Tesla car insurance review: Monthly rates based on your safety score

Woman smiles while considering the option of Tesla Insuurance.Image: Woman smiles while considering the option of Tesla Insuurance.
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Editors’ take: Tesla auto insurance could be an excellent option for Tesla owners living in select states. The insurance is unique in the way it structures its monthly premium. Instead of offering bundling and discount options, Tesla uses its onboard technology to evaluate driver safety. The resulting Safety Score dictates drivers’ premiums on a month-to-month basis. Safe drivers could benefit from Tesla insurance. Tesla insurance is not available everywhere.

Tesla Auto insurance at a glance

Availability Available in select states
J.D. Power customer satisfaction ratingsNot available
Number of complaints in 2021Not available
How to get an insurance quoteVia the Tesla app
How to submit a claimVia the Tesla app


  • Premium based on your driving behavior
  • Manage your policy via the Tesla app
  • Tesla owners can insure non-Tesla cars


  • Not available in every state
  • Limited traditional discounts

What you need to know about Tesla auto insurance

Your premium is based on how you drive

To determine your monthly premium, Tesla considers six factors — your Safety Score, how many miles you drive, the vehicle, where you live, your coverage and how many vehicles you have — to determine your monthly premium. Your Safety Score is determined by your real-time driving behavior, monitored by technology already installed in your car, so there’s no need for a third-party device. Your score at the end of the month determines the cost of your premium for the next month. Insurance using Tesla’s real-time driving behavior technology is not available in California.

Tesla claims the average driver could save between 20%-40% on their premium depending on their Safety Score, and the safest drivers could save up to 60%.

Manage your policy through the Tesla app

Tesla says that current Tesla owners can purchase insurance in as little as one minute on the Tesla mobile app. After inputting your details — including your driver’s license information, address, date of birth and any additional drivers or vehicles you’d like included on your policy — your Tesla insurance card will be available on the app. You can also access your policy documents, make changes to your policy, review your Safety Score, submit a claim, schedule repairs and request roadside assistance right in the app.

Not available in all states

Tesla insurance is available in Arizona, California, Colorado, Illinois, Ohio, Oregon, Nevada, Texas and Virginia. Usage-based insurance using real-time driving data is not available to California drivers.

Auto coverage offered by Tesla

Tesla offers fairly standard car insurance coverage, with a few additional options like roadside assistance, glass coverage and rental reimbursement. Insurance is available for all Tesla Model S, Model 3, Model X and Model Y cars in select states. Tesla owners can also insure their non-Tesla vehicles through Tesla auto insurance. Here’s a look at the auto coverage offered by Tesla:

  • Comprehensive coverage
  • Accident or collision coverage
  • Bodily injury liability coverage
  • Property damage liability coverage
  • Roadside assistance
  • Glass coverage
  • Rental car reimbursement

Auto insurance discounts offered by Tesla

Tesla doesn’t offer specific discounts for insuring multiple vehicles or for being a good student.  

But drivers have the opportunity to save money on their premium by raising their Safety Score, which is updated every month and directly affects their rate. Here are a few ways to improve your Tesla driving score:

  • Maintain a safe following distance from the car in front of you.
  • Avoid hard braking and aggressive turning.
  • Do not tailgate.
  • Keep your hands on the wheel while autopilot is engaged.

Common question: Are Tesla vehicles expensive to insure?

According to the Insurance Information Institute, factors that help determine the cost of your car insurance premium typically include your driving record, car usage, location, age, gender, credit and policy type. The type of car you drive also affects your rate. Because luxury and electric vehicles are typically more expensive to insure than traditional cars, it may cost you more to insure a Tesla.

Common question: Why is EV insurance more expensive?

Insuring electric or hybrid cars tends to be more expensive than traditional cars because of their technology, particularly the battery pack. This pack is more expensive to repair or replace. Fixing electric cars also requires specialized training. There aren’t as many repair shops equipped to fix the parts on electric cars, which can also drive up the bill.

Not sure if Tesla auto insurance is right for you? Consider these alternatives.

  • Allstate: This insurance company offers coverage for electric vehicles, plus discount options.
  • Connect: Costco members get extra perks by buying auto insurance through Connect.

About the author: Sarah Sidlow is a freelance writer and editor based near Detroit. She has a master’s degree in journalism from Georgetown University. Sarah’s work has appeared in Luxembourg’s national newspaper, Washington City Paper… Read more.