Tesla’s have exploded in popularity over the last few years. These vehicles have technology that doesn’t have a lot of track record behind it such as Autopilot. So, naturally we often get the question, “How much is car insurance on a Tesla”? According to a NY Times article there have been 3 deaths since 2016. In two of the cases, the drivers failed to stop for tractor trailers, and in the third the vehicle struck a concrete barrier on the highway.
This poses some new challenges for insurance companies. They must figure out how to accurately price car insurance based on limited historical data when it comes to Autopilot.
Let’s get a real quote
I think the best way to compare insurance cost is for me to get a quote to add a Tesla to my current policy. For reference, I’m a 39 year old male, married, homeowner, kids not of driving age yet. The vehicle will not be used for ridesharing. I’m currently insured with Progressive and I have pretty robust coverages as you would expect for an insurance agent.
My current insurance rates
2019 Jeep Grand Cherokee: $89/mo
2015 Nissan Armada: $88/mo
I have Comprehensive & Collision (AKA “Full Coverage” on the streets) with $1,000 deductibles. I have Roadside Assistance and Vehicle Rental Reimbursement on both vehicles and GAP coverage on the Jeep Grand Cherokee.
How much is car insurance on a Tesla?
$120 per month
Wow, ok a little more than I expected. I quoted a 2021 Tesla Model 3. Your rates will depend on where you live, how many miles per year you drive, your age, multi-policy discounts and more. So, for me personally, a Tesla costs about 26% more to insure than my other vehicles. My other vehicles are about $89/mo each vs the Tesla at $120/mo.
Why does a Tesla cost more to insure if it’s safer?
I don’t have the secret rating sauce of insurance companies out there but I have a feeling there are two big reasons.
1. Lawsuits from accidents are more complex and costly.
These cases that involve accidents by drivers using the Autopilot feature are inherently going to be more complex. That could translate into extended court costs and attorney fees.
2. Cost of repairs
Tesla uses cutting edge technology and the raw materials to manufacture that technology could be volatile. For example, the Lithium used in their batteries mostly comes from Argentina, Bolivia, and Chile. These countries are facing issues when it comes to environmental concerns and child labor. The extraction and processing of Lithium, Nickle, Cobalt, and Aluminum used for these batteries is mostly controlled by China.
Hopefully, my quote will help you get an idea of what you can expect your insurance cost to be if you’re considering buying a Tesla. If you want to compare rates from dozens of companies to find what is best for you, give us a shot. We’ll show you the most competitive options without you having to get spammed by 10 different companies. Start quotes here.