Car insurance is an essential service that helps drivers avoid debts after an accident by easing the financial burden of hospital or car repair bills. Most states require drivers to have insurance to protect themselves and any other parties in the case of an accident. Different kinds of car insurance offer different coverage, and owning a Tesla car can impact what car insurance is best for you.
What Is Car Insurance?
Car insurance is a service that insurance companies offer where they take on a portion of the fees associated with a collision in return for monthly payments from their clients. Every month that you don’t get into an accident, they allocate the fee to any future collision costs you may acquire. Different levels of insurance are offered, and you can choose the coverage that seems appropriate for your lifestyle. Here are some types of insurance coverage that you could use as a Tesla owner:
Bodily Injury and Property Damage
Bodily injury and property damage insurance covers accidents you cause as the driver that result in injuries, death, or property damage. As the insured party, if you cause the damage while driving your Tesla, the insurance company covers any costs. Having bodily injury and property damage insurance helps with any hospital bills that you may incur. If another injured party requires medical treatment, the insurance can cover those costs as well. You won’t be financially responsible for replacing damaged property or repairing damaged vehicles.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage is insurance that covers your associated costs if you’re in an accident with a driver who is not insured. If you have insurance that covers any injuries to parties in an accident, but the other motorist does not, you may be financially responsible for whatever charges your insurance doesn’t cover. With uninsured/underinsured motorist coverage, you’re covered regardless of what insurance the other motorist has or does not have. This coverage is especially important if you want to cover all potential circumstances.
Collision coverage is insurance that covers damage that a vehicle undergoes due to an accident or collision with a stationary object. It covers any repair costs of an accident during your lease, no matter who is at fault. Whether you or another motorist is the primary cause of the accident, you won’t be held financially responsible for repairing the rented vehicle. This insurance pays for any repairs the damaged vehicle needs. You can get collision insurance for a rental car or for one you own or lease.
Comprehensive coverage is insurance coverage that covers repairs caused by any events outside of your control. This can include any damage due to weather, animal interactions, random vandalism, or “acts of god” that may damage your car. This is a good type of insurance to have to ensure that you’re covered for any damage to your car.
Different insurance plans can offer a combination of these plans, so it’s important to research your insurance plan to make sure it covers everything you want to be insured for. The more potential situations you have included in your coverage, the safer you’re from possible fees associated with an accident. However, more comprehensive plans are likely to have higher monthly payments.
Insuring Your Tesla
You may find that insuring your Tesla is more expensive than insuring previous cars you’ve owned. This is because Tesla has unique technology that can be more difficult to replace and may cause additional fees if damaged or used to damage another vehicle. Teslas are also classified as luxury vehicles, which can increase the cost of your insurance. Luxury cars typically have more expensive parts or elements that are harder to duplicate because of their more expensive manufacturing practices. To cover these potential costs, your monthly fee to an insurance company is likely to be higher.
Different Teslas also have unique technology and parts. Depending on what model Tesla you have, your insurance rates can vary. Your fees may also be affected by your location and driving history. Some locations are more dangerous to drive in than others, which can increase the likelihood of a collision and therefore increase the cost of coverage. If you have a history of collisions, your insurance premiums may be higher no matter what car you drive, because your insurance company will adjust for the likelihood that you may get into future accidents.
The Best Car Insurance for Tesla Cars
Depending on what you’re looking for in an insurance plan, various companies offer Tesla insurance that can provide you with the coverage you need. You can select the right company by researching the benefits of their plans. Here are some companies that offer car insurance for Tesla:
Progressive has some of the cheapest rates for Tesla car insurance. Progressive is a car insurance company that offers several auto coverage plans at a discount to provide inexpensive coverage to all drivers. For Tesla drivers, whose insurance can be more expensive, Progressive still offers a cheaper alternative than other insurance companies. Through Progressive, you can customize a plan that includes the coverages you want, including liability, comprehensive, and collision. The coverage you opt into can also impact the rates you pay.
Tesla also offers insurance through the manufacturer that can have specific perks for Tesla owners. This insurance is competitively priced and offers comprehensive coverage aimed at protecting Tesla drivers. The company’s unique understanding of its technologies and the components required to return it to factory standard gives Tesla the ability to specialize in underwriting insurance policies for its own models. The unique setup of the insurance policies by the manufacturer can improve the customer experience, but the coverage itself isn’t as well tested as that offered by other insurance companies.
Tesla’s insurance is available to Tesla owners in the following states:
Other states may be added to this list soon as Tesla expands its capabilities and reach. Tesla doesn’t use personal driving history as a factor when setting the price of its insurance, so in some circumstances, it may be a cost-effective option. Understanding what insurance you need requires researching the regulations in your state, how much you can pay, and what rates you may be offered based on your driving history.
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.