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Insurance Cost for the Tesla Model 3

tesla insurance cost model 3

Insuring your Tesla Model 3 can be expensive, but protecting your car from accidents is extremely important. Rates for Teslas are often higher than rates for other vehicles, even though Tesla’s safety ratings are often better. If you’re a skillful driver who has good credit, you can typically find rates as low as $2,115 per year, or $176 a month. Comparing rates of top providers can help you maximize your insurance savings and stay covered on the road.

About the Tesla Model 3

The Tesla Model 3 is a compact, battery-powered sedan. It’s one of Tesla’s more affordable car options and it strikes a balance between accessibility and performance. If you’ve purchased, or are thinking of purchasing, a Tesla Model 3, it’s important to consider insurance costs in your car price calculations. Insuring Teslas can be more costly than insuring other cars, so budgeting for this reality is important to remain in compliance with the law and to keep yourself and other drivers on the road safe.

Why Does Tesla Insurance Cost So Much?

Even though the National Highway Traffic Safety Administration (NHTSA) gives the Tesla Model 3 an excellent five-star safety rating, its insurance costs are higher than for other vehicles. This is because Teslas have higher-than-average part costs and repair costs. In the event you are in an accident, the cost to repair damage to your vehicle will probably be higher. This is why you pay a greater amount for coverage.

That said, because of Tesla’s technology, the chances of being in a collision decrease. In fact, the NHTSA announced that the Model 3 presented the lowest probability of injury of any car model ever tested. As Teslas grow in their technology and popularity, insurance rates for the vehicles may come down. In the meantime, however, you can expect to pay a slightly higher price per month to insure your vehicle.

What Kind of Insurance to Get for Your Tesla

The type of insurance you choose for your vehicle can depend on your driving habits and needs. Here’s a closer look at some popular coverage options you can choose from:

Liability Insurance: Liability insurance is often the minimum coverage option you can choose to remain legally compliant with the laws in your state. This coverage only works to cover damage to other vehicles if you’re in an at-fault accident.

Collision Coverage: Collision coverage helps protect you from accident costs after a collision with another motorist, regardless of who’s at fault.

Comprehensive Insurance: Comprehensive insurance covers damage from like adverse weather events, wildlife-triggered accidents, and other damage not caused by a collision with another vehicle.

Uninsured or Underinsured Motorist Coverage: This type of coverage helps if you get into an accident with a driver who doesn’t have car insurance or who can’t cover the cost of repairs needed for your vehicle.

It’s probably best to choose a more complete coverage option, especially if you drive a lot. That way, you’re protected from other drivers and unpredictable events that might require you to make necessary repairs on your vehicle. Consider factors like the weather in your state, where you plan to store your car, your own driving confidence, and how often you plan to drive your Tesla Model 3.

How To Find the Best Tesla Insurance Rates

Your exact rates can depend on a myriad of factors, like your driving record, your age, your state, and your chosen insurance provider. Consider browsing insurance options to get quotes from multiple providers before deciding on one option. This can allow you to compare rates and maximize your insurance savings.

What’s the Best Tesla Insurance Provider?

There are many insurance providers that cover Teslas. Rates can vary between providers greatly. Typically, Tesla insurance rates are about 30% higher than national average car insurance rates. The average cost to insure a Tesla Model 3 is $3,515 per year or $293 per month.

  • State Farm: $2,087
  • USAA: $2,292
  • Nationwide: $3,169
  • Progressive: $5,681
  • Geico: $6,368

In select states, Tesla offers their own insurance. You can purchase coverage on the Tesla app. Where this insurance is available, this is the least expensive option of all, costing an average of $1,496 per year. Drivers can opt-in to use their actual driving behavior to further influence their rates. Safe drivers can expect to pay lower rates than those who disobey traffic laws frequently or drive aggressively.

What Are the Cheapest States To Insure a Tesla

Coverage costs can vary by state. The cheapest states to insure a Tesla are Massachusetts, Idaho, South Carolina, and Ohio. The most expensive states are Missouri, Louisiana, Rhode Island, and Oklahoma. In these states, different providers offer the cheapest rates. Doing research to get quotes can help you determine the best insurance option.

What Affects Insurance Rates?

The type of car you drive and the state where you live aren’t the only factors that affect the price of your car insurance. Other factors relate to a driver’s perceived risk, or how likely insurance companies think it is that they might be in an accident. Here are some details many insurers look at when creating a rate:

How Long You’ve Been Driving: Inexperienced or young drivers often pay more for car insurance.

Your Driving Record: Those with accident histories or multiple driving infractions can also expect to pay more for insurance.

Your Credit Score: If you have a poor credit score, you might have to pay more for car insurance.

Your Policy: If you insure more than just your car through your insurance provider, they might have savings or deals. For example, if you get your home and car insurance through the same company, or insure multiple cars and drivers on your policy, you might expect to see reduced insurance rates.

Having insurance on your vehicle is very important for remaining compliant with the law and protecting your vehicle if you’re in an accident. Although Tesla insurance might cost more on average than insurance for other vehicles, you can still save money by comparing quotes from different providers.

FIXD Research Team

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.

We’re here to help you simplify car care and save, so this post may contain affiliate links to help you do just that. If you click on a link and take action, we may earn a commission. However, the analysis and opinions expressed are our own.


About the Author

FIXD Research Team

FIXD Research Team

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.

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