The rise of all-electric and hybrid vehicles has created an increased demand for eco-friendly cars, with the Tesla brand being a leader in this industry. Tesla is a manufacturer that produces all-electric vehicles, and in certain states, it also offers its customers special Tesla Insurance. In Illinois, insurance premiums can fluctuate substantially based on where you live in the state and other factors, such as your age, credit score, driving history, and the specific make and model of your car, with more in-demand and expensive vehicles having higher rates.
Keep reading to learn more about Tesla Insurance, how much it costs to insure a Tesla in Illinois, and tips for decreasing your insurance premiums as an Illinois driver.
What Is Tesla?
Teslas are all-electric vehicles that provide a wide range of standard comfort, convenience, safety, technology, and entertainment features. The Tesla company, while focused primarily on creating vehicles, also manufactures solar panels for individuals to install on their rooftops to harness solar power for energy, further emphasizing their commitment to eco-efficiency. Currently, Tesla produces four all-electric vehicles, which are the Model S, Model Y, Model 3, and Model X. With rising gasoline prices and increased discussions on the long-term environmental impacts of carbon emissions, it’s no secret why more drivers are choosing to go the electric route when buying new vehicles.
While driving a Tesla can certainly save you money on gasoline, it’s important to consider the other expenses that come naturally with driving one of these state-of-the-art vehicles. Compared to other car manufacturers, Teslas are substantially more expensive to repair, maintain, and insure. As electric vehicles, Teslas rely on specially trained technicians to conduct repairs and maintenance on its delicate computer system. Additionally, Teslas have so many distinct parts and features that can make it expensive to purchase and install replacements after a collision or damage.
What Is Tesla Insurance?
Because the Tesla and its features are relatively unprecedented in the modern auto industry, the brand itself has launched its own insurance plan available for Tesla drivers in certain states. Rather than using external factors such as age, credit score, and driving record to determine your monthly premium, Tesla Insurance uses existing technology inside their vehicles to monitor driver behavior and calculate your premium based on that. Through the Tesla app, you can even keep track of your driving safety score, which determines your premium month-by-month. Customers can also manage their policies and report insurance claims through the app.
Currently, the Tesla insurance plan is only available in the following seven states: Arizona, Colorado, Illinois, Ohio, Oregon, Texas, and Virginia. According to their website, Tesla only uses the following six categories as informants for calculating monthly insurance premiums:
- Driving Safety
- Driving Frequency
- Vehicle Type
- Coverage Plan
- Number of Insured Vehicles
Drivers with a poor past driving record, weak credit score, or that occupy an age group with higher car insurance rates like teens and seniors can all benefit from opting in for Tesla Insurance as opposed to other companies that do consider these factors.
How Much Does It Cost To Insure a Tesla in Illinois?
The average annual cost for insuring a Tesla in Illinois is approximately $1,864 per year, according to Nerd Wallet. This is higher than what Value Penguin reports to be the average cost of minimum liability car insurance in Illinois among all manufacturers, which comes out to an average of $717 per year, while full coverage insurance can cost an average of $1,751 per year. Comparatively, Teslas don’t cost much more to insure than the average vehicle in the state of Illinois.
Here are some of the average costs for insuring vehicles in Illinois among the major insurance companies. Remember that Teslas are often more expensive to insure due to their higher maintenance and repair costs:
- State Farm: $959 per year
- Travelers: $1,482 per year
- Progressive: $1,876 per year
- GEICO: $1,994 per year
- Allstate: $2,672 per year
Tips For Saving on Tesla Insurance Costs in Illinois
Budgeting for a new car involves setting aside income to cover auto insurance costs, especially for an electric vehicle like a Tesla that often costs more to insure. Here are some tips you can follow to help reduce your monthly insurance premiums as a Tesla driver in Illinois and across the country:
- Look For Discounts: One of the best ways you can make a difference in how much you pay for car insurance is to conduct thorough research on the different discounts each insurer provides for which you may be eligible. Some common discounts include those for safe drivers with clean records, good students with proof of GPA or grades, and even for being in the military.
- Explore All Options: Another tip to help decrease your Tesla Insurance costs is to explore all your car insurance options. Learn as much as possible about the Tesla Insurance program and cross-examine it with other popular auto insurers, such as Nationwide, Progressive, or GEICO to determine which offers the best rates for what you want to cover.
- Pay Annual Premium: You can also save on insurance costs for your Tesla by electing to pay off your premium annually as opposed to monthly. Insurers often offer discounts to customers who pay their premium in full as opposed to per month, as it guarantees them their part of the agreement (in which you pay your monthly premium consistently and, eventually, in full.)
Compared to other states, Illinois is a pretty good place to be if you’re interested in driving a Tesla. As one of only seven states that offers the Tesla Insurance program, Illinois drivers can take advantage of the more relaxed metrics the company uses to assign premiums and pay significantly less in insurance costs. Even if you decide that an outside insurer is the better option, make sure to conduct plenty of research on their discounts, coverage, rates, and customer service to determine the plan with the best value for you.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.