We pulled car insurance quotes from top insurance companies to find that the average monthly cost to insure a Tesla Model 3 is $243.37 — or $2,921.64 a year. However, other models may cost less to insure than others depending on which safety features your vehicle has and which insurer you choose. And your actual costs will depend on your driving history, age, ZIP and other specific factors.
Model Year
Progressive
Geico
State Farm
Farmers
Average
2017 Tesla Model 3
$177.42
$187.16
$189.85
$231.00
$196.36
2021 Tesla Model 3
$259.60
$215.20
$239.31
$259.35
$243.37
How we got these rates
Our rates are based on a single 30-year-old driver with a clean driving history living in California. California is one of seven states that doesn’t use gender to determine car insurance costs. We chose full coverage car insurance with liability limits that exceed the California state minimum requirements, which include:
When you’re shopping around for an insurer, think about these factors:
Price. Electric cars are generally more expensive to insure than their gas counterparts, though you could get a 5% to 10% electric car discount.
Additional coverage. You may want more than the minimum state coverage requirement for your Tesla. Since Teslas can be more expensive to repair, you might want to opt for collision coverage. And if you live in a high-crime area or region where hurricanes or rock slides are a concern, comprehensive coverage could be a good idea.
Extras. If you want to enhance your policy with extras like accident forgiveness and vanishing deductibles, look for a provider that ticks those boxes.
Restrictions. Each provider has its own set of limitations. Research these now to avoid any gaps in coverage, denied claims and other surprises later on. Not every insurer is prepared to cover a Tesla, even this entry-level model.
Manufacturer offer or loyalty discount. Tesla is known to offer showroom discounts, as well as referral discounts that increase with each qualifying referral.
Warranty. The Model 3 is protected by a new vehicle limited warranty for four years or 50,000 miles — whatever comes first. Tesla also covers vehicles with the standard battery for eight years or 100,000 miles, as well as those with the long-range battery for eight years or 120,000 miles. The warranty includes basic towing up to 500 miles for issues covered by the warranty and towing due to flat tires up to 50 miles to the nearest Tesla service center.
Driver factors
Providers care about the person driving the car, too. When determining your premium, they consider your driving history, including any violations, accidents and claims.
If your driving record is clean or free from major violations in the last three to five years, you may score a better rate. Insurers will also look at your credit history, where you live and who else will be driving the car.
Does the Tesla Model 3 qualify for discounts?
Depending on your provider, the Model 3 might qualify for several discounts. These discounts may help to offset the high cost of electric car insurance and ensure you get the most value for your money. As you’re researching, ask if these safety discounts apply.
New car discount
Antitheft discount
Antilock brake discount
Reliability and safety ratings for the Tesla Model 3
The Model 3 hasn’t undergone crash testing with the National Highway Traffic Safety Administration. However, the Insurance Institute for Highway Safety has run a few tests. The car earned a superior rating for its front crash prevention and an A rating for its headlights.
US News also awarded the 2018 Tesla Model 3 a score of 9 out of 10, ranking it #4 in the Luxury Small Cars category. This score reflects reliability data and a range of safety and style features.
As of November 2021, Tesla has recalled almost 3,000 Model 3 and Model Y vehicles over concerns around faulty front suspension bolts that can lead to steering instability and the possibility of crashing. The recall affects models built between 2019 and 2021.
Recalls aside, the Model 3 is incredibly efficient. If you drive around 15,000 miles a year in cities and on highways, you can expect to pay $500 annually to charge the car.
To put this into perspective, a 25-mile drive will set you back only 84 cents. According to the US Department of Energy, you can save up to $5,250 in fuel costs over five years compared to the average new vehicle.
As for battery life, the base Model 3 travels around 220 miles on a full charge under ideal conditions. If you opt for the long-range battery, that number increases to 310 miles.
What roadside assistance is included in my Tesla Model 3’s warranty?
Tesla offers 24/7 roadside assistance for the first four years or the first 50,000 miles for cars covered by the new vehicle limited warranty.
Where can I get my Model 3 repaired?
Tesla has a network of approved body shops around the country, so your best bet is to locate the one closest to you. The Tesla Body Repair Program team work with these shops to make sure they’re meeting the company’s stringent standards for repairs.
What is Insure My Tesla?
Insure My Tesla is a car insurance program designed exclusively for Tesla drivers. Underwritten by Liberty Mutual, it’s set to roll out in all 50 states sometime this year. It will provide inclusive insurance from Liberty Mutual at the time you purchase your Tesla.
About this car
Tesla’s Model 3 offers a luxury sport sedan with all-wheel drive and dual-motor powertrain functionality. Drivers can use their smartphone as a key, and access all driver controls in its 15-inch dash-mounted touchscreen. The fully panoramic all-glass roof is strong enough to protect occupants from a force equivalent to four times its own mass — or the weight of two African elephants.
The Model 3 battery comes in Standard and Long Range capacities. The 2021 Long Range AWD model reaches an estimated distance of 358 miles, hits 0 to 60 in 3.1 seconds and caps out at a top speed of 162 mph. Both models are roughed in for full Autopilot capability over time as Tesla installs software updates.
But its Autopilot technology has raised some safety concerns after two fatal crashes where drivers used the self-driving feature by “tricking” it into thinking they were in the driver’s seat. Tesla emphasizes that fully automated self-driving technology is only partially enabled and should not be used independent of an fully present and attentive driver.
Bottom line
The Tesla Model 3 is a luxury sports car, and those two descriptors don’t make it the most wallet-friendly car on the market. It tends to be on the pricier side to insure, but you may be able to cut down costs with discounts for safety features and defensive driving. Plus, as a bonus, BMW’s warranty and maintenance program is better than the industry standard.
Katia Iervasi is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in insurance. Her writing and analysis on life, disability and health insurance has been featured in The Washington Post, Forbes, Yahoo, Entrepreneur, Best Company and FT Advisor. She holds a BA in communication from Australia's Griffith University.
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