Buying or leasing a vehicle can be an exciting experience that involves researching different brands and models, visiting dealers and showrooms, and even choosing your exterior paint color. With all the fun comes the need for responsibility, which is where auto insurance factors in. It’s important to have quality car insurance to protect yourself and your assets in case of an accident, theft, or damage from severe weather. The Tesla Model Y is a seemingly ideal all-electric SUV, but finding an insurer and plan that protects its value properly can be a challenge.
Read on to learn more about the Model Y, how much it can cost to insure, how its cost compares to other cars, and how some of its standard features can reduce insurance rates.
What Is the Tesla Model Y?
The Tesla Model Y is an all-electric crossover SUV. It’s available in two trim levels: Long Range and Performance, with the former offering up to 330 miles of range and the latter 303 per charge. The Model Y comes standard with two rows of seating for up to five passengers, although buyers can add a third row that boosts the passenger count to seven. This vehicle features a long-range battery and standard dual motor all-wheel drive that makes the driving experience smooth as can be.
The Performance trim has an impressive acceleration rate of 0 to 60 miles per hour in 3.5 seconds, while the Long Range can do the same in 4.8 seconds. Like all Tesla vehicles, the Model Y is all-electric and, therefore, a better environmental alternative than traditional fuel-powered vehicles. The Model Y has an EPA-estimated rating of 131 miles per gallon equivalent (MPGe) in the city and 117 on the highway on the Long Range model. Comfort and convenience features on the Model Y include heated seats, a 13-speaker audio system, LED fog lamps, and a tinted glass roof.
How Much Does Tesla Model Y Insurance Cost?
The Tesla Model Y costs, on average, $3,057 per year to insure, according to ValuePenguin. Compared to other brands, Teslas are more expensive to insure because of their high repair and maintenance costs. Tesla repairs can only take place at Tesla-approved body repair shops, limiting access to more affordable repair options. Electric vehicles are more expensive to repair overall, as their internal computer systems can be much more sensitive than that of a standard fuel-powered car.
While you might have to pay higher premiums as a Tesla driver, various other factors can affect your insurance rates, including:
- City and state: Your location can have a big impact on how much you have to pay in insurance premiums, as areas with higher populations tend to have increased traffic and, therefore, more collisions. Similarly, if you live in a rural area with a low risk of accidents, your monthly premiums might be lower.
- Age: Most insurance companies charge higher rates for younger drivers, especially teenagers and drivers in their early 20s. This is because of their lack of experience on the road, which tends to cause more accidents resulting in physical damage to the vehicle, such as hitting curbs or poles.
- Credit history: Another factor that can influence how much an insurance company charges you for your monthly rates is your financial history, most specifically your credit score. Insurance companies analyze credit scores to determine how much risk each potential client brings with their business, as individuals with low scores often have a history of being late on payments or being in debt.
- Driving record: Your driving history can also make your car insurance premiums higher or lower, regardless of the vehicle you drive. People with a record of safe driving and few accidents or traffic violations can often score discounts on their monthly premiums, as their attentiveness on the road will likely cost the insurer less.
How Does Tesla Model Y Insurance Cost Compare Among Companies?
According to ValuePenguin, the Tesla Model Y is the cheapest Tesla model to insure. The website also reports the average cost of insurance for any Tesla vehicle is $3,947, making the Model Y almost $1,000 less in annual insurance fees than other Tesla models. Here are some of the most popular auto insurance companies in the country and their average annual rates for covering a Tesla Model Y, according to MoneyGeek:
- Progressive: $1,631 per year
- State Farm: $2,044 per year
- USAA: $2,099 per year
- GEICO: $2,436 per year
- Allstate: $4,407 per year
- Nationwide: $5,249 per year
Prices for Model Y coverage vary substantially from company to company. It’s important to acknowledge how factors such as those mentioned above impact monthly premium rates for car insurance.
Tips for Saving on Tesla Model Y Insurance Costs
Here are some tips to help you save money on your monthly or annual car insurance rates:
- Shop around. Contact different insurance companies to get free quotes, and compare your options before committing to a policy or an insurer.
- Look for discounts. Research different discounts you might be eligible for, such as safe driver, good student, or senior discounts.
- Pay upfront. Ask your insurance agent about paying your premium in full, which can help you save on your overall insurance rate.
- Look into the Tesla Insurance plan. This plan doesn’t account for factors such as driving history, credit, or age, although it’s only available in eight states: Arizona, California, Colorado, Illinois, Ohio, Oregon, Texas, and Virginia.
As you maneuver through your car-buying journey, it’s important to dedicate the proper time and effort toward finding a quality insurance company and policy to protect you and your new asset. If you choose to invest in a luxury vehicle like the Tesla Model Y, it’s important you can afford that investment should you experience unforeseen circumstances such as accidents, weather damage, vandalism, or theft. With a quality insurance policy in your back pocket, you can feel confident navigating through life with your all-electric Model Y for years to come.
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.
