Are Tesla Model 3s Expensive to Insure? [Comprehensive Guide]

Average auto insurance rates for a Tesla Model 3 cost $1,802 a year, or around $150 a month. On average, Tesla Model 3 comprehensive insurance coverage costs $439, collision coverage costs $641, and liability coverage costs $508.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Jul 16, 2021

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Key takeaways:

  • Full coverage Tesla insurance costs around $1,802 a year or $150 each month
  • A liability-only Tesla insurance policy costs around $722 a year or $60 each month
  • Highest Tesla insurance rates are for teenage drivers at around $6,586 a year or $549 each month
  • Good drivers can save as much as $743 a year by earning Tesla insurance policy discounts
  • Tesla insurance for the Model 3 costs around $283 more per year than the average vehicle

The cost of insurance can be expensive if drivers don’t take advantage of the savings they can get with insurance discounts, especially when it comes to luxury cars. Some electric vehicles may even need additional coverages because insurance providers know that these models are more expensive than the average vehicle. Tesla Model 3 insurance costs around $283 more per year than the average rate for other vehicles. Our guide dissects Tesla insurance rates and offers saving advice, so read on.

You can start comparing quotes for Tesla Model 3 car insurance rates from some of the best car insurance companies by using our free online tool now.

What does Tesla Model 3 insurance cost?

The average Tesla Model 3 auto insurance costs are $1,802 a year or $150 a month.

The chart below details how Tesla Model 3 insurance rates compare to other electric luxury sedans like the Tesla Model S.

Vehicle Comprehensive Collision Liability Total
Tesla Model 3 $444 $906 $316 $1,802
Tesla Model S $582 $1186 $316 $2,220
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However, there are a few things you can do to find the cheapest Tesla insurance rates online.

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What Impacts the Cost of Tesla Model 3 Insurance?

The Tesla Model 3 trim and model you choose can impact the total price you will pay for Tesla Model 3 insurance coverage.

Age of the Vehicle

The average Tesla Model 3 car insurance rates are higher for newer models. For example, car insurance for a 2020 Tesla Model 3 costs $1,802, while a 2018 Tesla Model 3 insurance costs are $1,744, a difference of $58.

Model Year Comprehensive Collision Liability Total
2020 Tesla Model 3 $444 $906 $316 $1,802
2019 Tesla Model 3 $424 $870 $332 $1,762
2018 Tesla Model 3 $406 $864 $338 $1,744
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Driver Age

The driver’s age can have a significant effect on the cost of Tesla Model 3 car insurance. For example, a 20-year-old driver could pay around $184 more each month for their Tesla Model 3 car insurance than a 30-year-old driver.

Driver Location

Where you live can have a large impact on Tesla Model 3 insurance rates. For example, drivers in Houston may pay $1,328 a year more than drivers in Columbus.

Your Driving Record

Your driving record can have an impact on the cost of Tesla Model 3 car insurance. Teens and drivers in their 20’s see the highest jump in their Tesla Model 3 car insurance rates with violations on their driving record.

What safety ratings does this vehicle have?

Safety ratings will affect your Tesla Model 3 auto insurance rates. One of the perks of being an autonomous vehicle owner is that there is a lot of extra technology in the vehicle that insurance carriers are going to know about that is designed to help keep you safe. It is hard to get into tons of accidents when your car is smart enough to help avoid them.

See the chart below:

Test Type Rating
Small overlap front: driver-side Good
Small overlap front: passenger-side Good
Moderate overlap front Good
Side Good
Roof strength Good
Head restraints and seats Good
Source: Insurance Institute for Highway Safety
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Good Tesla Model 3 crash test ratings can lower your Tesla Model 3 auto insurance rates. See Tesla Model 3 crash test results below:

Vehicle Tested Overall Frontal Side Rollover
2020 Tesla Model 3 4 DR RWD 5 stars 5 stars 5 stars 5 stars
2020 Tesla Model 3 4 DR AWD 5 stars 5 stars 5 stars 5 stars
2019 Tesla Model 3 4 DR RWD 5 stars 5 stars 5 stars 5 stars
2019 Tesla Model 3 4 DR AWD 5 stars 5 stars 5 stars 5 stars
2018 Tesla Model 3 4 DR RWD 5 stars 5 stars 5 stars 5 stars
2018 Tesla Model 3 4 DR AWD N/R N/R 5 stars 5 stars
2017 Tesla Model 3 DR RWD N/R N/R N/R N/R
1-5 Star Rating Scale, N/R = No Rating | Source: National Highway Traffic Safety Administration
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What are the Tesla Model 3 safety features?

The Tesla Model 3 safety features play a vital role in keeping passengers safe in crashes, but they can also help lower your Tesla Model 3 auto insurance rates. The Tesla Model 3’s safety features include:

  • Driver Air Bag
  • Passenger Air Bag
  • Front Head Air Bag
  • Rear Head Air Bag
  • Front Side Air Bag
  • 4-Wheel ABS
  • 4-Wheel Disc Brakes
  • Brake Assist
  • Electronic Stability Control
  • Daytime Running Lights
  • Child Safety Locks
  • Traction Control
  • Blind Spot Monitor
  • Auto-Leveling Headlights
  • Lane Departure Warning
  • Lane Keeping Assist
  • Cross-Traffic Alert

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What should you expect when it comes to the finance and insurance cost?

If you are financing a Tesla Model 3, most lenders will require you to carry stronger policies. Whenever you finance a car, you are required by the lender to carry full coverage auto insurance. With your Tesla, you can expect the same and then some. You will need collision coverage, bodily injury, and other coverages that line up with the minimum car insurance requirements where you live.

When you need to protect more expensive models, you may be faced with an extraordinary insurance cost that you weren’t expecting. Unfortunately, there is more of a burden on owners of these types of vehicles and average car insurance typically doesn’t cut it.

Since you will need comprehensive insurance, you should make sure to shop around and look at multiple insurance estimates and quotes. Insurance agents can also help you determine what insurance products are going to be best for your needs and make recommendations; they will also be able to help you look at vehicle features, facts about your driving history, and other things to see what discounts you qualify for to ensure that you’re getting the lowest insurance prices that you qualify for.

How can you save money on insurance premiums?

If you want to reduce the cost of your Tesla Model 3 insurance rates, follow these tips below:

  • Choose a Tesla Model 3 with Cheaper Repair Costs. This is especially important because these vehicles can’t get service at just any auto body shop; you have to go to one of the Tesla-approved Body Repair Shops in your state.)
  • Understand the Different Types of Auto Insurance for Your Tesla Model 3. Look at the different insurance offerings and their annual rates. Learn about what each of the different insurers and policies has to offer. You can use this information to get the cheapest auto insurance you can while still getting the coverage you need. If you’re willing to look past a typical insurance company, you can find a provider that offers customized insurance policies.
  • Bundle Your Tesla Model 3 Auto Insurance with Home Insurance.
  • Tell Your Insurer About Different Drivers or Uses for Your Tesla Model 3.
  • Choose Automatic Payments or EFT for Your Tesla Model 3 Insurance Policy.

What are the top Tesla Model 3 insurance companies?

Several top car insurance companies offer competitive rates for the Tesla Model 3 rates based on factors like discounts for safety features. Take a look at this list of top car insurance companies that are popular with Tesla Model 3 drivers organized by market share.

Rank Company Volume Market Share
1 State Farm $65,615,190 9.3%
2 GEICO $46,106,971 6.6%
3 Progressive $39,222,879 5.6%
4 Liberty Mutual $35,600,051 5.1%
5 Allstate $35,025,903 5.0%
6 Travelers $28,016,966 4.0%
7 USAA $23,483,080 3.3%
8 Chubb $23,388,385 3.3%
9 Farmers $20,643,559 2.9%
10 Nationwide $18,442,145 2.6%
Source: Insurance Information Institute
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You can start comparing quotes for Tesla Model 3 car insurance rates from some of the best car insurance companies by using our free online tool now.

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