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Best Auto Insurance for Tesla in 2026
Nationwide, American Family, State Farm, Allstate, and USAA are our top picks for Tesla.
Best for Model 3
Editor's Rating:
4.8/5
4.8/5
Full Coverage Averages for Teslas
- Annual Premium: $3,177
- Monthly Premium: $265
Best for Model Y
Editor's Rating:4.4/5
4.4/5
Full Coverage Averages for Teslas
- Annual Premium: $3,900
- Monthly Premium: $325
Best for Safe Drivers
Editor's Rating:4.9/5
4.9/5
Full Coverage Averages for Teslas
- Annual Premium: $4,356
- Monthly Premium: $363
Last updated: June 11, 2026
Key Takeaways
On average, Teslas cost $4,625 annually to insure, which is higher than most cars.
Nationwide offers the cheapest average rates for Teslas overall and is also our top pick for Model 3 insurance.
American Family has the best rates for Model Y owners, on average, at $2,592/year.
Our top choice for safe drivers is State Farm, while military drivers may fare best with USAA, and those looking for robust roadside assistance should consider Allstate.
Summary of the Best Auto Insurance for Tesla
- Best for Model 3: Nationwide
- Best for Model Y: American Family
- Best for Safe Drivers: State Farm
- Best for Roadside Assistance: Allstate
- Best for Military: USAA
Comparison of the Best Auto Insurance for Tesla
| Company | Full coverage annual average for Teslas | Minimum coverage annual average for Teslas | J.D. Power Claims Satisfaction1 | GAP coverage |
|---|---|---|---|---|
| Nationwide | $3,177 | $265 | Above average | Yes |
| American Family | $3,900 | $325 | Above average | Yes |
| State Farm | $4,356 | $363 | Above average | If financed with State Farm |
| Allstate | Data not available | Data not available | Below average | Yes |
| USAA | $3,592 | $299 | Above average | If financed with USAA |
| Tesla average | $4,625 | $385 | – | – |
Breaking Down the Best Auto Insurance for Tesla
1. Nationwide - Best for Model 3
4.8
Editor's Rating:
- Average Rate for Minimum Coverage
- $60 mo.
- Average Rate for Full Coverage
- $162 mo.
Cheapest average rates for Model 3- Generous telematics discount
- Pay-per-mile program
Not available in select states- Expensive for teen drivers
Why we chose it
Nationwide is a great choice for auto insurance if you own a Tesla, especially a Model 3. It offers the cheapest average rates for this model after USAA, which is only available to members of the military and their families. It also has the lowest annual premiums, on average, for Teslas in general.
Nationwide ranked fourth in J.D. Power’s most recent Auto Claims Satisfaction study, and according to J.D. Power’s U.S. Auto Insurance Study, it has very high customer satisfaction ratings in Texas and the Central, North Central, and Southeast regions.2 Tesla customers in these regions, in particular, should consider getting a quote from Nationwide.
Drivers who drive fewer than around 8,000 miles per year may benefit from Nationwide’s pay-per-mile program called SmartMiles. With SmartMiles, you get a base rate and a per-mile rate, the latter of which is multiplied by how many miles you drive. In other words, the less you drive, the less you pay.
Who it’s best for
Tesla Model 3 owners, low-mileage drivers, those who want to purchase a policy online
Nationwide Tesla Pricing
| Nationwide | Full coverage |
|---|---|
| Monthly | $265 |
| Annually | $3,177 |
| Difference from Tesla average | -31% |
2. American Family - Best for Model Y
4.4
Editor's Rating:
- Average Rate for Minimum Coverage
- $57 mo.
- Average Rate for Full Coverage
- $182 mo.
- Cheapest average rates for Model Y
- Great bundling discount
- Several young driver discounts
- Limited to select states
- Agent-dependent experience
Why we chose it
American Family is available in 19 states and offers the cheapest average rates for Tesla Model Y owners. However, drivers of other Tesla models may also find below-average rates with the company. For those with financed or leased vehicles, the company offers gap coverage, which not every insurer sells.
American Family has a wide variety of discounts for policyholders to take advantage of, including several specifically for young drivers, such as a good student discount, a student away at school discount, and a young volunteer discount. Children of American Family policyholders are also eligible for savings if they get their own policy with the company.
Homeowners may find a particularly good deal with American Family thanks to its generous discount of up to 40 percent if you bundle home and auto, which is one of the highest discounts out there. You can also bundle auto with other policy types, but the discount will be lower.
Who it’s best for
Tesla Model Y owners, those who want to bundle home and auto, families with young drivers
American Family Tesla Pricing
| American Family | Full coverage |
|---|---|
| Monthly | $325 |
| Annually | $3,900 |
| Difference from Tesla average | -16% |
3. State Farm - Best for Safe Drivers
4.9
Editor's Rating:
- Average Rate for Minimum Coverage
- $53 mo.
- Average Rate for Full Coverage
- $162 mo.
- Discounts for safe drivers
- Strong customer service ratings
- Full coverage policies insure EV chargers
- Must complete quotes by phone
- No accident forgiveness
Why we chose it
State Farm offers slightly below-average premiums for Tesla owners, particularly for the Model S. You might pay more than average, depending on the model year you own and other factors. State Farm also has various discounts that can lower your monthly rates, including for being a good driver, bundling policies, having safety features installed in your vehicle, and being a good student.
State Farm has a generous telematics program, Drive Safe & Save, which tracks your driving habits and rewards you with a discount of up to 30 percent for safe driving, plus an initial discount for enrolling. Unlike some other companies’ programs, Drive Safe & Save will never increase your rates.
For drivers with Level 2 at-home charging stations, State Farm auto policies generally cover this equipment as part of your comprehensive and collision coverages.3 Some other providers will not cover the station or might only cover it under a homeowners policy, so this is a nice perk.
Who it’s best for
Safe drivers, people who have home charging stations, those who prefer to work with a local agent
State Farm Tesla Pricing
| State Farm | Full coverage |
|---|---|
| Monthly | $363 |
| Annually | $4,356 |
| Difference from Tesla average | -6% |
4. Allstate - Best for Roadside Assistance
4.4
Editor's Rating:
- Average Rate for Minimum Coverage
- $58 mo.
- Average Rate for Full Coverage
- $188 mo.
- Affordable 24/7 roadside assistance
- Protection plans and discounts for home EV chargers
- Easy online quotes
- Telematics needed for best savings
- Mixed claims reviews
Why we chose it
Allstate offers a range of coverages, allowing you to customize your policy to your needs. 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.
Allstate offers two roadside assistance plans, which include a tow truck if your Tesla runs out of charge or becomes otherwise undriveable. Allstate also covers common issues you might experience in any car, such as lockouts or flat tires. Additionally, Teslas come with anti-lock brakes and anti-theft technology that will earn you savings.
If you plan to buy another vehicle in addition to your Tesla, you might benefit from Allstate’s car-buying service, which can help you avoid the hassle of negotiating at a dealership. Allstate partners with TrueCar to offer this perk, which provides price transparency, vehicle comparison, upfront pricing, and a trade-in or sell option. Allstate offers this service free to existing customers and advertises an average savings of $2,451 off a vehicle’s MSRP.4
GOOD TO 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.
Who it’s best for
People who want lots of roadside coverage options, drivers who need gap coverage, families with student drivers
5. USAA - Best for Military
5
Editor's Rating:
- Average Rate for Minimum Coverage
- $29 mo.
- Average Rate for Full Coverage
- $106 mo.
- Competitive rates for Tesla owners
- Stellar financial strength ratings
- Offers military-specific discounts and perks
- Military eligibility required
- Limited to members
- Fewer branch locations
Why we chose it
USAA sells insurance to members of all branches of the military, veterans, and their families. USAA is known for its low-cost auto insurance, and its rates for Teslas are no exception. In particular, it 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 $2,338 annually. That’s several hundred dollars less than the next cheapest provider, Nationwide.
Electric vehicles made up 7.5 percent of all light-duty car sales in the United States in 2025, and Teslas are the most popular EVs.5 If you bought a new Tesla in the past three years, you may qualify for USAA’s new car discount.
DID YOU KNOW?
Just under half of new electric vehicles in the U.S. are Teslas.6
Additional discounts include savings for maintaining a clean driving record, bundling policies, and participating in one of the company’s two telematics programs. USAA also offers many other financial services, like retirement accounts and no-monthly-fee banking.
Who it’s best for
Current military members, veterans, and their families
USAA Tesla Pricing
| USAA | Full coverage |
|---|---|
| Monthly | $299 |
| Annually | $3,592 |
| Difference from Tesla average | -22% |
Methodology
We evaluated insurance companies on four key metrics to identify the best auto insurance options for Tesla vehicles:
- Pricing (40%): We looked at average costs for Teslas and discounts for electric vehicles to identify companies that offer competitive rates, using the latest industry research and our own proprietary data. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $100,000 per accident
- Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): We evaluated companies’ claims process—including responsiveness, transparency, and overall satisfaction—based on industry ratings from sources like J.D. Power’s claims satisfaction scores and CRASH Network’s Insurer Report.
- Customer Experience (25%): We assessed the overall customer experience offered by insurance providers for Tesla owners. This evaluation included factors like ease of use, mobile app functionality, and customer service quality. We leveraged third-party data from J.D. Power, the Better Business Bureau (BBB), and the National Association of Insurance Commissioners (NAIC).
- Coverage Options (10%): We considered the availability of coverage options of particular utility to Tesla owners, such as original equipment manufacturer (OEM) coverage and windshield repair.
We use the latest industry research and third-party ratings to evaluate auto insurance providers, as well as feedback from real customers. Read more about our editorial guidelines.
Frequently Asked Questions
Nationwide and USAA offer some of the cheapest car insurance rates for Teslas, at an average of $3,177 and $3,592 per year, respectively.
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. Increased rates of vandalism for Teslas also contribute to higher premiums.
American Family and Nationwide offer the best auto insurance for a Tesla Model Y. You can expect to pay around $4,156 per year, or $346 each month, to insure a Model Y.
A Tesla Model 3 costs an average of $4,098 to insure each year, or about $342 per month. It is the cheapest Tesla to insure. Factors such as age, gender, location, and driving history will determine exactly how much you pay.
Sources
Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, JD Power Finds. JD Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyAuto Insurers Struggle to Maintain Seamless Interactions Across Channels, JD Power Finds. JD Power. (2026, Jun 09).
https://www.jdpower.com/business/press-releases/2026-us-auto-insurance-studyElectric car insurance helps make it easier going green. State Farm. (2026).
https://www.statefarm.com/insurance/auto/electric-car-insuranceFind your next car with ease. Plus, save an average of $2,451 off MSRP* on new cars.. Allstate. (2026).
https://allstateagent.truecar.com/Electric vehicle sales fell as hybrid vehicle sales continued to rise in 2025. eia. (2026, Feb 09).
https://www.eia.gov/todayinenergy/detail.php?id=67144EV Sales Crashed as 2025 Ended. Kelley Blue Book. (2026, Jan 01).
https://www.kbb.com/car-news/ev-sales-crashed-as-2025-ended/
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