Are Teslas Expensive to Insure?

Is Model 3 insurance cheaper than Model Y? Or Model S? We compare and rank all Tesla models against themselves and their competition to see how much insurance costs for a Tesla.

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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 2021 Tesla Model 3 and Model S, the Model 3 costs an estimated $1,688 per year and the Model S is $2,362, making the Tesla Model 3 $674 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.

Get Rates in Your AreaWhy is this important?

Chart Data Details: Average insurance rates are for a 2021 Tesla Model 3 and a 2021 Tesla Model S with safe driver and claim-free discounts applied. Physical damage deductibles are $500 and rates are averaged across all U.S. states. Rates are also averaged for all Tesla Model 3 and Tesla Model S trim levels.
2021 Tesla Model 3 vs Model S Insurance Cost
2021 Tesla Model 3 vs. 2021 Tesla Model S Insurance Cost
Vehicle Make/Model Driver Age 20 Driver Age 30 Driver Age 40 Driver Age 50
Tesla Model 3$3,346$1,788$1,688$1,536
Tesla Model S$4,636$2,508$2,362$2,140

2021 Tesla Model 3

$1,688

Insurance Rates by Trim Level for 2021 Tesla Model 3
2021 Tesla Model 3 TrimsRate
Standard Range AWD$1,538
Long Range AWD1,676
Performance AWD1,858
2021 Tesla Model 3 Average Rate$1,688

2021 Tesla Model S

$2,362

Insurance Rates by Trim Level for 2021 Tesla Model 3
2021 Tesla Model S TrimsRate
Long Range AWD$2,246
Performance AWD2,478
2021 Tesla Model S Average Rate$2,362

Tesla Model 3 vs. Tesla Model X

For the 2021 Tesla Model 3 and Model X models, the Model 3 has an overall insurance rate of $1,688 and the Model X comes in at $2,062, making the Tesla Model 3 $374 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.

Get Rates in Your AreaWhy is this important?

Chart Data Details: Average insurance rates are for a 2021 Tesla Model 3 and a 2021 Tesla Model X with safe driver and claim-free discounts applied. Physical damage deductibles are $500 and rates are averaged across all U.S. states. Rates are also averaged for all Tesla Model 3 and Tesla Model X trim levels.
2021 Tesla Model 3 vs Model X Insurance Cost
2021 Tesla Model 3 vs. 2021 Tesla Model X Insurance Cost
Vehicle Make/Model Driver Age 20 Driver Age 30 Driver Age 40 Driver Age 50
Tesla Model 3$3,346$1,788$1,688$1,536
Tesla Model X$4,100$2,190$2,062$1,874

2021 Tesla Model 3

$1,688

Insurance Rates by Trim Level for 2021 Tesla Model 3
2021 Tesla Model 3 TrimsRate
Standard Range AWD$1,538
Long Range AWD1,676
Performance AWD1,858
2021 Tesla Model 3 Average Rate$1,688

2021 Tesla Model X

$2,062

Insurance Rates by Trim Level for 2021 Tesla Model 3
2021 Tesla Model X TrimsRate
Long Range AWD$2,010
Performance AWD2,116
2021 Tesla Model X Average Rate$2,062

Tesla Model 3 vs. Tesla Model Y

For the 2021 Tesla Model 3 and Model Y models, the Model 3 has an overall insurance rate of $1,688 and the Model Y comes in at $1,964, making the Tesla Model 3 $276 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.

Get Rates in Your AreaWhy is this important?

Chart Data Details: Average insurance rates are for a 2021 Tesla Model 3 and a 2021 Tesla Model Y with safe driver and claim-free discounts applied. Physical damage deductibles are $500 and rates are averaged across all U.S. states. Rates are also averaged for all Tesla Model 3 and Tesla Model Y trim levels.
2021 Tesla Model 3 vs Model Y Insurance Cost
2021 Tesla Model 3 vs. 2021 Tesla Model Y Insurance Cost
Vehicle Make/Model Driver Age 20 Driver Age 30 Driver Age 40 Driver Age 50
Tesla Model 3$3,346$1,788$1,688$1,536
Tesla Model Y$3,916$2,078$1,964$1,786

2021 Tesla Model 3

$1,688

Insurance Rates by Trim Level for 2021 Tesla Model 3
2021 Tesla Model 3 TrimsRate
Standard Range AWD$1,538
Long Range AWD1,676
Performance AWD1,858
2021 Tesla Model 3 Average Rate$1,688

2021 Tesla Model Y

$1,964

Insurance Rates by Trim Level for 2021 Tesla Model 3
2021 Tesla Model Y TrimsRate
Performance$1,950
Long Range1,982
2021 Tesla Model Y Average Rate$1,964

Tesla Model S vs. Tesla Model Y

For the 2021 Tesla Model S and Model Y models, the Model S has an overall insurance rate of $2,362 and the Model Y comes in at $1,964, making the Tesla Model Y $398 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.

Get Rates in Your AreaWhy is this important?

Chart Data Details: Average insurance rates are for a 2021 Tesla Model S and a 2021 Tesla Model Y with safe driver and claim-free discounts applied. Physical damage deductibles are $500 and rates are averaged across all U.S. states. Rates are also averaged for all Tesla Model S and Tesla Model Y trim levels.
2021 Tesla Model S vs Model Y Insurance Cost
2021 Tesla Model S vs. 2021 Tesla Model Y Insurance Cost
Vehicle Make/Model Driver Age 20 Driver Age 30 Driver Age 40 Driver Age 50
Tesla Model S$4,636$2,508$2,362$2,140
Tesla Model Y$3,916$2,078$1,964$1,786

2021 Tesla Model S

$2,362

Insurance Rates by Trim Level for 2021 Tesla Model S
2021 Tesla Model S TrimsRate
Long Range AWD$2,246
Performance AWD2,478
2021 Tesla Model S Average Rate$2,362

2021 Tesla Model Y

$1,964

Insurance Rates by Trim Level for 2021 Tesla Model S
2021 Tesla Model Y TrimsRate
Performance$1,950
Long Range1,982
2021 Tesla Model Y Average Rate$1,964

Tesla Model S vs. Tesla Model X

For the 2021 Tesla Model S and Model X models, the Model S has an overall insurance rate of $2,362 and the Model X comes in at $2,062, making the Tesla Model X $300 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.

Get Rates in Your AreaWhy is this important?

Chart Data Details: Average insurance rates are for a 2021 Tesla Model S and a 2021 Tesla Model X with safe driver and claim-free discounts applied. Physical damage deductibles are $500 and rates are averaged across all U.S. states. Rates are also averaged for all Tesla Model S and Tesla Model X trim levels.
2021 Tesla Model S vs Model X Insurance Cost
2021 Tesla Model S vs. 2021 Tesla Model X Insurance Cost
Vehicle Make/Model Driver Age 20 Driver Age 30 Driver Age 40 Driver Age 50
Tesla Model S$4,636$2,508$2,362$2,140
Tesla Model X$4,100$2,190$2,062$1,874

2021 Tesla Model S

$2,362

Insurance Rates by Trim Level for 2021 Tesla Model S
2021 Tesla Model S TrimsRate
Long Range AWD$2,246
Performance AWD2,478
2021 Tesla Model S Average Rate$2,362

2021 Tesla Model X

$2,062

Insurance Rates by Trim Level for 2021 Tesla Model S
2021 Tesla Model X TrimsRate
Long Range AWD$2,010
Performance AWD2,116
2021 Tesla Model X Average Rate$2,062

Tesla Model X vs. Tesla Model Y

For the 2021 Tesla Model X and Model Y models, the Model X has an overall insurance rate of $2,062 and the Model Y comes in at $1,964, making the Tesla Model Y $98 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.

Get Rates in Your AreaWhy is this important?

Chart Data Details: Average insurance rates are for a 2021 Tesla Model X and a 2021 Tesla Model Y with safe driver and claim-free discounts applied. Physical damage deductibles are $500 and rates are averaged across all U.S. states. Rates are also averaged for all Tesla Model X and Tesla Model Y trim levels.
2021 Tesla Model X vs Model Y Insurance Cost
2021 Tesla Model X vs. 2021 Tesla Model Y Insurance Cost
Vehicle Make/Model Driver Age 20 Driver Age 30 Driver Age 40 Driver Age 50
Tesla Model X$4,100$2,190$2,062$1,874
Tesla Model Y$3,916$2,078$1,964$1,786

2021 Tesla Model X

$2,062

Insurance Rates by Trim Level for 2021 Tesla Model X
2021 Tesla Model X TrimsRate
Long Range AWD$2,010
Performance AWD2,116
2021 Tesla Model X Average Rate$2,062

2021 Tesla Model Y

$1,964

Insurance Rates by Trim Level for 2021 Tesla Model X
2021 Tesla Model Y TrimsRate
Performance$1,950
Long Range1,982
2021 Tesla Model Y Average Rate$1,964

Tesla Model 3 vs. Midsize Car Class

The Tesla Model 3 ranks #11 out of 13 comparison vehicles in the midsize car class. The Model 3 costs an average of $1,688 per year to insure, while the segment average rate is $1,548 annually, a difference of $140 per year.

When compared directly to popular vehicles in the midsize car segment, insurance for a Tesla Model 3 costs $168 more per year than the Toyota Camry, $170 more than the Honda Accord, and $158 more than the Nissan Altima.

Insurance Cost Comparison: Tesla Model 3 vs Midsize Cars
Rank Make/Model Insurance Cost Difference
1Honda Insight$1,380-$308
2Mazda 6$1,408-$280
3Chevrolet Malibu$1,412-$276
4Subaru Legacy$1,500-$188
5Honda Accord$1,518-$170
6Toyota Camry$1,520-$168
7Volkswagen Passat$1,522-$166
8Nissan Altima$1,530-$158
9Kia K5$1,554-$134
10Volkswagen Arteon$1,650-$38
11Tesla Model 3$1,688--
12Hyundai Sonata$1,712$24
13Kia Stinger$1,732$44

Get Rates in Your AreaWhy is this important?

Table Data Details: Average rates are based on 2021 model year, 40-year-old married male driver with a clean driving record and no at-fault accidents. Safe driver and claim-free discounts are applied to policy premium, which is averaged for all vehicle trim levels. Full coverage physical damage deductibles are $500 and rates are averaged for all U.S. states.
Insurance Cost Comparison: Tesla Model 3 vs Midsize Cars

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 #27 out of 27 comparison vehicles in the midsize SUV class. The Model Y costs an average of $1,964 per year to insure, while the segment average rate is $1,497 annually, a difference of $467 per year.

When compared directly to popular vehicles in the midsize SUV segment, insurance for a Tesla Model Y costs $656 more per year than the Kia Telluride, $362 more than the Toyota Highlander, and $408 more than the Mazda CX-9.

Insurance Cost Comparison: Tesla Model Y vs Midsize SUVs
Rank Make/Model Insurance Cost Difference
1Ford Edge$1,274-$690
2Chevrolet Blazer$1,282-$682
3Honda Passport$1,290-$674
4Kia Telluride$1,308-$656
5Volkswagen Atlas$1,318-$646
6Subaru Ascent$1,324-$640
7Nissan Murano$1,370-$594
8Honda Pilot$1,376-$588
9Buick Enclave$1,430-$534
10Hyundai Palisade$1,434-$530
11Subaru Outback$1,466-$498
12Ford Explorer$1,472-$492
13GMC Acadia$1,478-$486
14Chevrolet Traverse$1,488-$476
15Kia Sorento$1,494-$470
16Toyota 4Runner$1,506-$458
17Nissan Pathfinder$1,544-$420
18Mitsubishi Outlander Sport$1,556-$408
19Mazda CX-9$1,556-$408
20Toyota Venza$1,566-$398
21Hyundai Santa Fe$1,578-$386
22Toyota Highlander$1,602-$362
23Dodge Durango$1,642-$322
24Jeep Grand Cherokee$1,666-$298
25Jeep Cherokee$1,708-$256
26Mitsubishi Outlander PHEV$1,714-$250
27Tesla Model Y$1,964--

Get Rates in Your AreaWhy is this important?

Table Data Details: Average rates are based on 2021 model year, 40-year-old married male driver with a clean driving record and no at-fault accidents. Safe driver and claim-free discounts are applied to policy premium, which is averaged for all vehicle trim levels. Full coverage physical damage deductibles are $500 and rates are averaged for all U.S. states.
Insurance Cost Comparison: Tesla Model Y vs Midsize SUVs

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 #30 out of 35 comparison vehicles in the midsize luxury car class. The Model S costs an average of $2,362 per year to insure, while the segment average rate is $2,010 annually, a difference of $352 per year.

When compared directly to popular vehicles in the midsize luxury car segment, insurance for a Tesla Model S costs $680 more per year than the Lexus IS 300, $208 more than the Infiniti Q50, and $222 less than the BMW M5.

Insurance Cost Comparison: Tesla Model S vs Midsize Luxury Cars
Rank Make/Model Insurance Cost Difference
1Acura ILX$1,390-$972
2Lexus RC 300$1,602-$760
3Lexus ES 350$1,650-$712
4Mercedes-Benz AMG CLA45$1,662-$700
5Lexus IS 300$1,682-$680
6Audi A3$1,706-$656
7Cadillac CT5$1,722-$640
8Audi S5$1,788-$574
9Mercedes-Benz E350$1,834-$528
10Lexus ES 300H$1,860-$502
11Audi S4$1,880-$482
12BMW 530i$1,886-$476
13BMW 540i$1,908-$454
14Mercedes-Benz CLA250$1,918-$444
15Genesis G80$1,924-$438
16Audi A6$1,926-$436
17Mercedes-Benz E450$1,954-$408
18Lexus RC F$1,960-$402
19BMW 430i$1,970-$392
20Jaguar XF$1,970-$392
21Mercedes-Benz CLS450$1,990-$372
22Mercedes-Benz AMG C43$2,068-$294
23BMW 440i$2,070-$292
24Audi RS 5$2,090-$272
25Audi S6$2,140-$222
26Infiniti Q50$2,154-$208
27BMW 530e$2,164-$198
28Mercedes-Benz AMG C63$2,256-$106
29BMW M550i$2,300-$62
30Tesla Model S$2,362--
31Audi A7$2,418$56
32Lexus LC 500H$2,454$92
33Audi S7$2,546$184
34BMW M8$2,548$186
35BMW M5$2,584$222

Get Rates in Your AreaWhy is this important?

Table Data Details: Average rates are based on 2021 model year, 40-year-old married male driver with a clean driving record and no at-fault accidents. Safe driver and claim-free discounts are applied to policy premium, which is averaged for all vehicle trim levels. Full coverage physical damage deductibles are $500 and rates are averaged for all U.S. states.
Insurance Cost Comparison: Tesla Model S vs Midsize Luxury Cars

Tesla Model X vs. Luxury Midsize SUV Class

The Tesla Model X ranks #28 out of 30 comparison vehicles in the midsize luxury SUV class. The Model X costs an average of $2,062 per year to insure, while the segment average rate is $1,743 annually, a difference of $319 per year.

When compared directly to popular vehicles in the midsize luxury SUV segment, insurance for a Tesla Model X costs $234 more per year than the BMW X5, $364 more than the Infiniti QX60, and $126 more than the Audi e-tron.

Insurance Cost Comparison: Tesla Model X vs Midsize Luxury SUVs
Rank Make/Model Insurance Cost Difference
1Volvo V60$1,432-$630
2Cadillac XT5$1,466-$596
3Lincoln Nautilus$1,506-$556
4Lexus RX 350$1,532-$530
5Infiniti QX50$1,540-$522
6Jaguar E-Pace$1,550-$512
7Lexus RX 350L$1,578-$484
8Cadillac XT6$1,592-$470
9Acura MDX$1,614-$448
10Genesis GV80$1,640-$422
11Mercedes-Benz GLE450$1,648-$414
12Lincoln Aviator$1,654-$408
13Volvo V90$1,670-$392
14Infiniti QX60$1,698-$364
15Land Rover Discovery Sport$1,706-$356
16Lexus GX 460$1,730-$332
17Mercedes-Benz AMG GLC43$1,774-$288
18Audi SQ5$1,794-$268
19Mercedes-Benz GLE350$1,798-$264
20Land Rover Discovery$1,804-$258
21Lexus RX 450$1,818-$244
22Audi Q8$1,826-$236
23BMW X5$1,828-$234
24Mercedes-Benz AMG GLC63$1,878-$184
25Audi Q7$1,888-$174
26Audi e-tron$1,936-$126
27BMW X6$2,000-$62
28Tesla Model X$2,062--
29Porsche Cayenne$2,114$52
30Mercedes-Benz AMG GLE63$2,224$162

Get Rates in Your AreaWhy is this important?

Table Data Details: Average rates are based on 2021 model year, 40-year-old married male driver with a clean driving record and no at-fault accidents. Safe driver and claim-free discounts are applied to policy premium, which is averaged for all vehicle trim levels. Full coverage physical damage deductibles are $500 and rates are averaged for all U.S. states.
Insurance Cost Comparison: Tesla Model X vs Midsize Luxury SUVs

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.