Are Teslas Expensive to Insure?

Tesla has to be the most innovative company, not just in the automotive market, but really any industry. They are leading an effort to switch over to electric vehicles that even five years ago would have seemed impossible. But with new innovation and technology, comes challenges for consumers and insurance companies to insure these vehicles.

Auto insurance companies are facing new frontiers when writing coverage for this new crop of electric vehicles, and it’s difficult for insurance actuaries to underwrite unknown risks associated with new EV technologies.

We took the data we had and crunched our own numbers to see how Tesla vehicles compare for insurance cost. First, we compared each Tesla model to each other, then we compared each to it’s entire vehicle segment to see how rates compared.

Here are the results.

Tesla Model 3 vs. Tesla Model S

When comparing insurance rates for the 2024 Tesla Model 3 and Model S, the Model 3 costs an estimated $2,818 per year and the Model S is $3,146, making the Tesla Model 3 $328 cheaper overall.

This is probably not an overall fair comparison due to the fact that the Model S costs about $65,000 more than the Model 3. We compared them anyway, just because we can.

Tesla Model 3 vs. Tesla Model X

For the 2024 Tesla Model 3 and Model X models, the Model 3 has an overall insurance rate of $2,818 and the Model X comes in at $3,016, making the Tesla Model 3 $198 cheaper overall.

Ok, again, probably not an apples-to-apples comparison. The Model X stickers at $46,000 more than the Model 3. But again, we compared them anyway.

Tesla Model 3 vs. Tesla Model Y

For the 2024 Tesla Model 3 and Model Y models, the Model 3 has an overall insurance rate of $2,818 and the Model Y comes in at $2,654, making the Tesla Model Y $164 cheaper overall.

Definitely a better comparison here, with the Model 3 just edging out the Model Y. This was expected, as the MSRP on the Model Y is only about $5,000 more than the Model 3.

Tesla Model S vs. Tesla Model Y

For the 2024 Tesla Model S and Model Y models, the Model S has an overall insurance rate of $3,146 and the Model Y comes in at $2,654, making the Tesla Model Y $492 cheaper overall.

Yep, apples-to-oranges on this one too. A difference of $60,000 on the MSRP definitely leaves a gap in the insurance cost comparison.

Tesla Model S vs. Tesla Model X

For the 2024 Tesla Model S and Model X models, the Model S has an overall insurance rate of $3,146 and the Model X comes in at $3,016, making the Tesla Model X $130 cheaper overall.

We thought this one might have been tighter, but again, the $28,000 or so difference in price skewed the cost in favor of the Model X.

Tesla Model X vs. Tesla Model Y

For the 2024 Tesla Model X and Model Y models, the Model X has an overall insurance rate of $3,016 and the Model Y comes in at $2,654, making the Tesla Model Y $362 cheaper overall.

This was actually closer than we thought it would be. With a MSRP difference of over $30,000, we thought the difference in insurance cost between the Model X and Y would be more significant.

Tesla Model 3 vs. Midsize Car Class

The Tesla Model 3 ranks 11^th out of 11 comparison vehicles in the midsize car class. The Model 3 costs an average of $2,818 per year to insure, while the segment average rate is $2,447 annually, a difference of $371 per year.

When compared directly to popular vehicles in the midsize car segment, insurance for a Tesla Model 3 costs $240 more per year than the Toyota Camry, $502 more than the Honda Accord, and $220 more than the Nissan Altima.

It can be debated that the Model 3 belongs in a luxury class, and if it was indeed placed in the luxury midsize class, it would rank right around position 5 or 6 for the segment.

Tesla Model Y vs. Midsize SUV Class

The Tesla Model Y ranks 30^th out of 34 comparison vehicles in the midsize SUV class. The Model Y costs an average of $2,654 per year to insure, while the segment average rate is $2,370 annually, a difference of $284 per year.

When compared directly to popular vehicles in the midsize SUV segment, insurance for a Tesla Model Y costs $150 more per year than the Kia Telluride, $474 more than the Toyota Highlander, and $312 more than the Mazda CX-9.

Again, like with the Model 3, an argument can be made that the Model Y should be ranked with the luxury midsize car class. If it were to be ranked there, along with the Model S, it would roughly at position 18 or 19.

Tesla Model S vs. Luxury Midsize Car Class

The Tesla Model S ranks 26^th out of 34 comparison vehicles in the midsize luxury car class. The Model S costs an average of $3,146 per year to insure, while the segment average rate is $2,944 annually, a difference of $202 per year.

When compared directly to popular vehicles in the midsize luxury car segment, insurance for a Tesla Model S costs $672 more per year than the Lexus IS 300, $430 more than the Infiniti Q50, and $898 less than the BMW M8.

Tesla Model X vs. Luxury Midsize SUV Class

The Tesla Model X ranks 29^th out of 41 comparison vehicles in the midsize luxury SUV class. The Model X costs an average of $3,016 per year to insure, while the segment average rate is $2,850 annually, a difference of $166 per year.

When compared directly to popular vehicles in the midsize luxury SUV segment, insurance for a Tesla Model X costs $52 less per year than the BMW X5, $658 more than the Infiniti QX60, and $22 more than the Audi e-tron.

Tesla Insurance Cost Conclusion

To answer the initial question posed of “Are Teslas Expensive to Insure?”, the answer is definitively yes.

Tesla is a unique beast in the automotive world, and until EVs are more mainstream, insurance for electric vehicles will continue to be higher. Replacement parts are very expensive for Tesla vehicles, as there are no aftermarket options.