If you currently own or are considering purchasing one of Tesla‘s award-winning electric vehicles, no doubt insurance premium costs are an important factor. Tesla models require significantly higher insurance coverage compared to conventional vehicles. This comprehensive guide examines precisely how much you can expect to pay per model based on hard insurance industry data. Read on to demystify the costs!
Why Teslas Cost More to Insure
Premium electric vehicles like Teslas get classified in higher insurance brackets due to advanced technology features that:
- Increase repair bills from damage
- Carry higher replacement part costs
- Raise the value of the vehicle itself
Specifically, expenses like battery pack replacements ($5,000 to $15,000) and sensor recalibrations push up shop charges substantially. Tesla-certified body shops also command higher labor rates given the specialty training required.
Additionally, the cutting edge collision avoidance systems these vehicles boast help prevent accidents when functioning properly. But fender benders can mean pricier bills from damaged or disabled cameras, ultrasonic sensors, and radar equipment.
Finally, the lower production volume and aluminum-intensive construction limits availability of lower-cost aftermarket and salvaged components. All combined, these facets make Teslas far costlier to repair after accidents.
Average Yearly Premiums By Model/Version
So how much extra does Tesla ownership tack onto your annual insurance tab? Here are the average prices by model drivers pay for full collision and comprehensive coverage:
| Model | Overall Average |
|---|---|
| Model 3 | $2,547 |
| Model S | $4,318 |
| Model X | $4,275 |
| Model Y | $2,648 |
| Roadster | $1,865 |
| Cybertruck* | $4,800* |
| Semi Truck* | $3,000-$5,000* |
**Asterisk notes estimated rates for unreleased models
Clearly the deprecated Roadster carries the lowest premium tag thanks to plentiful shared parts with the Lotus Elise. The unibody Model 3 and crossover Model Y also minimize expenses comparatively.
But intense performance variants like forthcoming Cybertruck or Semi Truck could carry astronomical insurance costs, likely over $5,000 annually. Those sky-high premiums result directly from cutting edge battery capacities and torque levels that leave little margin for error.
Now let‘s examine rates for individual model versions that alter prices significantly:
Model 3 Insurance
The Model 3 sits squarely in the middle as far as Tesla premium costs. Drivers with clean records see average annual premiums of $2,547.
Rear-wheel drive Long Range and Standard models are least expensive, ringing up $1,300 to $3,250 yearly for full coverage depending on location. Their lower horsepower caps accident risk.
Performance versions with faster 0-60 mph sprints courtesy of larger batteries and dual motor AWD add roughly $100 to yearly costs on average.
Long Range AWD variants land smack between the two thanks to better handling in inclement weather.
So choosing lower horsepower at purchase can avoid bigger premium penalties down the road.
Model S Insurance
The flagship luxury Model S turns up the cost dial to the tune of $4,318 per annum on average. Yearly premiums often fall between $2,200 and $8,000 though depending on your age and address.
Dual Motor AWD configurations rank cheapest to cover at a base of $2,243. Their clean safety record and lower maximum speed keeps a lid on expenses.
Model S Plaid needs big dollars for coverage however. The 1,020 horsepower hypercar-slayer routinely costs $500+ more annually for garaging thanks to monster torque figures and higher vulnerability in collisions.
In California, that Model S Plaid will drain your bank account to the tune of $8,000 annually. Compare that to $6,200 in New York. So West Coast locales with higher accident volume and repair labor command a premium.
Model X Insurance
Owning the exotic Model X crossover means budgeting $4,275 per year on average for comprehensive and collision. Early production issues may contribute to its higher costs.
Dual Motor AWD versions secure the lowest rates ($1,817-$5,280) thanks to a lower peak horsepower threshold than triple-motor Plaid. Any fender bender means lower severity and repair bills.
Despite a $10,000 higher sticker price, the Model X Plaid tacks on roughly $1,000 per year over the AWD. Why? A acceleration and higher top speeds once again heighten accident risk.
As with the Model S, California emerges least affordable ($6,729 annually) while New York rings up cheaper premium charges ($3,785). That sizable gap directly relates to more congested CA roads.
Model Y Insurance
Sharing 75% of components with the Model 3, the compact Model Y crossover averages $2,648 annually for coverage. It slots as second most affordable Tesla model overall.
Both Long Range and souped up Performance variants cost very similar amounts yearly since body architecture stays the same. You may save $100 or so for the entry Long Range. But feature adds like tow packages can quickly even those rates.
National General, State Farm and Travelers offer some of the most competitive premiums to Model Y shoppers looking to save. Allstate and Farmers historically charge higher rates across driver age groups however.
Roadster Insurance
The stunning Roadster offers a rare bright spot, with average premium costs of just $1,865 per year. Chalk that up to far lower production volume than other Tesla models and the Lotus underpinnings it shares. There‘s also been no major design changes in over a decade to radically alter replacement part costs. So insurance companies face less financial risk covering Roadsters.
Expect the next-generation Roadster penciled in for 2023 to shatter that affordable insurance status however. With laryngitic acceleration from 0-60 mph in just 1.9 seconds and a top speed north of 250 mph, premiums will turn eye-watering in a hurry.
Cybertruck Insurance
Slated to begin production later in 2023, Tesla‘s angular Cybertruck already racked up over 1 million pre-orders. But early insurance quotes peg average annual premium costs around $4,800 – more than double the price to cover comparably priced trucks like the Ford F-150.
The Cybertruck‘s exotic stainless steel exoskeleton design promises better passenger safety. But that avant-garde styling means pricier replacement body panels. And with up to three motor variants offering ridiculous torque levels, sheer speed caps accident severity – and pays out bigger claims.
All this factors may push Cybertruck premiums into uncharted territory surpassing any production pickup.
Tesla Semi Insurance
Another forthcoming model for 2023, stark uncertainties cloud insurance premium forecasts for the Tesla Semi heavy duty truck. But industry sources expect annual rates between $3,000 and $5,000 based on conventional semi classifications.
Comparable diesels often pay less than $4,000 yearly for full commercial coverage. Yet with a 500+ mile range courtesy of a mammoth megawatt-hour battery pack, sprites acceleration, and unusual Center Driver seating format, underwriting the Semi represens an entirely new paradigm for insurers.
Once real-world testing begins, the advanced technologies Tesla stuffed into the Semi coulddrive rates significantly higher into uncharted territory. Only time will tell, but conventional truck experience may prove irrelevant.
Strategies To Minimize Tesla Insurance Costs
While Tesla ownership currently carries higher insurance premium penalties, smart strategies exist to blunt some of that financial pain:
Leverage safety discounts – Insurers reward vehicles with advanced collision avoidance technologies and high safety ratings. So be sure to ask for any discount available. Over time even more savings for self-driving features will enter play.
Slash mileage – Because they cost more to repair after crashes, insurance carriers incentivize less driving by cutting premiums for under 5,000 miles annually. Garaging at a secondary residence helps too.
Bundle home & auto – Combining multiple policies with one carrier typically yields sizable savings over 15% off your total premium. DO NOT shop home and auto piecemeal!
Explore Tesla Insurance – Available in an increasing number of states, Tesla‘s own insurance offering factors in real-time driving behavior and other variables for custom pricing. Savings can reach a whopping 60%!
Raise deductibles – By shouldering more up-front risk if an accident does happen, much lower premiums result from $1,000 or higher collision/comprehensive deductibles. Just be ready to pay those out-of-pocket costs!
Maintain stellar records – Avoiding tickets or accidents for 5+ years earns you steep preferred driver discounts from most insurers. Monitor your credit as well since that further dictates premium charges in many states.
Finding the optimal insurance partner for your Tesla while fine-tuning available discounts offers the best way to defray higher costs. Prioritize bundling, low mileage and the highest deductibles you can afford. Follow those tips and you‘ll keep premiums as painless possible!
