Tesla drivers save on gas, but they typically face higher insurance premiums because the brand's advanced technology and unique features mean higher repair costs.
According to Kelley Blue Book, Teslas are more likely to be considered a total loss after a collision than other cars, including other electric cars, because of their specialized manufacturing, high-tech components and proprietary battery packs.
CNBC Select combed through dozens of auto insurers to find the best car insurance for Teslas, based on cost, customer service and other factors. For more on how we made our choices, see our methodology.
The best car insurance for Teslas
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Best for affordability: Progressive
Who's this for? Progressive is one of the more affordable companies for Tesla car insurance. It also has the lowest rates for several models, according to data we reviewed.
Standout benefits: Progressive has previously topped our list of the best car insurance for high-risk drivers, so it could also be a good fit for Tesla drivers with an accident or ticket on their record.
- Small-accident forgiveness included with all policies — Accidents with claims of $500 or less will not affect your rates.
- Large accident forgiveness also available
- Non-owner car insurance and SR-22 certificates available
- Offers decreasing deductibles for each year you're accident-free
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Best for occasional drivers: Lemonade
Who's this for? Lemonade's car insurance program considers the number of miles you drive when calculating your rate. Therefore, work-from-home professionals or city dwellers who often use other modes of transportation could save big with this brand. Plus, there's a discount for driving an electric vehicle.
Standout benefits: If you rent your home, Lemonade's renters insurance has been one of our top picks for its easy-to-use app and quick claims. Bundling your auto insurance policy could help you save on both policies.
Lemonade Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Lemonade offers coverage for a variety of scenarios, including: car crashes, highway stalls, damage from fire, vandalism and weather, damaged glass and windshield, if you're sued for liability and if your car gets stolen
Terms apply.
Best for good drivers: Nationwide
Who's this for? Nationwide tends to have low rates for Tesla drivers with clean driving records. Nationwide offers a discount for those without tickets or accidents in the past five years. Drivers who enroll in the brand's SmartRide telematics program, which considers factors like braking, acceleration and driving time, will save 10% automatically, and earn a discount of up to 25% based on their habits.
Standout benefits: Homeowners can also bundle their home and auto insurance to save an average of over $1,000 per year, according to Nationwide.
- Available in 46 states and Washington, D.C.
- Lowest average premiums for full coverage
- Quotes available online
- High average premium for minimum coverage
- Lower than average scores from J.D. Power's customer satisfaction survey
Best for families: American Family
Who's this for? If you have young adult drivers, American Family offers several ways for them to save, including discounts for keeping good grades and for volunteering in your community.
Standout benefits: Families with multiple cars could save even more with the brand's multi-car discount.
- Discounts of up to 40% for bundling home and auto
- Offers gap coverage, useful for new car drivers
- Early quoting, paying your premium in full and volunteering in your community can help you earn discounts
- Only available in 19 states
- Low customer review BBB rating
- Slightly higher prices than some car insurance competitors
How much is car insurance for a Tesla
The average cost of car insurance for all cars is $2,172 per year, according to The Zebra. However, electric cars can be more expensive to insure than standard gas-powered cars, and Teslas tend to fall on the higher end due to their steep repair costs.
And, not all models are the same — some cost significantly more than others. Here are the five common Tesla models and their average annual insurance costs, according to data from The Zebra.
- Tesla Model 3: $3,153
- Tesla Model S: $4,032
- Tesla Model X: $4,529
- Tesla Model Y: $3,391
- Tesla Cybertruck: $4,156
How to save on car insurance for a Tesla
If you own a Tesla, there are steps you can take to bring down your insurance costs. Here are our top tips to save:
- Bundle your home and auto insurance: Whether you own or rent your home, you could bundle your coverage and save, sometimes to the tune of 20% or more.
- Increase your deductible: Raising your deductible typically lowers your premium — increasing your deductible from $250 to $500 could help you save between 15% and 30% on your car insurance premium, according to Insurance Information Institute data.
- Boost your credit score: Those with poor credit pay significantly more for car insurance than those who have good credit. And credit scores can be considered when setting auto insurance rates in most U.S. states. To start raising your score, make sure you're paying your bills in full and on time, and consider checking your credit report for errors.
- Comparison shop: Not all car insurance companies will offer you the same price for similar coverage. Getting quotes from several insurers could help you find the best price. And, using an AI tool like Jerry or Insurify to shop for car insurance could make the process quick and easy.
Tesla car insurance FAQs
How expensive is car insurance on a Tesla?
Tesla car insurance costs vary by model. The cheapest to insure is the Model 3, at about $3,153 per year. The most expensive is the Model X, which costs about $4,529 per year to insure.
Does Tesla offer car insurance?
Tesla does offer its own car insurance, but it's only available in about a dozen states and has a high volume of complaints with the National Association of Insurance Commissioners. In addition, it uses real-time driving behavior to adjust rates each month, making it difficult to predict what your premiums will be.
Do Teslas cost more to insure?
Yes, Teslas tend to cost more than gas-powered cars — and even more than some other electric-vehicle brands — to insure. Structural, technology and battery issues after an accident can raise repair prices, one factor of the higher insurance amounts.
Which insurance company is the best for a Tesla?
Some of our top picks for Tesla car insurance include Lemonade, Nationwide and American Family for their affordable rates relative to the competition, EV discounts and other perks.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of auto insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best car insurance for Teslas.
Our methodology
To determine which auto insurance companies are best for Teslas, CNBC Select analyzed over a dozen U.S. auto insurance companies, focusing on the following features:
- EV discount: We reviewed the availability of discounts for EV drivers.
- Cost: Using premium data from The Zebra, we looked for companies with the lowest rates for popular electric cars.
- Availability: Companies that were available in more states were given additional weight.
- Customer satisfaction: We reviewed companies' ranking on J.D. Power customer satisfaction surveys and the volume of complaints reported to the National Association of Insurance Commissioners. We also considered a carrier's Better Business Bureau grade.
- Online access: We gave priority to brands that offer quotes online.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, the companies with the best car insurance for Teslas are:
- Best for affordability: Progressive
- Best for occasional drivers: Lemonade
- Best for good drivers: Nationwide
- Best for families: American Family
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