Formed in 2003 by Martin Eberhard and Marc Tarpenning (no, Elon Musk did not start Tesla), Tesla focuses on electric vehicles and clean solar energy.
The success of Tesla has spurred other automakers to adopt electric and hybrid powertrains in order to capitalize on the green movement.
The first Tesla model was the Roadster back in 2009 (famously launched into space), followed by the Model S in 2012, the Model X in 2015, the Model 3 in 2017, and the Model Y in 2020.
One question a lot of people have is how much will insurance cost on a Tesla? Do electric vehicles cost more to insure due to a massive battery or cost less to insure due to the lack of a combustion engine?
We compare average car insurance rates for all Tesla models and see how overall average rates compare to most other automakers.
How much does Tesla insurance cost?
Average car insurance cost for 2023 Tesla models ranges from $1,850 per year for the Tesla Model 3 to $2,778 per year for the Tesla Model S.
When all Tesla models are averaged, the average insurance cost for the brand is $2,224 per year. This is $496 more per year than the U.S. average cost of car insurance of $1,728.
The table below shows average annual and monthly car insurance rates for the different Tesla vehicle models.
| Model | Annual Cost | Monthly Cost |
|---|---|---|
| Tesla Model 3 | $1,850 | $154 |
| Tesla Model S | $2,778 | $232 |
| Tesla Model X | $2,242 | $187 |
| Tesla Model Y | $2,026 | $169 |
Is Tesla insurance expensive?
Tesla is one of the more expensive automotive brands to insure. When compared to other popular luxury brands, the average cost of Tesla insurance is $193 more per year on average than Acura, $158 more than Lexus, $208 less than BMW, and $256 less than Mercedes-Benz.
When compared to non-luxury automakers, the insurance cost difference really increases. Compared to Honda, the average cost of Tesla insurance is $568 more. It’s $394 more than Toyota, $398 more than Ford, and $426 more on average per year than Chevrolet.
The next chart shows the average cost to insure a Tesla ($2,224 per year) compared to other luxury automotive brands.
Tesla insurance rates are comparable to German luxury brands, but tend to be higher than Asian luxury brands.
The next table is more of a comprehensive comparison between Tesla and the rest of the industry. It includes all popular luxury and non-luxury automakers.
Brands that are cheaper to insure than Tesla are indicated by a green difference value. Brands that are more expensive to insure than Tesla are indicated by a red difference value.
| Automotive Brand | Insurance Cost | Difference |
|---|---|---|
| Tesla | $2,224 | -- |
| Acura | $2,031 | -$193 |
| Audi | $2,334 | $110 |
| Cadillac | $1,910 | -$314 |
| Chevrolet | $1,798 | -$426 |
| Ford | $1,826 | -$398 |
| Genesis | $2,102 | -$122 |
| GMC | $1,880 | -$344 |
| Honda | $1,656 | -$568 |
| Hyundai | $1,768 | -$456 |
| Infiniti | $2,183 | -$41 |
| Jaguar | $2,171 | -$53 |
| Jeep | $1,965 | -$259 |
| Kia | $1,759 | -$465 |
| Land Rover | $2,201 | -$23 |
| Lexus | $2,066 | -$158 |
| Lincoln | $1,976 | -$248 |
| Mazda | $1,638 | -$586 |
| Mercedes-Benz | $2,480 | $256 |
| Mitsubishi | $1,834 | -$390 |
| Nissan | $1,775 | -$449 |
| Rivian | $2,235 | $11 |
| Subaru | $1,661 | -$563 |
| Toyota | $1,830 | -$394 |
| Volkswagen | $1,689 | -$535 |
| Volvo | $1,928 | -$296 |
Judging by the lack of red values in the table above, the cost to insure a Tesla on average is pretty high.
However, it’s more important to compare rates for individual models rather than relying on overall brand comparisons. If you’re insuring a Model 3, you’ll find rates are much cheaper than a Model S or Model X.
In addition, some companies are more affordable than others when insuring electric vehicles. It’s important to shop around and get Tesla insurance quotes from multiple carriers before making a purchase decision.
