Tesla Auto Insurance Review: Ratings and Quotes (2024)
Tesla Insurance provides telematics-based car insurance for Tesla drivers in select states.
Excellent
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Written byAnna Baluch
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4+ years writing insurance and personal finance content
MBA from Roosevelt University
Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.
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Edited byCourtney Mikulski
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Courtney MikulskiSenior Editor, Auto
3+ years producing insurance and personal finance content
Main architect of the Insurify Quality Score
Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.
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Reviewed byMark Friedlander
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Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
Updated November 20, 2024
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Table of contents
Tesla launched its insurance product, Tesla Insurance, in 2019 to offer coverage to Tesla owners in 12 states.[1] Instead of traditional car insurance rating factors, like driving and claims history, Tesla uses real-time driving behavior to calculate monthly premiums.
Its coverage options include standard policies as well as optional coverages, which vary by state. Here’s what you need to know about Tesla auto insurance and how it compares with other insurance companies.
Quick Facts
Only customers who have insured their Tesla through Tesla Insurance can insure other vehicles with the company.
Tesla uses a telematics-based program to determine premiums in certain states.
Insuring a Tesla costs between $388 and $423 per month on average, according to Insurify data.
What is Tesla auto insurance?
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Tesla entered the insurance industry in 2019, starting off in California.[1] Since then, it expanded to other areas and offers comprehensive coverage and claim management for Tesla owners in 12 states:[2]
Arizona
California
Colorado
Illinois
Maryland
Minnesota
Nevada
Ohio
Oregon
Texas
Utah
Virginia
Find Cheap Car Insurance for Your Tesla
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4.8/5
How does Tesla auto insurance work?
Tesla auto insurance uses a practice called real-time driving behavior in all states where it offers insurance, except California, where the use of telematics is prohibited. Unlike other telematics-based programs, Tesla doesn’t require an additional device installed in your vehicle. Instead, it collects information using features that are already part of the vehicle.
Tesla determines auto insurance premiums based on your vehicle, driving behavior, address, mileage, coverage levels, and the vehicle’s Safety Score. The Safety Score is a mileage-weighted average determined by your driving behavior over 30 days.[2]
Tesla pros and cons
Pros
Premiums based on driving behavior and mileage instead of traditional insurance rating factors
Potentially lower premiums for Tesla drivers
Telematics program integrates seamlessly with Tesla app
Cons
Limited discounts are available and vary by state
Available in only 12 states
Telematics program not available in California
Average cost of Tesla auto insurance
Insuring a Tesla costs between $388 and $423 per month on average, depending on the model. However, Tesla’s insurance policies are a relatively new product, so limited information is available. The best way to determine your Tesla auto insurance price is to get a quote or use a quote-comparison tool to see multiple quotes side by side.
How Tesla rates are calculated
To calculate car insurance rates, Tesla uses a proprietary algorithm called the Safety Score, and how you drive your vehicle affects your score. The Safety Score, which ranges from 0 to 100 (with 100 being the safest), considers these factors:[3]
Unsafe following: Your score will take a hit if you don’t maintain a safe distance from other vehicles.
Excessive speeding: If you exceed 85 mph while driving, you can expect a lower Safety Score.
Late night driving: Driving between 10 p.m. and 4 a.m. may take a toll on your score.
Forced autopilot disengagement: The Autopilot system will disengage and your score will decrease if Tesla determines you’re inattentive or haven’t applied enough resistance to the steering wheel.
Unbuckled driving: Your Safety Score will go down if you drive faster than 10 mph without buckling your seat belt.
Tesla car insurance coverage
Tesla car insurance offers limited additional coverage options, which may give pause to drivers who want extra protection for their electric vehicles. Furthermore, Tesla offers more than one optional add-on only in California. In other states, only gap coverage is available.
Here are the options California Tesla owners have for additional coverage with a Tesla insurance policy:[4]
Total loss deductible waiver: This coverage compensates you for the physical damage deductible if your vehicle is a total loss.
Collision deductible buyback: This covers the collision deductible if an at-fault uninsured or underinsured driver damages your vehicle.
The following coverage is available in all states where Tesla offers insurance:
Gap insurance: This Tesla car insurance option pays the gap between the actual cash value of your vehicle at the time of the incident and what you still owe on the vehicle, if you finance or lease your Tesla. It’s subject to policy terms.
One advantage to having Tesla insurance over other insurance policies is that it offers an autonomous vehicle protection package with every policy. That includes coverage for damage to your wall charger, electronic key replacement, and cyber identity fraud. But it may not be perfect for everyone. If you want to work for a ridesharing service, you won’t receive coverage. Tesla doesn’t offer insurance for any type of driving where your vehicle needs commercial car insurance.
How to get a Tesla car insurance quote
You can request a quote for Tesla car insurance for a new Tesla before delivery. For all other customers, there’s no formal quote process. Instead, you purchase insurance through the Tesla app and can cancel or change coverage anytime by contacting Tesla directly at 1 (844) 34-TESLA.
Important Information
You can insure other vehicles with Tesla insurance, but only if you own a Tesla that you’ve insured through Tesla insurance. If you’re a current policyholder, you can add non-Tesla vehicles to your Tesla policy.[5]
Tesla car insurance discounts
When shopping for any car insurance, you should always look for discounts, and Tesla is no exception. It offers a few discounts that could bring your price down, and the company gives some discounts to all Tesla owners automatically, such as anti-theft device discounts and airbag discounts, since all Tesla cars are equipped with both.
Some of the discounts Tesla offers vary by state, so you may be eligible for the following, depending on where you live:[4]
Multi-car discount: If you have more than one Tesla (or a second vehicle that's not a Tesla) you can qualify for this discount.
Good student discount: This is only available in California. If you’re a full-time college student with good grades, you may qualify.
Group discount: If the Tesla owner is a Tesla employee, you can contact the insurer to add this discount to your policy.
Autopilot discount: Tesla will automatically apply this discount for Teslas with autonomous driving equipped.
Elite driver discount: If you don’t have any moving violations or at-fault accidents in the past five years, Tesla will automatically apply this discount.
Tesla insurance bundling options
Unfortunately, you can’t bundle insurance with Tesla since it only sells car insurance. But you can insure multiple cars with Tesla — they don’t even have to be Tesla cars — and you’ll receive a discount on your insurance. How much of a discount will depend on how Tesla rates you as a driver and may depend on the state you live in and whether you’re insuring two or more Teslas or other non-Tesla vehicles as well.
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Learn More: How Long Does a Tesla Battery Last?
Tesla insurance reviews and ratings
Before you invest in a Tesla insurance policy, it’s a good idea to explore customer ratings and reviews. This way, you can learn more about the customer experience and how Tesla handles complaints and problems.
Tesla customer reviews
Many of the reviews regarding Tesla insurance are poor. Customers are disappointed by the long claims process and slow response times.
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Tesla ratings
Third-party companies often rate the financial strength and credit ratings of insurance companies. Poor performance doesn’t necessarily mean a company is the worst, and high grades don’t always translate to a great customer experience for everyone. Still, these ratings can often tell you something about a company and help customers determine whether they want to work with them.
AM Best: A (Excellent)
Standard & Poor’s: BBB
Moody’s: Baa3
Tesla vs. other car insurance companies
Here’s how Tesla’s car insurance product stacks up against competing insurers.
Insurance Company ▲▼ | Liability Only ▲▼ | Full Coverage ▲▼ | AM Best ▲▼ | IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. ▲▼ |
|---|---|---|---|---|
| Tesla | N/A | N/A | A (Excellent) | N/A |
| GEICO | $54 | $119 | A++ (Superior) | 9.0 |
| Liberty Mutual | N/A | $258 | A (Excellent) | 7.7 |
| Progressive | $98 | $152 | A+ (Superior) | 8.4 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
- Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
- Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
- Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
- Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
- Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
Tesla vs. GEICO
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GEICO, a long-established brand with a solid reputation, offers policyholders various coverage options, such as liability coverage, comprehensive coverage, collision coverage, medical coverage, and uninsured motorist coverage.
The main differences between Tesla and GEICO are that Tesla specializes in Teslas and nothing else, although it does insure non-Teslas. GEICO, unlike Tesla, also offers other types of insurance, including homeowners and pet insurance.
GEICO’s average liability-only rates are $54 per month, and the insurer had solid customer satisfaction ratings in J.D. Power’s 2023 U.S. Auto Insurance Study.[6]
Tesla vs. Liberty Mutual
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Liberty Mutual offers comprehensive, liability, and collision coverages. It has add-on coverages, such as better car replacement and accident forgiveness. If there’s a type of insurance, Liberty Mutual probably has it.
Comparatively, Tesla doesn’t have many of those add-ons and has fewer discounts than Liberty Mutual.
In any case, you could make arguments for going with Liberty Mutual instead of Tesla. If you use Liberty Mutual for your homeowners insurance, your other cars, or your pet, you may want to see if you can bundle your car insurance with your current insurance policy and get a lower rate.
Tesla vs. Progressive
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Progressive offers liability, comprehensive, collision, personal injury protection (PIP), medical payments, and uninsured and underinsured motorist coverages.
While Tesla has poor customer service reviews on Trustpilot, Progressive has slightly below-average J.D. Power ratings in multiple regions.[6] However, Progressive may still be a better option for insurance because of its various discounts and coverage options. Plus, customers can get a quote before they purchase a policy and use its telematics program, Snapshot, to potentially save on their premiums.
How to file an auto insurance claim with Tesla
An insurance claim is a request for financial compensation when you experience a covered loss with your vehicle, such as damage or theft. If you need to file an insurance claim with Tesla, here’s how:6
Use the Tesla app to report your incident. You can call customer service, but Tesla suggests that you use its mobile app, which will guide you through the information you need to report an incident and file a claim. Tap “Account,” then “Insurance,” then “Manage,” and then “Claims.”
Submit the claim. Submit your claim in the Tesla app from the scene, or as soon as possible, so all the information is fresh. Send any photos you have to Tesla, showing any damage. If your car was stolen, you’ll want to submit the police report you filed.
Wait for next steps. You can contact Tesla’s rental car reservation service to request a rental car if your car is undrivable during the claims process. Meanwhile, an adjuster will review your claim and contact you with the results.
Recent quotes for other Insurify users
Recent car insurance prices for Chevrolet, BMW, Toyota, and more. Insurify features quotes from 100+ carriers including Safeco, Kemper Economy, and HiRoad.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Tesla insurance FAQs
You may have questions if you’re considering Tesla car insurance. Here are the answers to common queries about Tesla’s insurance product.
Is Tesla legitimate?
Yes. Despite Elon Musk’s somewhat controversial reputation, the actual company is very legitimate and generally has a very good reputation. Some recent class-action lawsuits — including one involving investment fraud, one about privacy, and another about antitrust issues — haven’t helped its overall reputation though.
Is Tesla car insurance worth it?
It may be. Only you can decide that. If you own a Tesla and like the insurance premiums it offers and what the policy covers — and you feel it beats the competition — you’ll probably think it’s worth it. Tesla claims that its insurance is generally 20% cheaper than policies from other insurers, but again, you’ll want to compare policies for yourself.
What is the average cost of Tesla car insurance?
The average cost of a Tesla car insurance policy depends on the model, but average rates of $388 to $423 per month are normal, according to Insurify data.
Who should get Tesla insurance?
Drivers with one or more Teslas should consider getting insurance from Tesla. While it likely won’t be difficult to get quotes from other insurers — and some of them may have better rates — you may find that it’s easier and less expensive to have your insurance policy with the company that makes your cars.
Is Tesla good at paying claims?
Tesla has an AM Best financial strength rating of A (Excellent), which indicates the company is fiscally solid and can pay its insurance claim obligations.
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Sources
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Anna BaluchInsurance Writer
Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.
Courtney MikulskiSenior Editor, Auto
3+ years producing insurance and personal finance content
Main architect of the Insurify Quality Score
Courtney’s deep personal finance knowledge extends beyond insurance to credit cards, consumer lending, and banking. She thrives on creating actionable content.
Featured in
Corporate communications director for Insurance Information Institute
20+ years in insurance and communications
As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.
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