Thanks to their eco-friendly design, Tesla’s are in high demand. However, car insurance on a Tesla certainly isn’t low cost, which is inconvenient but it makes sense given that they’re pricey vehicles that are also expensive to maintain and repair.
But that doesn’t mean you can’t find affordable Tesla car insurance to suit your needs, especially since Tesla is continuously focusing on finding ways to reduce car insurance for their models.
Keep reading to find out the true cost for car insurance on a Tesla and how to reduce it to save you in the long run.
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Before we dive into car insurance on a Tesla, it’s important to understand why insurance for electric cars is higher than gas vehicles. It’s not offered by all providers yet, since electric vehicles are still relatively new and cater to a niche market. You may also need to purchase additional liability coverage for potential issues with the charging cables, charging stations, and more.
Insurance for electric cars can also be higher for the following reason:
Tesla auto insurance is particularly expensive in terms of electric car insurance because it’s a high end make that requires extensive training to repair. This means that insuring them is also more expensive. Even minor collisions can mean thousands of dollars in repairs for Tesla models, which means they’re riskier to insure in the eyes of insurance providers.
Insurance for electric cars can vary significantly and all the same, factors that affect regular car insurance can affect your electric vehicle insurance, such as age, make/model, driving record, and more. Electric auto insurance can range from the same as standard auto insurance to thousands more per year.
Generally, the cost of Tesla auto insurance is similar to regular vehicles but can be higher. It can vary depending on which model and trim of Tesla you choose, so it’s sometimes worthwhile to compare quotes for different Tesla models before you choose the vehicle you want to buy.
The newest Tesla model, Model Y, is actually the least expensive model to insure (although not the least expensive model to buy) along with the Tesla Model 3. The Model X is the most expensive to insure. The trim you choose can also impact your Tesla insurance quote, depending on the provider.
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The best car insurance for Tesla models will be the one that fits your budget and gives you the coverage you need. Despite high safety ratings, Tesla models and electric vehicles are expensive to insure, but for many, this cost is worth it for the benefits of an electric vehicle. Though not every provider offers electric auto insurance, make sure to compare quotes from multiple providers to get the best possible coverage.
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Yes, you’re required to have car insurance on all vehicles, including electric. The process of getting electric car insurance is the same as for gas-powered vehicles.
Tesla models are more expensive to insure than other makes for a few different reasons: they’re a pricier vehicle to start with, repairs and parts are more expensive, and not everyone can repair Tesla models, which means they can charge more.
Hollay Ghadery Hollay Ghadery is a writer and editor who is passionate about financial literacy as a means to personal fulfillment. Hollay has over 18 years of experience creating content about a range of topics related to personal finance, including insurance, investing, banking, and credit cards. When Hollay isn't writing, she's spending time with her four children, two dogs, and three goats.
