Cost of Tesla Car Insurance (2025)
On average, full-coverage insurance for a Tesla costs $268 per month from standard insurers. Rates from insurance purchased directly from Tesla vary based on real-time driving habits.
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Tesla makes some of the most popular electric vehicles on the market, and with recent price cuts on its Model 3 and Model Y vehicles, Tesla’s sales and popularity continue to climb.1
If you have one of Tesla’s four models and need car insurance, you might pay an average rate of $268 per month for full coverage and $126 per month for liability coverage from standard insurers. Tesla also offers its own comprehensive insurance policy for Tesla owners in certain states, with insurance rates based on your real-time driving habits.2
Average cost of Tesla insurance by model
Tesla insurance costs vary widely depending on the model. If you drive the entry-level Model 3, you’ll likely spend less on insurance than you would for the top-of-the-line Model X, for example. The Model S is the cheapest Tesla model to insure, on average.
In the table below, you can see how full-coverage quotes fluctuate based on the model you drive.
Cheapest Tesla insurance by model
Tesla insurance costs depend on the specific model and whether you choose to purchase full-coverage car insurance or a liability-only policy. In the sections that follow, you’ll see the average car insurance costs from different car insurance companies across each of the five Tesla models.
Tesla’s entry-level car, the Model 3, seats five and offers three options — Rear-Wheel Drive, Long-Range, and Performance. Base prices range from $42,490 to $54,990. The top-priced model is only slightly less than Tesla’s Model Y, which comes with about the same mileage range but has more than triple the cargo capacity and the option to seat seven in the Performance option.
Insurance costs vary widely for the Model 3, with costs ranging from $98 to $263 per month. Hugo has the cheapest car insurance rates for the Model 3, followed by USAA and State Farm.
Tesla’s Model Y comes in three options — the Long Range Rear-Wheel Drive, Long Range All-Wheel Drive, and Performance All-Wheel Drive. Base prices range from $44,620 to $47,720.
These prices are similar to the Model 3 but are significantly less than the Model S and Model X. Insurance costs for the Model Y differ widely among auto insurers, ranging from an average of $87 to $280.
It’s also worth noting that while the Model Y has a slightly pricier MSRP than the Model 3, it’s a bit cheaper to insure. The cheapest insurers for the Model Y are Hugo, USAA, and State Farm.
The Model S is available in two options, Standard and Plaid, with an MSRP ranging from $79,990 to $94,990. Both models seat five and have a range of about 400 miles, which is about 100 miles more than the Model 3. The Model S has limited cargo capacity, which is about the same as the Model 3.
The MSRP for the Model S is similar to the Model X but nearly $50,000 higher than the Model 3 Rear-Wheel Drive. But its insurance costs are lower than the Model 3’s, with average quotes ranging from $107 to $342 per month. Hugo and USAA are the cheapest insurers for the Model S, with a price difference of $39 per month between the two.
Tesla offers its premium model, the Model X, in a Standard and Plaid option. Both have about the same mileage range and come with Tesla’s most spacious cargo capacity, at 88 cubic feet.
The Standard can fit seven passengers and costs $84,990, while the Plaid only fits six people and has an MSRP of $99,990.
The Model X is Tesla’s most expensive model to insure, according to Insurify data, with averages ranging from $121 to $388 per month. The cheapest car insurance companies for the Model X are Hugo, USAA, and State Farm.
The Tesla Cybertruck’s MSRP ranges from $79,990 for the All-Wheel Drive option to $99,990 for the Cyberbeast option. It has a towing capacity of 11,000 pounds and a range of 325 miles. Cybertrucks can accommodate five adult passengers, with two seats in the front and a three-seat bench in the back.
On average, Cybertruck drivers pay $285 per month for full-coverage insurance. Bristol West, Dairyland, and Direct Auto are the cheapest companies for Cybertruck insurance. Below, you can compare average full-coverage insurance quotes from different insurance companies.
Best companies for Tesla car insurance
Insurance for electric vehicles, like Tesla vehicles, typically has a higher cost than gas-powered vehicles. But some insurers, like USAA, offer EV battery coverage, which helps cover the cost to repair or replace a battery.
Choosing the best Tesla car insurance depends on many factors, including your budget, the type of coverage you need, your age, your credit history, your driving record, your marital status, and your location. When shopping around for insurers to cover your Tesla, it’s also smart to look for insurance companies with high customer satisfaction ratings and lower-than-average car insurance costs.
Here’s a closer look at Insurify’s top picks for the best companies for Tesla car insurance.
Best insurer for safe drivers: Nationwide
Best insurer for military members, veterans, and their families: USAA
Best insurer for overall customer satisfaction: State Farm
How to get insurance through Tesla
If you’re already a Tesla owner, you may be able to insure your Tesla (as well as other non-Tesla vehicles) through Tesla Insurance. While Tesla Insurance offers comprehensive coverage and claim management, you have to live in a state where it’s available. These states are Arizona, California (with certain conditions), Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia.
Tesla Insurance is usage-based coverage that uses built-in technology to track your real-time driving behavior and calculate your monthly premium. While your driving habit data is the primary factor in determining what you’ll pay, Tesla also considers how much you drive, where you live, the type of coverage selected, and the vehicle’s Safety Score.
Certain factors, including hard braking, aggressive turning, late-night driving, and following other vehicles at an unsafe distance, affect your Safety Score. The higher your score, the more you can save.
Signing up for Tesla Insurance only takes a minute. You can sign up through the Tesla app. You need to enter some personal information to apply, like your driver’s license number, address, and date of birth.
You can also add more drivers and vehicles to your policy during sign-up. Once you’ve completed your registration, you’ll be able to access your insurance documents and make claims using the Tesla app.
Average cost of Tesla insurance by state
How much you pay for car insurance for your Tesla vehicle depends on where you live. Your insurance company considers your state’s and ZIP code’s location-based risk factors, including population density, crime rates, accident rates, and more.3
Tesla car insurance FAQs
Shopping around for a Tesla car insurance quote can help you find the best options, rates, and plan. Here’s some additional information to help you learn more about insuring your Tesla.
Insurance rates can fluctuate for Tesla drivers, but Hugo, USAA, and State Farm have some of the cheapest car insurance rates for your Tesla. Other insurance companies offering lower-than-average rates include GEICO, Nationwide, and Progressive.
Electric cars, including Teslas, can be more expensive than the average cost of car insurance for traditional cars. But drivers of eco-friendly cars may be able to make up some of the cost through insurance discounts and tax breaks — bringing the rates closer to average car insurance costs.
Your average annual insurance rate will depend on your Tesla vehicle model, whether you qualify for insurance discounts, the insurance company you buy coverage from, and more.
Insurance on a Tesla Model 3 ranges from $98 to $236 per month, depending on the car insurance company and coverage options you choose. For example, USAA quotes average $134 per month, while insurance from Travelers will potentially cost you $270 per month. Your insurance company will consider your driving record, age, location, and more when determining your insurance rate.
Tesla Insurance is available only in Arizona, California (with certain conditions), Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia at this time. The company says it’s adding more states in the near future.
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