Tesla Car Insurance

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How much does it cost to insure a Tesla?

Owning an innovative car comes at a cost. Features such as the aluminum body and high-tech sensors, paired with limited experience or knowledge from many mechanics, can make Tesla insurance rates higher than those of the average vehicle. However, insuring a Tesla doesn't necessarily have to be an expensive proposition. 

The average cost of Tesla car insurance comes in just below $1,000 per year, particularly for the more affordable Tesla Model 3. If you want to save on Tesla auto insurance, try Progressive, which offers the most affordable policies for the Model S and among the cheapest rates for the Model X. The major insurance companies charging the most for Tesla insurance are Allmerica and State Farm.

Instead of waiting for the insurance industry to come to terms with this new technology and the intricacies of insuring electric vehicles, Tesla CEO Elon Musk announced that they would be moving into the business itself. Below you will find a rundown of some of the features offered by Tesla Insurance (with plans to offer their product more widely in the future).  

 

Tesla Insurance

While currently only available in California, owners of the Tesla Model 3, Model X, Model Y, and Model S are eligible for Tesla Insurance. The company’s stated goal is to lower the cost of ownership and enhance the overall customer experience. The company says its unique understanding of its own technology and the true costs of repairs can help it bring down insurance costs for many owners. As Tesla is renowned for its customer service, some Tesla owners are thrilled at the idea of purchasing insurance directly from the automaker as this coverage begins to expand into other states. 

Tesla is in a unique position to write insurance policies for their vehicles. With a deep understanding of their advanced technology, they can adjust their underwriting accordingly. For instance, they can better account for more advanced safety features and newer technologies such as autopilot, which are likely to give other insurance providers pause.

 

Tesla Insurance coverage options

Tesla drivers can benefit from a number of unique coverages, but they can also expect the basic options available from other major insurance companies, including liability coverage (bodily injury and property damage), collision and comprehensive coverage, and uninsured/underinsured motorist. Some of the other coverages offered by Tesla include gap insurance, collision deductible buyback, and total loss deductible. At present, Tesla Insurance does not offer rideshare coverage, though this may change in the future.

In another deviation from most standard insurers, Tesla is among the first to offer an Autonomous Vehicle Protection Package (though certainly not the last). This package includes liability coverage for autonomous vehicle owners, as well as wall charger coverage, electronic key replacement and will even cover cyber identity fraud expenses.

Information on pricing is rather limited, though they do mention the possibility of an insurance discount for those adding more than one vehicle on their policy. In general, Tesla Insurance rates drivers on many of the same factors as other insurance carriers, including your driving history, address, and more. It should be noted that California doesn’t rate on credit score, though this may be a factor once Tesla offers its insurance products in other states. Also, it isn’t clear if the company plans on using its built-in telematics systems when determining car insurance rates in the future, but this is something that Tesla is currently exploring.

At present, it would appear that Tesla Insurance can only be purchased directly through the company. However, there are a number of other great options for those looking to insure a Tesla. With The Zebra, finding car insurance is simple. Just select a model below to see average rates and to compare costs by company.

 

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