed), and may arrange an inspection.
For covered damage, you’ll choose a repair facility. Some policies and Tesla Insurance favor certified Tesla shops.
Repairs are performed and payment (minus your deductible) is issued directly to the shop or you (varies by insurer).
If your vehicle is a total loss, payout equals actual cash value (ACV) minus deductible, unless gap or replacement cost coverage applies.
Rental and transportation coverage may be available for additional premium (policy dependent).
State Rules & Minimums
Every state (except New Hampshire and Virginia in limited cases) requires minimum auto liability coverage to legally drive.
Liability minimums vary by state (e.g., $25,000 bodily injury/$50,000 per accident/$25,000 property damage), subject to change; check with your state insurance department (official homepage) for the latest requirements.
Financed or leased Teslas must carry comprehensive and collision insurance at lender-specified limits.
No-fault insurance (including PIP coverage) is required in certain states, influencing premium and coverage structure.
Uninsured/underinsured motorist (UM/UIM) and MedPay may be optional or mandatory, state dependent.
Quotes & Cost Drivers
Coverage limits and chosen deductibles substantially shape quoted premium.
Risk profile factors: location (city vs rural), age, claims/accident history, driving record, vehicle use patterns.
Tesla model configuration, trim, and year—the more performance, the higher the potential premium.
Discount eligibility—multi-policy/bundle, anti-theft devices, usage-based tracking, safe driver history (no guarantees; varies by insurer).
Policy term (6- or 12-month), payment schedule (monthly vs annual), and automatic payment options can affect total outlay.
Credit-based insurance scores may be a factor where permitted; some states ban or restrict their use.
Coverage Optimizer Checklist
List state-mandated liability and PIP/minimums as required.
Evaluate whether full coverage (liability, collision, comprehensive) is needed, especially with outstanding loans or leases.
Assess need for gap coverage (pays difference between loan balance and ACV in a total loss).
Consider endorsements for special equipment or aftermarket modifications.
Review deductibles—higher will save premium but increase claims cost.
Ask about rental/transportation coverage if your Tesla is your primary vehicle.
Alternatives & Comparisons
Traditional Auto Insurance Providers: Many national and regional insurers offer full coverage for Teslas, with varying rates and repair networks—always compare policy details and exclusions.
Tesla-Branded Insurance: Offered in select states, Tesla Insurance uses telematics and vehicle data for potential rate savings based on actual driving, but may not be cheapest for all drivers or models. Availability is expanding; check Tesla’s site for your state.
Specialty/Electric Vehicle Insurers: Some insurers provide niche coverage with green car discounts, OEM repair guarantees, or extras tailored to electric vehicles.
Liability-Only Policies: Lowest legally allowed premium, but exposes you to full repair/replacement costs for your own car in an at-fault accident or events outside liability.
Side-by-Side Comparison
Feature
Traditional Full Coverage
Liability-Only
Tesla-Branded Insurance
Coverage Scope
Liability + comprehensive + collision; may include UM/UIM, PIP, rental, roadside.
Liability only; covers bodily injury/property damage to others.
Full coverage with potential rate discounts via telematics and integration with Tesla app; state availability limited.
Typical Premium
$169–$350/month (varies by model/state; illustrative)
$89–$172/month (sample for minimum coverage; varies)
$120–$300/month (illustrative; actual may be lower/higher)
Deductible
$500–$1,000; varies by insurer/option
$0 (liability), no own-vehicle coverage
Usually $500–$1,000, customizable
Exclusions
Intentional acts, racing, business uses unless endorsed, certain non-OEM parts
No own-damage coverage, theft/fire excluded
Varies by state; may offer OEM-only parts, but limitations on commercial coverage
Claims Process
Standard: file, adjuster reviews, payout minus deductible
Third-party only; no payout for your own Tesla
May offer expedited app-based filing and repair network integration
Important
This content is for educational purposes only. It is not insurance, legal, or tax advice.
Premiums, coverage, eligibility, and requirements are sample/illustrative and vary by state, car model, and insurer; always verify the latest on your state insurance department or NAIC consumer resources (official).
Frequently Asked Questions
Why is Tesla insurance typically more expensive than coverage for other brands?
Repair costs and replacement parts for Teslas are higher due to advanced technology and proprietary systems.
Limited certified repair facilities can extend downtime and costs.
Many traditional insurers rely on legacy data that prices EVs as specialty vehicles, affecting premium.
Are there discounts available for Tesla insurance?
Many insurers offer telematics-based or safe-driving discounts.
Bundling with homeowners or renters insurance may provide savings.
Not all discounts are guaranteed or available in every state.
Is usage-based insurance (UBI) available for Teslas?
Yes, some providers offer usage-based or real-time tracking which may reduce premiums for low-risk, low-mileage drivers—Tesla-branded Insurance uses this model in select states.
Availability and impact on pricing varies by region and insurer.
Does Tesla insurance cover non-OEM or aftermarket parts?
Many policies restrict coverage to original manufacturer parts or specific repair networks.
Always check exclusions and endorsements before modifying your vehicle.
Does my insurance always cover battery damage or fires?
Most comprehensive policies cover accidental battery damage or fire but may exclude wear and tear, degradation, or manufacturer defect—verify in your specific policy.
Conclusion & Next Steps
Tesla insurance premiums generally range from $120 to $350+ per month, depending on your vehicle, driver profile, location, and coverage choices; the Tesla Model 3 often sits at the lower end of this range.
Drivers can choose between traditional auto insurers, Tesla-branded options where available, or specialty EV insurers—shop quotes and review coverage, exclusions, and service networks carefully.
