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Icon CheckLast updated: November 9, 2022

Best Auto Insurance for Tesla

We found the strongest rates and coverage for your Tesla.

Best Overall
State Farm Logo

State Farm has a strong history of customer satisfaction, financial stability, and affordable insurance costs for Teslas.

Best for Roadside Coverage
Allstate Logo

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.

Comparison of the Best Auto Insurance for Tesla

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

Summary of the Best Auto Insurance for Tesla

  1. 1.

    Best Tesla Auto Insurance Overall: State Farm

  2. 2.

    Best Tesla Auto Insurance for Roadside Coverage: Allstate

  3. 3.

    Best Tesla Auto Insurance for Discounts: Farmers

  4. 4.

    Best Tesla Auto Insurance for Bundling: Liberty Mutual

  5. 5.

    Best Tesla Auto Insurance for Military: USAA

Detailed List of the Best Auto Insurance for Tesla

1. Best Tesla Auto Insurance Overall - State Farm

What We Like Most:

  • Local agents
  • Rideshare insurance available
  • Discounts for having multiple cars

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

ProsWho It's Best For
  • pro
    Tesla drivers who are looking for some of the cheapest insurance
  • pro
    People who have home charging stations
  • pro
    Customers who want rental car and travel expenses covered
  • pro
    People who want to manage their policies and claims via a mobile app
ConsWho It's Not Best For
  • con
    People who finance or lease their Tesla with a separate lender
  • con
    Customers who live in Rhode Island or Massachusetts, as State Farm no longer sells new policies in these states

Affordable Rates

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:

  • Drive Safe & Save: Save up to 30 percent for good driving habits, plus an initial discount for enrolling.
  • Accident-free: Pay less for maintaining an accident-free record.
  • Good driver: Get a discount if you have had no moving violations or at-fault accidents in the past three years.
  • Defensive driver course: Take a driving safety course on defensive driving and earn savings.
  • Safe vehicle: Get a discount for your Tesla’s features, like its safety rating, passive restraints, and anti-theft technology.
  • Multiple vehicles: Add another vehicle in your household (whether it’s a Tesla or another vehicle) and save.
  • Bundling: Lower your rates by purchasing another State Farm insurance product, like homeowner’s or condo insurance.

Coverage for Your Home Charging Station

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.

Rental and Travel Reimbursement

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:

  • $16 per day for a rental car, up to $400 total.
  • Up to $500 for meals, lodging, and travel expenses if your car sustains damage more than 50 miles from home, as well as a return trip to pick up your car.
  • Up to $500 toward the deductible if you’re involved in a covered-loss accident in a rental car.

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.

2. Best Tesla Auto Insurance for Roadside Coverage - Allstate

What We Like Most:

  • Low rates for teen drivers
  • A+ rating from AM Best means financial stability
  • Great customer service

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.

ProsWho It's Best For
  • pro
    People who want lots of roadside coverage options
  • pro
    Drivers who own new Teslas
  • pro
    Customers who will take advantage of Allstate’s car buying service
  • pro
    Families with student drivers
ConsWho It's Not Best For
  • con
    Military members
  • con
    Customers who are looking for the cheapest rates

Roadside Coverage Options

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.

DID YOU KNOW?


Tesla and other EV manufacturers recommend using a flatbed truck to tow your vehicle. With other tow trucks, the vehicle’s wheels touch the ground and spin during towing, which can damage your inactive battery.5

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

New-Car Discount

Electric vehicles make up 5 percent of total car sales in the United States, and Teslas are the most popular EVs.

FUN FACT


Three out of four new electric vehicles in the U.S. are Teslas.6

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:

  • Your Tesla is the current model year or one year prior.
  • You’re the first person to own the vehicle.

Additionally, Teslas come with these safety features that will earn you savings:

  • Anti-lock brakes
  • Anti-theft technology
  • Passive restraint system

These features make auto theft less likely, meaning there’s a smaller chance that you’ll file a comprehensive claim.

Car Buying Service

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:

  • Price transparency: You’ll see what other people paid for the same vehicle, which can help you establish a fair price.
  • Vehicle comparison: You can compare new and used vehicles on a single online platform, thereby avoiding the hassle of shopping in multiple places.
  • Upfront pricing: You can see how much a vehicle will cost before you go to the dealership.
  • Trade-in or sell option: You get a cash offer to sell or trade in your vehicle while shopping.

Allstate offers this service free to existing customers and cites an average savings of $1,390 off a vehicle’s MSRP.

3. Best Tesla Auto Insurance for Discounts - Farmers

What We Like Most:

  • Good drivers can save money with the Signal app
  • Transportation costs covered when your vehicle is being repaired
  • Roadside assistance available

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.

ProsWho It's Best For
  • pro
    Tesla drivers who are seeking low rates and discounts
  • pro
    People who are looking for a range of coverage options
  • pro
    Customers who want a good mobile app experience
  • pro
ConsWho It's Not Best For
  • con
    People who live in the following locations, where Farmers isn’t available:
    • Alaska
    • Washington, D.C.
    • Delaware
    • Hawaii
    • Maine
    • New Hampshire
    • Rhode Island
    • Vermont
    • West Virginia
  • con
    People who finance or lease their Teslas and need gap insurance

Discounts and Low Rates

In addition to providing low rates from the get-go, Farmers offers a whopping 22 discounts, including the following:

  • Alternative fuel: Drivers of EVs and hybrids in California (where most Teslas are sold) get a 5 to 10 percent discount.
  • Homing device: All Teslas come with a GPS tracker that can locate a stolen car, which will also earn you a discount.
  • Homeowner: Many Tesla drivers own their home, which gets you a discount, regardless of whether you insure your home with Farmers.
  • Multicar: Get a discount for insuring multiple vehicles in your household with Farmers.
  • Vehicle features: Your Tesla comes with anti-lock brakes, an anti-theft system, and passive restraint systems, all of which earn you a discount.

New-Car Replacement

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.

Windshield and Glass Coverage Options

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.)

4. Best Tesla Auto Insurance for Bundling - Liberty Mutual

What We Like Most:

  • Save up to 30 percent with driver monitoring program
  • Cheap average rates
  • Over 2,000 local agents throughout the U.S.

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.

ProsWho It's Best For
  • pro
    People who own their home
  • pro
    Customers who are looking for policy add-ons
  • pro
    People who finance or lease their Tesla
  • pro
    Military members and teachers
ConsWho It's Not Best For
  • con
    Uber and Lyft drivers (no rideshare coverage)
  • con
    People who prioritize customer and claims service

Savings for Homeowners

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.

Many Coverage Options

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:

  • Original-parts replacement: Tesla replacement parts tend to cost more than regular ones, and less-expensive aftermarket parts can be hard to come by (additionally, using non-Tesla parts will void your warranty). Liberty Mutual offers a coverage add-on that ensures you won’t pay extra for using original equipment manufacturer (OEM) parts.
  • New-car replacement: If your new Tesla is totaled within one year and less than 15,000 miles, Liberty Mutual will pay you the amount to buy a brand-new Tesla of the same model.
  • Better-car replacement: In the event you experience a total loss, Liberty Mutual will give you money for a Tesla that is one model year newer and with 15,000 fewer miles on it. This helps you avoid owing more on a totaled car than what it’s worth.

Gap Coverage for Financed and Leased Teslas

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.

5. Best Tesla Auto Insurance for Military - USAA

What We Like Most:

  • Lowest rates for military members, veterans, and their families
  • Rideshare insurance available
  • Usage-based insurance available for low-mileage drivers

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.

ProsWho It's Best For
  • pro
    Current military members, veterans and their families
  • pro
    Drivers who are looking for some of the lowest rates
  • pro
    People who value customer service
  • pro
    Drivers who want great roadside coverage
ConsWho It's Not Best For
  • con
    People who are not affiliated with the U.S. military
  • con
    People who lease or finance their Tesla with a separate lender

Low Rates

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:

  • Maintaining a clean driving record.
  • Garaging your Tesla at a military installation.
  • Taking a defensive driver or driver education course.
  • Tracking your driving with an app.
  • Bundling homeowner’s or renter’s insurance.
  • Owning a Tesla that’s less than 3 years old.
  • Driving fewer miles.

Exceptional Customer Satisfaction

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.

Roadside Assistance

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.

Methodology

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:

  • Proprietary data: For over 20 years, AutoInsurance.com has helped customers find policies that pair great coverage with affordability. As a result, we’ve compiled millions of customer transaction data points. We’ve crunched the numbers to identify which companies offer the best deals to customers, depending on their needs.
  • Public information: We take into account each company’s offerings, perks and bonuses, discounts, and average premiums. We gather information from third-party institutions, including the National Association of Insurance Commissioners (NAIC), Moody’s, the Better Business Bureau, J.D. Power, S&P Global Ratings, and AM Best. We use this information to assess providers’ financial strength, claims satisfaction, and history of customer service.
  • Institutional knowledge: Our team of experts is deeply familiar with each auto insurance provider and its respective pros and cons. We consult with Paul Ford, an industry professional with 30 years in the business, to match customers with their perfect policies. Paul is president of insurance at Centerfield, AutoInsurance.com’s parent company. In the past, he’s worked with companies such as Canadian Access, Bankrate, Capital One Insurance Services, InsLogic, NetQuote, and Datalot.

FAQs

Why is Tesla insurance so high?

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.

What is the best insurance for Tesla Model Y?

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.

How much does it cost to insure a Tesla Model 3?

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.

What is the best insurance for Tesla Model 3?

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.

Citations

  1. Ratings. AM Best. (2022).
    https://ratings.ambest.com/CompanyProfile.aspx

  2. 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

  3. It can be easier being green with electric car insurance. State Farm. (2022).
    https://www.statefarm.com/insurance/auto/electric-car-insurance

  4. Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2022).
    https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings

  5. Everything You Need to Know About Towing an Electric Car. SGT Auto Transport. (2022, Feb 7).
    https://sgtautotransport.com/autoblog/towing-an-electric-car

  6. 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/

  7. 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

  8. Where Borrowers Are Taking Out the Longest Auto Loans. LendingTree. (2021, Nov 1).
    https://www.lendingtree.com/auto/longest-auto-loans-study/