Cheap Tesla Auto Insurance in 2024 (Save Money With These 10 Companies)

When it comes to cheap Tesla auto insurance, State Farm, AAA, and Progressive offer the lowest rates thanks to their ample discounts and UBI programs.

State Farm earns our top spot thanks to its dedicated electric vehicle (EV) coverage, ample discounts, and the Drive Safe & Save UBI program. The best auto insurance for luxury cars always runs high, and that includes Teslas. However, State Farm average rates of just $79 per month for a Tesla.

Our Top 10 Company Picks: Cheap Tesla Auto Insurance

Explore your options for cheap Tesla auto insurance below. Then, enter your ZIP code into our free comparison tool to see how much you might pay to cover your Tesla.

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#1 – State Farm: Top Pick Overall

Pros

• Solid List of Discounts: State Farm offers 13 discounts to help drivers save. One of the most popular options is the bundling discount for purchasing State Farm home and auto insurance.
• Electric Vehicle Insurance: State Farm offers the best Tesla insurance by including charging equipment and battery replacement in its policies. Learn more about how State Farm covers electric vehicles in our State Farm auto insurance review.
• Competitive Rates: State Farm sets itself apart as the best insurance company for Teslas with its affordable rates.

Cons

• Limited Coverage Options: State Farm has a great selection of coverage options, but they’re not available everywhere. For example, only drivers in select states are eligible for the UBI program Drive Safe & Safe.
• Higher Rates for Bad Credit: If your credit score is on the low side, you’ll probably find better insurance rates at another company.

#2 – AAA: Best Roadside Assistance Plans

Pros

• Roadside Assistance Plans: AAA is known for its roadside assistance plans. It offers a few roadside plans so you can get the best car insurance for Teslas.
• High Customer Loyalty: In part thanks to its customer service and excellent coverage options, AAA has one of the highest rates of customer loyalty.
• Membership Perks: AAA members get access to special savings and opportunities. Explore all the perks of being a member in our AAA auto insurance review.

Cons

• Average Rates: AAA isn’t usually the most expensive car insurance option on the market, but it does run a bit higher than the national average.
• Regional Availability: AAA clubs are regionally managed throughout the country. The coverage options available to you depend on which club you join.

#3 – Progressive: Best for Convenient Online Tools

Pros

• Digital Tools: Progressive makes it easy to manage your coverage with its online tools. You can also find coverage that meets your monthly budget with the Name Your Price tool.
• Snapshot: Snapshot is Progressive’s usage-based insurance (UBI) program that tracks driving behavior. Drivers who practice the safest behaviors can save up to 30%.
• Safety Features Discount: Progressive offers a variety of discounts, including one that rewards you for all of your Tesla’s safety features. Learn more in our Progressive auto insurance review.

Cons

• Snapshot can increase rates. Progressive is one of the few companies that will increase your rates if Snapshot tracks bad driving habits.
• Low Customer Loyalty: Retaining customers is something Progressive has struggled with, even after efforts to improve its customer service.

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#4 – Allstate: Best for Full Coverage Policies

Pros

• Add-on Options: There are plenty of Allstate Tesla insurance options, including accident forgiveness and roadside assistance. See all your coverage options in our Allstate auto insurance review.
• UBI Plans: Allstate offers two UBI programs – Milewise and Drivewise. Drivewise offers a standard UBI discount of 40%, while Milewise is a pay-per-mile plan for low-mileage drivers.
• Extensive Network of Agents: Get help with your Tesla auto insurance whenever you need it through Allstate’s customer service providers. You can speak with a local agent during business hours or call their 24/7 support line.

Cons

• Higher Premiums: Allstate is usually one of the most expensive auto insurance options on the market. If you’re planning on adding a teen driver to your policy, you may want to avoid Allstate.
• Availability Varies: Although Allstate offers excellent full coverage options, you’ll have to check availability before you sign up for add-ons. For example, you can only add rideshare insurance in eight states.

#5 – USAA: Best for Military Families

Pros

• Affordability: Generally speaking, USAA is one of the cheapest auto insurance providers on the market. If you qualify for coverage, USAA will likely have the cheapest insurance for Teslas.
• Specialty Military Coverage: USAA was founded to serve military members, so it should come as no surprise that the company tailors its coverage for the military. Learn how USAA accomplishes this in our USAA auto insurance review.
• SafePilot: Save up to 30% on your Tesla insurance by enrolling in SafePilot, USAA’s UBI program.

Cons

• Eligibility Requirements: Only military members and their direct families are eligible for the necessary membership to buy USAA auto insurance.
• Limited SafePilot Availability: USAA sells insurance in all 50 states, but SafePilot is only available in 47.

#6 – Liberty Mutual: Best for Responsive Claims Service

Pros

• Responsive Claims: Customers agree that Liberty Mutual resolves claims quickly and effectively. See more customer reviews in our Liberty Mutual auto insurance review.
• Diverse Coverage Options: Liberty Mutual offers a variety of unique coverage options, like better car replacement coverage and the Deductible Fund.
• Excellent Discounts: Liberty Mutual offers 17 discounts, including discounts for alternative energy vehicles and safe driving.

Cons

• Inconsistent Customer Service: While its claims process receives excellent reviews, other parts of Liberty Mutual’s customer service leaves some drivers unsatisfied.
• Average Rates: Liberty Mutual usually isn’t the most expensive option, but drivers looking for the cheapest car insurance for Teslas will probably find it elsewhere.

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#7 – Farmers: Best Electric Vehicle Discount

Pros

• Electric Vehicle Discount: Farmers is one of the best insurance companies for Tesla coverage with its 23 discounts, including special savings for electric vehicles.
• Tons of Coverage Options: Farmers’ Tesla insurance reviews report that customers enjoy the different ways they can customize their policies. See what you can do with your policy in our Farmers auto insurance review.
• Excellent Mobile App: Famers policyholders report that the app offers a convenient way to manage policies and start claims.

Cons

• Slow Service: Customers who have purchased Farmers’ roadside assistance report that it can take a long time for help to show up.
• Higher Rates: Although it can sometimes be an affordable option, Farmers doesn’t usually have the best Tesla insurance rates.

#8 – Geico: Best for Affordable Rates

Pros

• 24/7 Customer Service: Geico Tesa insurance representatives are available to help whenever you need them.
• Affordable Rates: Depending on several factors, you may be able to get the cheapest Tesla insurance with Geico. However, you’ll need to compare quotes to see who has the lowest rates for you.
• Discount Opportunities: Geico offers excellent discounts to help drivers save, including unique savings for government employees.

Cons

• Higher Rates for DUIs: Although Geico is usually affordable, drivers with a DUI should look at another company for the best auto insurance for Teslas. See how much you might pay in our Geico auto insurance review.
• Limited Specialized Coverage for EVs: Geico has some of the best Tesla insurance costs, but its policies have limited coverage specifically for electric vehicles.

#9 – Nationwide: Best for UBI Savings

Pros

• Low Rates for Bad Credit: Nationwide isn’t always the cheapest option, but it does offer affordable rates for drivers with bad credit.
• SmartRide: SmartRide drivers can save up to 40% by practicing safe habits behind the wheel. See if SmartRide is right for you in our Nationwide auto insurance review.
• Vanishing Deductible: Save up to $500 on your Nationwide Tesla insurance deductible by signing up for the Vanishing Deductible add-on and remaining claims-free.

Cons

• Limited Agents: Drivers who enjoy a personal touch to their insurance might struggle to find Nationwide agents in their area.
• Rates can be high. Nationwide may offer some of the best Tesla car insurance, but it often comes at a price. Drivers looking for minimum or high-risk auto insurance will probably find better prices elsewhere.

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#10 – Travelers: Best for Unique Coverage Options

Pros

• Dedicated EV Policies: Among its ample coverage options, Travelers offers excellent protection for electric vehicles. Check out all of Travelers’ unique coverage options in our Travelers auto insurance review.
• Excellent Customer Service: Travelers policyholders leave excellent reviews regarding the company’s customer service experience.
• Electric Vehicle Discount: Travelers earns its spot as a best company for Tesla insurance by offering a solid EV discount.

Cons

• Claims Handling Problems: Despite having excellent customer service reviews, drivers are less enthusiastic about Travelers’ claims handling.
• Average Rates: Travelers has some of the best Tesla auto insurance, but the company’s rates aren’t impressive. It’s not the most expensive Tesla auto insurance company, but you can save more with other companies.

Tesla Auto Insurance Rates

Like any other type of vehicle, the amount you’ll pay for Tesla auto insurance varies. Several factors affect your auto insurance rates, but some of the most important are your age, location, driving record, and what type of vehicle you drive. For example, Tesla Model 3 auto insurance rates can be much lower than prices for a Model S.

Although rates can vary significantly, it can be helpful to look at average rates when you’re starting your search for the best insurance for a Tesla. Check the rates below to see how much you might pay with our top Tesla insurance companies.

Tesla Auto Insurance Monthly Rates by Coverage Level

As you can see, some companies offer much cheaper Tesla insurance than others. However, you might see much different rates, depending on your unique circumstances. Price differences are why experts recommend getting multiple quotes, which can be as easy as filling out request forms like the one shown below.

That’s why it’s important to compare rates before you purchase a Tesla auto insurance policy — skipping this step usually leads to overpaying for your coverage.

Tesla Auto Insurance Rates by State

Aside from the model you drive, another important factor for your Tesla auto insurance rates is where you live. Auto insurance rates can change dramatically between states for a variety of reasons. Check below to see how much you might pay for your Tesla coverage in your state.

There are several reasons why auto insurance rates change between states. One of the most important is local car insurance requirements — states with higher minimum insurance laws typically have higher average rates. Other factors include traffic density, vehicle crime rates, weather risks, and accident statistics.

Tesla Auto Insurance Rates by Age

Average auto insurance rates by age vary significantly, with young drivers paying much more than older adults. Insurers charge young drivers higher rates since they’re inexperienced, and more likely to get in an accident and file a car insurance claim. While rates for young drivers are high, they typically go down around age 25 if you’ve kept your driving record clean.

Check below to see how much you might pay for your Tesla insurance based on your age.

Tesla Auto Insurance Monthly Rates for Minimum Coverage by Age and Gender

If your Tesla insurance rates are too expensive, you have several options to find more affordable coverage. However, Telsas are expensive luxury vehicles, which means insurance rates are always higher than coverage for standard vehicles.

Auto Insurance Rates for Luxury Electric Vehicles

While insurance rates for your Tesla may seem steep, they’re consistent with many other vehicles considered similar models. Check below to compare auto insurance rates by make and model from some of Tesla’s biggest competitors.

Auto Insurance Monthly Rates for Luxury Electric Vehicles by Coverage Level

As you can see, Tesla insurance is generally comparable to similar electric vehicles. While Tesla auto insurance rates are higher than what you’d see with standard vehicles, there are plenty of ways to save.

How to Save on Tesla Auto Insurance

Some companies allow you to take a safe or defensive driving class. Once you pass a course, you could be eligible for lower auto insurance rates. Additionally, many car insurance companies offer auto insurance discounts to help you save as much as 25% on your Tesla auto insurance policy. 

Explore your discount options below.

Finding discounts isn’t your only option to save. When you need to find the lowest Tesla car insurance, try the following methods:

• Lower your coverage. The cheapest policy for you will be the bare minimum insurance you need. If you own your Tesla outright, you can save by choosing a minimum insurance policy.
• Increase your deductible. Your deductible is the portion you pay in a claim before your insurance kicks in. Selecting a larger deductible will lower your monthly premium, but you’ll have to pay more if you file a claim.
• Keep your driving record clean. Drivers with speeding tickets, at-fault accidents, and DUIs pay more for their insurance. If you have a mark against you, make sure to avoid additional infractions.
• Choose the right coverage. Adding things like custom equipment replacement or rental car reimbursement can be helpful, but they increase your monthly costs. Only add coverage to your policy that you think you might use.

Of course, comparing quotes is one of the most important steps to take in finding affordable coverage. If you don’t compare your insurance options, there’s no way of knowing which company has the lowest rates for you.

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Buying Coverage From Tesla Insurance

Tesla started an auto insurance option in 2019. According to the company, Tesla owners can save around 20% on their insurance by purchasing coverage with the Tesla company. According to our Tesla auto insurance review, policies are available in the following U.S. states:

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

If you own a Tesla, you can purchase auto insurance for it. The company also offers coverage for non-Tesla vehicles, but only if you own at least one Tesla.

Understanding Tesla Insurance

In every state except California, Tesla uses a telematics-based system to assess drivers’ habits and award them specific rates. Tesla monitors drivers’ habits to determine how safe they are on the road, including:

• Hard braking
• Acceleration
• Sharp turns
• Speeding
• Tailgating
• Distracted driving
• Forward-collision warnings

If you drive safely, obey traffic laws, and avoid distracted driving, your Tesla car insurance rates could be cheap. However, you could pay higher-than-average rates with the company if you have poor driving habits. Learning more about cheap usage-based auto insurance can help you keep your Tesla insurance rates low .

In addition to the safety factors Tesla monitors, the company offers rates based on the following factors:

• Miles driven
• ZIP code
• Vehicle make and model
• Coverage type
• Number of vehicles insured

Tesla doesn’t offer rates for its car insurance coverage online, so you won’t know if the company offers cheap coverage until you speak with a representative about your Tesla car insurance options. 

Comparing Tesla Insurance

Tesla insurance may be a great investment if you live in a state offering Tesla coverage. While the company doesn’t list its average rates online, it says Tesla owners can save significantly on their insurance coverage by using the Tesla company for their policies.

If you live in a state where Tesla coverage is unavailable, you’ll need to find coverage with another company. Compare quotes from several options to see which best suits your needs and budget. You should also learn how to evaluate auto insurance quotes no matter where you live to find the best coverage.

Understanding Tesla Auto Insurance Rates

Teslas are fairly expensive, and your coverage will also be more expensive when you drive a pricey vehicle. Repair costs are one of many non-driving factors that affect auto insurance rates. Keep reading to understand why Tesla auto insurance can be expensive.

Tesla Vehicle Costs

Teslas are considered luxury vehicles, which means you’ll pay more to purchase one. While the costs may be worth it if your budget has room for them, luxury vehicles have higher associated costs. One of those costs is car insurance.

The Tesla Model 3 is its most affordable option. It starts at around $47,000. A Model Y starts at $63,000, a Model S starts at $100,000, and the Tesla Model X costs around $115,000.

Read More:

• Best Tesla Model S Auto Insurance
• Best Tesla Model X Auto Insurance
• Best Tesla Model Y Auto Insurance
• Best Tesla Model 3 Auto Insurance

Although Teslas are more expensive than standard electric vehicles, the price may be worth it. However, keeping in mind the higher costs of repairs and insurance can help you prepare for the future.

Tesla Auto Insurance: The Bottom Line

Several companies offer car insurance coverage for Teslas, but the costs for coverage vary significantly. Since Tesla insurance average costs can be fairly expensive, shop online and compare quotes from multiple companies before making a final decision on your Tesla auto insurance coverage.

As you compare rates, remember that your age, ZIP code, gender, marital status, driving history, and credit score impact your car insurance rates. To find the best auto insurance companies for Teslas, enter your ZIP code into our free comparison tool to see rates in your area.

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