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Everything You Need To Know About Tesla Model S Insurance

tesla model s insurance
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The Tesla Model S is an electric sports vehicle that offers high power and performance. Though this is a fun car to drive, Model S owners may notice higher insurance costs due to its high value and specific requirements. If you’re a Model S owner or you’re thinking of buying one, learning more about different insurance options and why insurance is important can help you navigate the process. Here’s everything you need to know about insuring your Model S.

Why Is It Important To Insure Your Model S?

It’s important to get Tesla Model S insurance because it protects yourself and others. An insurance policy usually requires that you pay a premium monthly, with the agreement that if something happens to your vehicle, the insurance company provides funds to help you seek maintenance or get a new car. Getting the right insurance for your Model S helps you protect the value of your vehicle, guard against unexpected accidents, and shield yourself from financial liability. These are some important reasons to insure your Model S:

  • Mandatory insurance: How much insurance you need for your Model S depends on where you live, but many states require that you have a minimum amount of liability coverage. This helps to protect other motorists in the event that you can’t pay for their damage or injuries.
  • Protect your money: When an accident happens, having insurance on your Model S helps you by having the insurance company take on the responsibility. This means they pay for the damages, keeping your funds safe.
  • Lending and loans: If you take out a loan to purchase your Tesla, the lender may require that you have insurance so they know they’re protecting their investment.

How Much Does It Cost To Insure a Model S?

How much it costs to insure your Model S can depend on factors like the level of insurance you choose, how much you drive, and where you live. Depending on the trim you choose, insuring your Model S may cost between $1,500 and $4,000 per year. Insurance for your Model S can vary depending on how old the vehicle is, how old you are, and your driving habits. Here are some insurance companies and how much they may charge you to insure your Tesla:

  • USAA: $1,648 per year
  • Progressive: $1,721 per year
  • Nationwide: $1,841 per year
  • State Farm: $2,154 per year
  • Allied: $2,276 per year
  • GEICO: $2,747 per year
  • Allstate: $3,857 per year

Cheapest Model S Insurance

When you make the transition from a traditional car to an electric vehicle, you can experience savings from a reduction in fuel costs and maintenance expenses. Though you may save money in these areas, insuring a Tesla Model S can be more expensive, so it’s important to find the cheapest insurance if you want to lower your auto budget.

On average, the cheapest option for Tesla Model S insurance coverage is from USAA. However, USAA is only available to current or retired military members and their families. If you don’t qualify for USAA, then Progressive would likely be your best choice. Be sure to shop around and get quotes from several different companies, though. Your particular situation may result in the best rate coming from one of the more expensive providers on this list. Tesla also offers its own insurance packages for Tesla owners, which may also be the cheapest option for you. Read more about them below.

Why Is the Tesla Model S Expensive to Insure?

The Model S comes with many perks, including power, performance, and savings on fuel. One downside, however, is the cost to insure the vehicle. The Tesla Model S has a higher than average cost for insurance. This is due to several different reasons, including:

  • Repair costs: Because a Model S is a unique vehicle that often requires special knowledge to repair, it can cost more to have maintenance and repairs done. The parts for a Model S may be more expensive than a traditional vehicle.
  • Value: The Model S is one of the more expensive Tesla vehicles you can purchase, and because the value is high, you pay more to protect it. This is because if this vehicle is stolen or breaks down, the insurance company has to pay more to replace it.
  • Collision coverage: Because parts and maintenance are more expensive for the Model S, collision coverage can increase as well. If you total the car or someone hits it, it costs more for the insurance company to repair.

What Is Tesla Insurance?

Tesla Insurance is a policy available to new and current Tesla owners. Tesla created this insurance option because many other insurance companies have higher prices for Tesla vehicles. If you purchase a new Model S or you currently have one, Tesla Insurance may offer you a lower price than many other insurance companies.

Though you must have at least one Tesla vehicle to use Tesla insurance, you can insure other non-Tesla vehicles through the policy. This means if you own several other vehicles and you purchase a Tesla, you can still switch to using Tesla insurance to lower your insurance costs while maintaining coverage for the non-Tesla cars.

Tesla also has an option in locations other than California for drivers to opt into a Real-Time Driving Behavior option. This allows you to record your good driving habits and reduce your Tesla Model S insurance costs by showing you’re a safe driver. Unlike other insurance companies, Tesla does not require you to use additional equipment. Instead, your Model S can track your driving habits and send the information directly to Tesla Insurance. Safe drivers can save between 30% and 60% on their insurance costs when using the Real-Time Driving Behavior option.

Tesla Model S Insurance Availability

Though Tesla Insurance is one of the most affordable options for Tesla drivers, it may not be available to all Tesla owners. Though the company is currently expanding its footprint for insurance, it is currently only available in states including:

  • Arizona
  • California
  • Colorado
  • Illinois
  • Ohio
  • Oregon
  • Texas
  • Virginia

There are many companies you can choose from when insuring your Model S, and choosing the cheapest can help you lower your overall costs. By finding the right insurance policy for your Model S, you can balance affordability, performance, and style.

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.

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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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