Does It Cost More to Insure a Tesla? [Real-Life Example]

One of the most common questions people have during the buying process of a Tesla is, “will my insurance go up with a Tesla?” Well I have 3 years of experience insuring my Tesla, so I’d be happy to answer this question, and bring a nice big sigh of relief to you.

Contrary to popular belief, car insurance costs about the same for a Tesla as it does for any other car. In fact, you may even be able to save money on car insurance by driving a Tesla for several different reasons.

I’ve been driving a Tesla for 3 years now and have personally “shopped around” and compared car insurance quotes. Some quotes were outrageously high, while others were just a couple dollars per month more than my current vehicle’s insurance.

Here’s the problem: There are many articles published online, like this one from Yahoo Money claiming that “Tesla vehicles cost significantly more to insure than other vehicles” but they are written by gathering information from other articles, not from real-life experience.

The issue is that the information in these articles was originally posted several years ago, when insurance for a Tesla USED TO BE expensive (because the vehicles were so new, and it was risky for insurance companies to insure them due to potentially expensive repair jobs.

However, in current times, 2022 to present, insuring a Tesla is just like any other car, and insurance companies have actually learned that they can insure them for cheaper because they have extremely high safety ratings, as well as being very reliable vehicles with low maintenance.

So, now that you know why other articles may be claiming Teslas are expensive to insure, let’s break down how to get the best price for car insurance on your Tesla.

When I shopped around for car insurance, I called all the big names in the industry, Geico, Statefarm, Progressive, etc. I even tried entering my Tesla vehicle information into the quote comparison tools like thezebra.com.

In short, for “above-average” coverage, Statefarm offered the lowest quote coming in at $111 per month. Geico offered the highest quote at $270 per month.

*I should also note that these rates would be even lower if I opted for the GPS tracker unit, “up to 40% lower” said Statefarm, but I requested quotes without the option.

My best advice is to call all the big car insurance companies and get quotes from each. You’ll find some are far cheaper than others for the same coverage.

I do not recommend using quote comparison tools like thezebra.com because they did not yield any affordable quotes, and bombarded me with advertisements afterwards.

The monthly rate from Statefarm is just a couple dollars more per month than my other vehicle, but there is now a potential way to save even more on your Tesla Car Insurance.

Introducing Tesla Insurance… Tesla has been working on a car insurance plan of their own for quite some time now, and they have begun offering it in select states in the US (check your area to see if it’s offered). Tesla insurance works on a “the safer you drive, the cheaper your insurance” style of insurance.

I’m not a huge fan of GPS tracking my driving to save a couple dollars, but at least this would be giving the GPS data to Tesla (who likely already has it) instead of Statefarm or another big car insurance company.

Tesla insurance claims to be 20-30% cheaper than traditional car insurance, so it may be worth looking into if you’re interested in the most affordable Tesla car insurance option.