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We found the strongest rates and coverage for your Tesla.
State Farm has a strong history of customer satisfaction, financial stability, and affordable insurance costs for Teslas.
Allstate’s range of coverage options — in particular, its roadside assistance offerings — sets it apart from the competition.
Insuring a Tesla works the same way it does for any other vehicle, but these electric vehicles are expensive to insure. Expect the rates to be higher than average due to Tesla’s high repair costs. However, by comparing quotes from multiple companies, you can find the lowest insurance premium. We’re here to help you find the best car insurance companies with the most affordable rates for your ride.
Category | #1. State Farm | #2. Allstate | #3. Farmers | #4. Liberty Mutual | #5. USAA |
---|---|---|---|---|---|
What it’s best for | Overall | Roadside coverage | Discounts | Bundling | Military |
Discounts | Driving habits, accident free, good driving history, defensive driver course, vehicle safety ratings, passive restraint, anti-theft, multiple vehicle, multiline | New car, anti-lock brakes, anti-theft, multiline, automatic payment, paperless, early signing, pay in full, responsible payer, safe driver, driving habits | Alternative fuel, multiline, multicar, driving habits, affinity groups, military, paperless, good payer, safe driver, shared family car, defensive driver course for mature drivers, homeowner, automatic payment, pay in full, vehicle safety features, homing device | Homeowner, military, early shopper, driving habits, claims free, violation free, multiline, multicar, preferred payment, online purchase, paperless | Clean record, low mileage, garage at military installation, driving habits, driver education / defensive driver course, multiline, new car, anti-theft, safety features, loyal member |
Emergency road service | Policy add-on (some services included with rental reimbursement) | Policy add-on or membership | Policy add-on | Policy add-on | Policy add-on (can receive assistance even without coverage) |
Our comprehensive review | State Farm review | Allstate review | Coming Soon | Liberty Mutual review | USAA review |
Best Tesla Auto Insurance Overall: State Farm
Best Tesla Auto Insurance for Roadside Coverage: Allstate
Best Tesla Auto Insurance for Discounts: Farmers
Best Tesla Auto Insurance for Bundling: Liberty Mutual
Best Tesla Auto Insurance for Military: USAA
For some of the best Tesla rates, look no further than State Farm. In addition to its affordability, the company is known for its high customer satisfaction and easy claims process. And with State Farm’s A++ rating from AM Best, you’ll never have to worry about the company’s ability to pay for a claim.1
State Farm offers some of the best auto insurance rates, with an average annual cost of $1,419 nationally. You might pay more than that to insure a Tesla, depending on the model you own. But overall, State Farm offers significantly lower rates for Teslas compared with the competition.
Additionally, State Farm has a number of discounts that can lower your monthly rates:
One of the biggest benefits of owning a Tesla is that you don’t have to rely on traditional fuel sources, especially with rising gas prices. Plus, you can charge your car at home rather than going to the gas station.
Although you can charge your Tesla with a regular 120-volt household outlet (“Level 1”), a recent J.D. Power study found that EV drivers are more satisfied with dedicated at-home charging stations (“Level 2”).2 According to Tesla, it can cost around $750 to $1,500 to install one of these stations, and the charging station itself costs $400.
State Farm stands out because your policy can cover an at-home charging station as part of your comprehensive and collision coverages.3 Other providers may not cover the station, or they might require you to purchase homeowner’s insurance to insure the station.
While Teslas require less maintenance than traditional vehicles, they are known for easily sustaining damage in accidents. Even a simple fender bender may necessitate a trip to the repair shop. If your Tesla is out of commission, State Farm has you covered in the meantime.
Customers who purchase rental and travel expenses coverage will benefit from State Farm’s superior offering, which includes the following benefits:
It’s a strong offering, considering most insurance companies only include the cost of a rental car with this type of coverage and require you to buy roadside coverage for additional assistance.
With over 16 million customers, Allstate holds about 10 percent of the private auto insurance market and is the fourth-largest provider in the country.4 The company offers a range of coverages that will keep you protected. Available in all 50 states and Washington, D.C., Allstate is a good choice for your Tesla no matter where in the U.S. you live.
Many Tesla drivers are familiar with “range anxiety,” or the worry of running out of battery before reaching a power station. While Teslas come with a number of features to help you avoid this situation, it’s good to know you’re covered if fears become reality.
Allstate offers three roadside assistance plans, which include a flatbed tow truck if your Tesla runs out of juice or experiences another problem that renders it undrivable. On top of that, All State covers common issues you might experience in any car, such as lockouts or flat tires.
Plan | Roadside Assistance Add-on Coverage | Roadside Advantage | Roadside Elite | Pay-Per-Use |
---|---|---|---|---|
Type | Policy add-on | Membership | Membership | One-time |
Flatbed truck towing | Yes | $150 benefit per tow | $250 benefit per tow | $119 for a 5-mile tow, $5 for each additional mile |
Tire changes | Yes | Yes | Yes | $84 |
Jump starts | Yes | Yes | Yes | $79 |
Lockout service | Yes | Yes | Yes | $79 |
Fuel delivery (if you also own a nonelectric vehicle) | Yes | Yes | Yes | $79 |
RV coverage | Depends on the level of benefits you choose | Not included | Yes | Not specified |
24/7 roadside assists per year | Depends on the level of benefits you choose | 3 | 5 | Unlimited, but you pay for each |
Road hazard | Not included | $100 | $250 | Not included |
Trip interruption (transportation, food, lodging) | Not included | $1,500 | $1,500 | Not included |
Monthly payments for the first year | About $25 | $7 | $12 | n/a |
Membership fees for the first year | $0 | $79 | $149 | n/a |
Renewal pricing for the second year | About $25 | $99 | $169 | n/a |
Electric vehicles make up 5 percent of total car sales in the United States, and Teslas are the most popular EVs.
If you’re one of the many people who bought a new Tesla in the past year, you can benefit from Allstate’s new-car discount. You qualify for this discount if you meet the following criteria:
Additionally, Teslas come with these safety features that will earn you savings:
These features make auto theft less likely, meaning there’s a smaller chance that you’ll file a comprehensive claim.
Ninety percent of households with electric vehicles own other vehicles as well (usually nonelectric ones).7 If you plan to buy another vehicle in addition to your Tesla — maybe for longer road trips, or to tow heavy loads — you might benefit from Allstate’s car buying service.
Car buying services streamline the purchasing process, thus helping you avoid the hassle of negotiating at a dealership. Allstate partners with TrueCar to offer this perk, which provides the following benefits:
Allstate offers this service free to existing customers and cites an average savings of $1,390 off a vehicle’s MSRP.
Founded nearly a century ago by two ranchers who believed farmers deserved to pay less for auto insurance than urbanites, Farmers continues to offer low rates today. It serves 19 million customers (not just farmers anymore!) and has more than 48,000 exclusive and independent agents. It’s a good option for your Tesla.
In addition to providing low rates from the get-go, Farmers offers a whopping 22 discounts, including the following:
The starting price of a new Tesla is over $40,000 and can even creep toward $50,000, depending on where you live. For some models, you might spend six figures. It’s a big purchase, and it’s natural to want to protect it.
Farmers has a number of optional coverages beyond what many insurers offer. One of these is new-car replacement coverage. If your new Tesla is totaled within the first two model years or 24,000 miles, Farmers will pay for a replacement vehicle.
Tesla windshields are more expensive to replace than those of other vehicles, so it may be wise to purchase one of the windshield and glass coverages that Farmers offers. Replacing a Tesla windshield will run you around $1,500, compared with $200 to $400 for other vehicles. That’s because Tesla’s panoramic windshield design has a unique shape and is larger than the windshields on other vehicles.
If your windshield cracks due to something like a falling branch or a wayward golf ball, your comprehensive coverage will pay to replace it. However, you’re still on the hook for your deductible, which can be hundreds of dollars. Farmers has a couple of coverage add-ons that will save you money if your Tesla requires a repair or replacement for windshield or glass.
Coverage name | What you pay to repair or replace windshield/glass |
---|---|
Glass deductible buyback | $100 |
Full windshield and glass | $0 |
Note that you must have collision coverage to purchase additional windshield and glass coverage. Additionally, the extra coverage doesn’t apply to windshield damage sustained in an accident. (Collision coverage will pay for that.)
Another popular auto insurance provider, Liberty Mutual offers a number of coverage options. You’ll save when you bundle it with another policy, particularly homeowner’s insurance.
In general, customers save around 15 percent when they bundle. Additionally, nearly 9 in 10 people who own Teslas own homes, which can translate to savings for auto and home insurance.
Liberty Mutual cites a combined savings of around $950 if you buy both a homeowner’s policy and an auto policy. If you have a Level 2 home charging station, you can protect it on your homeowner’s policy. Additionally, homeowners get discounts on auto insurance even if they don’t have homeowner’s policies with Liberty Mutual.
Liberty Mutual is known for its array of additional coverage options, many of which can benefit you and your Tesla. For example, Liberty Mutual offers these add-ons:
Only around 7 percent of new Teslas are leased, which is low considering that 25 to 30 percent of all new vehicles in the U.S. are leases. However, a recent survey found that Tesla owners take longer loan terms than owners of other vehicles, with an average loan term of about 67 months.8
In general, if you financed your vehicle for 60 months or more (or leased it), it’s a good idea to consider gap coverage. Long loan terms translate to lower monthly payments. That means that, for the first few years, you’ll owe more on the Tesla than what it’s worth, due to depreciation. In the event of a total loss, gap coverage will pay for the difference between the actual cash value of your Tesla (the insurance payout) and the amount you owe the lender.
Buying gap coverage at the dealership tends to be the most expensive route (around $500 to $700 annually), while adding the coverage to your policy will usually increase your premiums by only a few dollars a month (around $40 a year). Not all insurance providers offer gap insurance, so Liberty Mutual may be a good option if you need this coverage.
USAA sells insurance to members of all branches of the military, veterans and their families. It has some of the lowest insurance rates for Teslas. In addition, USAA offers a number of other financial services, like retirement accounts and no-monthly-fee banking. If you’re eligible, we recommend insuring your Tesla with USAA.
USAA is known for its low-cost auto insurance, and its rates for Teslas are no exception. In particular, USAA offers the lowest rates of any insurance provider for the Model 3, one of Tesla’s most popular models. To insure a Model 3 with USAA, expect to pay around $1,300 annually (around $108 per month). That’s a few hundred dollars less than the next cheapest provider’s rate.
For Tesla Models Y, X, and S, expect to pay around $2,100 annually (around $175 per month), which is still very competitive.
In addition, USAA customers can save with these discounts:
USAA is known for its high levels of customer satisfaction. The company received a satisfaction score of 884 from J.D. Power, well above the 835 overall satisfaction score among insurance providers.
Additionally, USAA has a superior rating of A++ for financial stability from AM Best, meaning you can trust this insurer to pay for a Tesla auto claim (which can be pricey). Bottom line: In the event you need to file a claim for your Tesla or interact with a representative for another reason, rest assured that you’ll receive high-quality service.
USAA offers roadside assistance as a policy add-on. If you buy this optional coverage, you won’t have to pay much when you actually use the service. When you call for assistance, USAA will have a service provider arrive within 60 to 90 minutes. You can even receive service if you take your Tesla across the border to Canada.
Service | Cost with coverage |
---|---|
Towing | $0, up to 50 miles |
Winching (for a stuck vehicle) | $0 |
Jump start | $0 |
Lockout | $0 |
Flat tire | $0 (must have a spare tire) |
Fuel delivery (if you also have a nonelectric vehicle) | Contracted rate |
Additionally, USAA is unique in that even if you don’t buy roadside assistance coverage, you can still call for help and you’ll receive assistance at a negotiated lower rate.
When compiling this guide, we focused on finding the best rates, coverage options, and discounts for people who drive Teslas. We take a three-pronged approach:
Tesla insurance is high because Teslas are expensive vehicles to repair and replace. A minor accident can damage the battery, which costs $5,000 to $15,000 to replace, not including labor. Additionally, only Tesla-approved shops can repair Teslas, and fewer mechanics and body repairers know how to work on them.
State Farm and USAA offer the best auto insurance for a Tesla Model Y. You can expect to pay around $2,050 per year, or $171 each month, to insure a Model Y.
A Tesla Model 3 costs about $1,500 to $1,700 to insure each year, or about $125 to $141 monthly. Factors such as age, gender, location, and driving history will determine exactly how much you pay.
USAA and State Farm offer the best rates for a Tesla Model 3. If neither of those is available to you, Nationwide and Progressive offer good insurance for a Model 3.
Ratings. AM Best. (2022).
https://ratings.ambest.com/CompanyProfile.aspx
Electric Vehicle Owners Have Higher Satisfaction with “Next Level” Home Chargers, J.D. Power Finds. J.D. Power. (2022, Feb 24).
https://www.jdpower.com/business/press-releases/2022-us-electric-vehicle-experience-evx-home-charging-study
It can be easier being green with electric car insurance. State Farm. (2022).
https://www.statefarm.com/insurance/auto/electric-car-insurance
Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2022).
https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings
Everything You Need to Know About Towing an Electric Car. SGT Auto Transport. (2022, Feb 7).
https://sgtautotransport.com/autoblog/towing-an-electric-car
Tesla Still Dominant, but Electric Car Competition Heats Up. Kelley Blue Book. (2022, Apr 25).
https://www.kbb.com/car-news/tesla-dominant-electric-car-competition/
Electric Vehicles in Multi-Vehicle Households. Energy Institute at HAAS School of Business at University of California, Berkeley. (2022, Feb).
https://haas.berkeley.edu/wp-content/uploads/WP322.pdf
Where Borrowers Are Taking Out the Longest Auto Loans. LendingTree. (2021, Nov 1).
https://www.lendingtree.com/auto/longest-auto-loans-study/