Insurance on a Tesla – How Tesla Determines Insurance Rates

The Insurance on a Tesla is the financial protection and coverage purchased specially for the Tesla electric vehicle. Tesla Insurance is a new product and in-house option gaining new purchases.  In 2019, Tesla officially launched their insurance car option to aid the financial struggle faced by Tesla owners. It was designed to help them insure their electric vehicles with so much ease and convenience and save extra cost.

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Moreover, the Tesla insurance is competitively priced and offers Tesla owners up to 20% lower rates. The insurance also functions to leverage the most advanced safety, serviceability, and technology of their cars at great rates. An essential aspect of owning a Tesla is securing the right insurance coverage.

Insurance on a Tesla

What Tesla Insurance is All About

Tesla insurance is a specialized auto insurance option explicitly designed for Tesla owners. While there are other traditional auto insurance policies available, Tesla offers its insurance program to provide coverage that aligns specifically with the unique features and technology of Tesla vehicles.

How Tesla Insurance Works

The Insurance for Tesla uses central driving behavior to quickly determine your car insurance rates for most of the vehicles. With the advanced technology of the electric car, Tesla collects data on your driving habits from your Tesla car without the use of a plug-in device.

Your driving behaviors being tracked include:

  • Excessive speeding
  • How often do you drive at night
  • Hand braking
  • The number of forward-collision warnings
  • How close do you get to the car in front of you

Once this data is collected, Tesla will give you a safety score in the range of 0 to 100, and a higher score means you drive safely. This is the simple technique Tesla uses in determining your insurance rate.

How Tesla Determines Insurance Rates

Here are some of the factors Tesla Company uses in determining insurance rates for you as an owner:

  • The Number of vehicles insured
  • The miles you’ve driven
  • Your vehicle’s Safety Score
  • Your home location
  • The make and model of your vehicle
  • The coverage you purchased

The company doesn’t use well-known factors like age, marital status, credit history, gender, and so on to issue an insurance rate.

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How Much Does The Tesla Car Insurance Cost? 

There are varying prices that the insurance on a Tesla costs and it depends on varying factors like the make and model of the Vehicle. Still, the full coverage insurance for 2022 Tesla vehicles costs about $3,007 per year or $251 monthly.

For Tesla Model 3, it costs an average of $3,209 annually or $267 per month for full coverage.

Tesla Car Insurance Rates By Model

The car insurance rates for Tesla all vary depending on the vehicle’s model and the Make. In most cases, Model 3 and Y are cheaper to insure than Model S or X.

  2020 Model Year 2021 Model Year 2022 Model Year
Model 3 $2,753 $2,813 $3,209
Model Y $2,583 $2,598 $2,804

What Does The Tesla Insurance Cover?

Here are the following factors that the Insurance covers on Tesla:

Collision and Comprehensive Coverage: Tesla insurance covers damages resulting from collisions and comprehensive events such as vandalism, theft, natural disasters, etc.

Uninsured/Underinsured Motorist Coverage: In the event of an accident, a driver lacks proper insurance or has insufficient coverage; Tesla insurance can swiftly provide financial protection.

Rental Car Reimbursement: Some Tesla insurance policies often include coverage for rental cars. This helps with extra transportation costs while your Tesla is undergoing repairs.

Liability Coverage: This feature of Tesla insurance covers bodily injury and property damage liability. Moreover, it offers protection if you are the one at fault in an accident.

What Insurance On Tesla Doesn’t Cover

Here are certain factors or features that are not covered by the insurance on Tesla:

Non-Tesla Vehicles: The insurance on Tesla is only designed for Tesla vehicles. In this case, any other coverage for non-Tesla vehicles may not be included.

Modifications: If your Tesla vehicle is undergoing modifications,  it is advisable to check whether the insurance policy covers these changes before proceeding.

Wear and Tear: If you notice the standard wear and tear on your Tesla vehicle, chances are that it may not be covered. Tesla Insurance mainly focuses on sudden and accidental damages rather than gradual wear and tear.

Commercial Use: If you use your Tesla for commercial purposes like ridesharing, some Tesla insurance policies may not provide the coverage you seek. Commercial use may require additional coverage or a separate policy. Do well to confirm before further decisions.

States Where Tesla Insurance Is Currently Available In

Despite their growing popularity, Tesla Insurance isn’t available in all states but is slowly expanding its reach. Here are the areas where Tesla insurance is available:

  • Arizona
  • California
  • Colorado
  • Illinois
  • Maryland
  • Minnesota
  • Nevada
  • Ohio
  • Oregon
  • Texas
  • Utah
  • Virginia

Still, the Tesla insurance is available for every new Tesla owner to cover their Tesla vehicles.

Top Companies for Tesla Insurance

Here are the top insurance companies you can purchase a Tesla insurance from:

  • Tesla Insurance
  • Progressive
  • Geico
  • State Farm
  • Allstate
  • USAA
  • Travelers
  • Nationwide
  • American Family

You can decide to purchase your Insurance on a Tesla car from any of these reliable Insurance companies.

How to Get Insurance on a Tesla

There are quite a few options available for users to get insurance on their Tesla. Visit Here for full info.

Frequently Asked Questions 

Here are some frequently asked questions you can check out:

Can I Use Tesla Insurance For Non-Tesla Vehicles?

No, you cannot. The Tesla insurance is specifically designed for Tesla vehicles. Any other coverage for non-Tesla vehicles may require a separate insurance policy.

Can I Customize My Tesla Insurance Coverage?

You are open to customize your Tesla insurance coverage if you wish easily.  While its insurance offers specific coverage for Tesla vehicles, the customization options may be more limited than traditional insurance providers.

How Much Is A Tesla? 

A brand new Tesla vehicle may cost from the range of $40,240 to about $108,490. Also, it depends on the trim and model of the vehicle you select. If you want to customize the vehicle’s color and more further, it will increase the price.

Are Tesla Cars More Expensive to Insure? 

In some ways, yes. The cheapest Tesla you can insure is the Model 3, which is about $2,574 per annum. The prices all vary from states and insurance companies and it is up to you to compare to get the best price.

What Insurance Coverage Does Tesla Offer? 

Aside from the main coverage, Tesla also offers collision and comprehensive insurance, gap insurance, roadside assistance, and many more. They all vary from state, though.