It’s no secret that living in New York can be pricey, especially for those who live in the more congested parts of the state. Buying a car can be a lengthy process with many steps, and finding the right insurance plan for your vehicle, needs, and location can be overwhelming, especially for specialty vehicles, like Teslas. Teslas are all-electric luxury vehicles that can cost quite a bit to insure, especially for those living in the already-expensive New York.
If you’re interested in finding the right insurance plan for your Tesla, keep reading to learn more about the company itself, factors that determine insurance rates, how much it costs to insure a Tesla in New York, and tips for reducing these costs.
What Is Tesla?
Tesla is an electric auto-manufacturing company founded in 2003 focused on providing the public with luxurious, attainable, and environmentally clean options on the vehicle market. Tesla began creating electric vehicles with the release of the Roadster in 2008, followed by the releases of the Model S, Model X, Model 3, and the most recent Model Y in 2019. They also create other energy efficient products, such as their solar roof, which provides energy harnessed from the sun to power entire households.
As all-electric vehicles, Teslas have relatively high repair and maintenance costs associated with them. You can only get repairs for your vehicle at Tesla-approved body shops, limiting your options. Some of the distinct design and performance features that make Teslas standout as cars of the future, such as their upward-opening falcon doors, autopilot mode, and state-of-the-art infotainment system, make them more costly to upkeep. The parts and caliber of work necessary to maintain these vehicles can cost much more than that of a standard car, making them more expensive to insure.
What Determines Car Insurance Costs?
There are many elements that can go into an insurance companies deliberations and calculations for determining your car insurance premiums. Here are some of the most common factors that can decide your Tesla Insurance rates in New York and across the country:
- Age: Age can be a major deciding factor when insurance companies offer coverage. Young drivers in their teens and early 20s, along with senior drivers over 70 often have the highest rates due to a perceived lack of response time and attention.
- Location: Where you live also matters, which you probably already know living in New York. Certain states, like New York, and cities within them, like New York City, have larger populations and traffic levels, making their insurance rates higher on average.
- Driving Record: Your driving history can make a difference in how much you pay for monthly premiums. People with clean driving records free of accidents or traffic violations can often score lower rates due to less risk of them needing coverage from the insurer.
- Credit Score: Your financial background can also influence your insurance rates, as people with stronger credit scores can often qualify for discounts. This is because insurance companies feel confident that these individuals will stay consistent with their financial history and make their payments consistently.
How Much Does Tesla Insurance Cost in New York?
According to Nerd Wallet, the average cost of fully insuring a Tesla vehicle in New York is approximately $2,693 per year. They report that the cheapest auto insurance provider for a Tesla in New York is NYCM at $1,021 per year. In comparison, it costs an average of $2,020 per year for full coverage car insurance in New York among all car brands.
It’s important to note that New York insurance laws require all car owners to have liability, personal injury protection, and uninsured motorist bodily injury coverage as part of their auto insurance plans. This also contributes to the high cost of car insurance in the state by raising the demand and, therefore, cost.
Tips For Decreasing Car Insurance Costs in New York
Being a New York resident comes with a lot of perks, but the drawback is that these benefits often come at an increased price tag. While trying to budget your income and protect your assets living in New York, consider following these five tips to ensure you get the lowest rates possible on your car insurance payments:
- Research and obtain free quotes from all the car insurance companies available to you in New York and their respective rates to determine which has the best value in terms of its cost and coverage.
- Look into the different discounts each of the auto insurers provides and determine which ones you may qualify for, with some of the most common being safe driver and good student discounts.
- Talk to your insurance agent to discuss the possibility of raising your deductible in exchange for reducing your monthly premium, so that if you maintain a safe driving record you can save on your monthly payments.
- Consider paying the entirety of your car insurance premium at once rather than opting for the more traditional monthly payment schedule, as you can often receive discounts for this, sometimes up to 20% your total costs.
- Look into the Tesla Insurance program and stay updated on when they plan to introduce the system to their New York drivers, as the company previously claimed to plan on bringing their insurance to all 50 states by the end of 2022.
Tesla cars, thanks to their impressive technology, safety, and all-electric features, are valuable investments you want to protect in case of an accident, damage, or theft. Living in New York, you’ll likely have many expenses related to your urban dwelling, and costs associated with your Tesla don’t have to be part of the problem. By taking the necessary steps to research companies, get free quotes, and calculate rates after discounts, you can determine the best coverage and cost-friendly plan to protect you and your Tesla in case of an unforeseen event.
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.