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Tesla Model 3 Insurance Cost
Across national and regional providers, the average cost of full-coverage insurance for a 2022 Tesla Model 3 is $3,209 per year or $267 per month. These figures are well above the national averages of $1,730 per year or $144 per month for full-coverage car insurance.
Tesla Model 3 Car Insurance Cost By State
Below is the average cost per year to insure a Tesla Model 3, broken down by model year and state:
| State | 2018 Model 3 | 2019 Model 3 | 2020 Model 3 | 2021 Model 3 | 2022 Model 3 |
|---|---|---|---|---|---|
| Alabama | $2,372 | $1,942 | $2,477 | $2,548 | $2,882 |
| Alaska | $2,039 | $1,834 | $2,138 | $2,209 | $2,381 |
| Arizona | $2,516 | $2,326 | $2,635 | $2,663 | $3,012 |
| Arkansas | $2,360 | $2,156 | $2,511 | $2,563 | $3,160 |
| California | $2,967 | $2,852 | $3,184 | $3,311 | $3,439 |
| Colorado | $2,649 | $2,276 | $2,665 | $2,669 | $3,064 |
| Connecticut | $3,265 | $2,914 | $3,471 | $3,565 | $3,910 |
| District of Columbia | $2,987 | $2,600 | $3,255 | $3,373 | $3,806 |
| Delaware | $3,416 | $2,857 | $3,609 | $3,707 | $4,123 |
| Florida | $3,701 | $3,450 | $3,834 | $3,918 | $5,140 |
| Georgia | $2,139 | $1,855 | $2,178 | $2,243 | $2,487 |
| Hawaii | $2,495 | $2,317 | $2,667 | $2,706 | $2,783 |
| Idaho | $1,803 | $1,431 | $1,837 | $1,741 | $2,042 |
| Illinois | $2,080 | $1,805 | $2,167 | $2,184 | $2,379 |
| Indiana | $1,962 | $1,710 | $2,116 | $2,200 | $2,493 |
| Iowa | $1,769 | $1,469 | $1,871 | $1,926 | $2,314 |
| Kansas | $2,183 | $2,008 | $2,421 | $2,433 | $2,803 |
| Kentucky | $2,457 | $2,239 | $2,629 | $2,706 | $3,151 |
| Louisiana | $4,559 | $4,001 | $4,735 | $4,872 | $5,434 |
| Maine | $1,548 | $1,307 | $1,584 | $1,638 | $1,916 |
| Maryland | $2,424 | $2,349 | $2,640 | $2,708 | $2,983 |
| Massachusetts | $4,283 | $3,812 | $4,679 | $4,876 | $4,845 |
| Michigan | $5,982 | $5,109 | $6,389 | $6,422 | $7,268 |
| Minnesota | $2,590 | $2,152 | $2,693 | $2,762 | $3,201 |
| Mississippi | $2,626 | $2,390 | $2,796 | $2,847 | $3,717 |
| Missouri | $2,944 | $2,553 | $2,970 | $3,071 | $3,880 |
| Montana | $3,570 | $3,017 | $3,860 | $3,870 | $4,426 |
| Nebraska | $2,312 | $1,991 | $2,398 | $2,407 | $2,747 |
| Nevada | $3,224 | $2,935 | $3,383 | $3,411 | $3,752 |
| New Hampshire | $2,324 | $2,136 | $2,510 | $2,613 | $2,957 |
| New Jersey | $3,023 | $2,863 | $3,195 | $3,290 | $3,606 |
| New Mexico | $2,219 | $1,949 | $2,260 | $2,300 | $2,608 |
| New York | $3,973 | $3,650 | $4,373 | $4,404 | $5,223 |
| North Carolina | $1,796 | $1,514 | $1,951 | $2,034 | $2,179 |
| North Dakota | $2,193 | $1,683 | $2,219 | $2,236 | $2,498 |
| Ohio | $1,545 | $1,381 | $1,602 | $1,647 | $1,850 |
| Oklahoma | $2,558 | $2,253 | $2,575 | $2,604 | $3,264 |
| Oregon | $1,927 | $1,738 | $1,987 | $2,011 | $2,337 |
| Pennsylvania | $2,359 | $2,255 | $2,628 | $2,707 | $2,931 |
| Rhode Island | $3,062 | $2,673 | $3,237 | $3,366 | $3,718 |
| South Carolina | $2,261 | $2,073 | $2,415 | $2,541 | $2,670 |
| South Dakota | $2,439 | $2,115 | $2,547 | $2,561 | $3,127 |
| Tennessee | $2,310 | $1,983 | $2,556 | $2,603 | $3,116 |
| Texas | $2,742 | $2,490 | $2,774 | $2,854 | $3,165 |
| Utah | $2,132 | $1,903 | $2,162 | $2,175 | $2,509 |
| Vermont | $1,576 | $1,406 | $1,668 | $1,718 | $1,863 |
| Virginia | $1,828 | $1,637 | $1,866 | $1,923 | $2,301 |
| Washington | $2,406 | $2,026 | $2,518 | $2,514 | $2,859 |
| Wisconsin | $2,051 | $1,814 | $2,252 | $2,297 | $2,690 |
| West Virginia | $2,335 | $1,957 | $2,369 | $2,450 | $2,804 |
| Wyoming | $2,864 | $2,185 | $2,952 | $3,113 | $3,481 |
Note: All estimates are for full-coverage insurance and are based on the standardized profile of a 35-year-old driver with a clean driving record and good credit history.
Best Cheap Insurance for Tesla Model 3
Across the 2018 to 2022 model years, you’ll generally find the most affordable coverage from USAA. However, USAA car insurance policies are only available to active-duty military members, veterans and their immediate families. Nationwide, State Farm, Erie and Auto-Owners are affordable Tesla Model 3 insurance options for other drivers.
Tesla Model 3 Insurance Quotes
The best way to find cheap coverage for your Tesla Model 3 is to compare car insurance quotes from multiple providers. You can typically get free quotes online from major auto insurers, which makes shopping around a straightforward process.
2022 Tesla Model 3 Insurance Quotes
The cheapest coverage for a 2022 Tesla Model 3 is typically from USAA, with estimated average costs of $1,543 per year or $129 per month. Nationwide is the cheapest option for those who aren’t eligible for USAA, at an average of $1,835 per year or $153 per month.
The estimates below are based on a married 35-year-old driver with a clean driving record and a good credit score.
| Car Insurance Provider | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Nationwide | $153 | $1,835 |
| State Farm | $176 | $2,107 |
| Auto-Owners | $180 | $2,155 |
| Travelers | $184 | $2,208 |
| Erie | $190 | $2,281 |
| Progressive | $234 | $2,806 |
| American Family | $263 | $3,152 |
| Allstate | $366 | $4,392 |
| Geico | $375 | $4,499 |
| USAA* | $129 | $1,543 |
*USAA insurance is only available to members of the military, veterans and their families.
2021 Tesla Model 3 Insurance Quotes
USAA has the cheapest car insurance rates for the 2021 Tesla Model 3 as well, at $1,355 per year or $113 per month. Nationwide checks in with the most affordable coverage for nonmilitary drivers, at $1,881 per year or $157 per month.
| Car Insurance Provider | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Nationwide | $157 | $1,881 |
| State Farm | $170 | $2,039 |
| Auto-Owners | $171 | $2,053 |
| Erie | $173 | $2,077 |
| Travelers | $184 | $2,205 |
| Geico | $221 | $2,657 |
| Progressive | $228 | $2,731 |
| American Family | $229 | $2,753 |
| Allstate | $347 | $4,162 |
| USAA | $113 | $1,355 |
2020 Tesla Model 3 Insurance Quotes
Once again it’s USAA with the cheapest coverage for a 2020 Tesla Model 3, with estimated average costs of $1,345 per year or $112 per month. For drivers who aren’t eligible for USAA policies, Nationwide is the most affordable option with an annual rate of $1,902 and a monthly rate of $159.
| Car Insurance Provider | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Nationwide | $159 | $1,902 |
| Auto-Owners | $164 | $1,971 |
| State Farm | $169 | $2,029 |
| Erie | $171 | $2,054 |
| Travelers | $179 | $2,149 |
| Geico | $213 | $2,558 |
| Progressive | $222 | $2,665 |
| American Family | $225 | $2,703 |
| Allstate | $326 | $3,907 |
| USAA* | $112 | $1,345 |
2019 Tesla Model 3 Insurance Quotes
USAA offers the cheapest Tesla car insurance for the 2019 Model 3, with average rates of $1,202 per year or $100 per month. Auto-Owners comes in second with typical costs of $1,480 per year or $123 per month.
| Car Insurance Provider | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Auto-Owners | $123 | $1,480 |
| Nationwide | $126 | $1,516 |
| Erie | $127 | $1,529 |
| State Farm | $142 | $1,705 |
| Travelers | $157 | $1,880 |
| American Family | $162 | $1,946 |
| Geico | $208 | $2,500 |
| Progressive | $211 | $2,531 |
| Allstate | $269 | $3,232 |
| USAA* | $100 | $1,202 |
2018 Tesla Model 3 Insurance Quotes
USAA offers the cheapest coverage for the 2018 Tesla Model 3, with an average estimated cost of $1,333 per year or $111 per month. For those who don’t qualify for USAA policies, Erie is the cheapest option at $1,638 per year or $137 per month.
| Car Insurance Provider | Estimated Monthly Cost | Estimated Annual Cost |
|---|---|---|
| Erie | $137 | $1,638 |
| Nationwide | $145 | $1,737 |
| State Farm | $148 | $1,776 |
| Travelers | $149 | $1,793 |
| Auto-Owners | $154 | $1,850 |
| Progressive | $207 | $2,486 |
| American Family | $216 | $2,594 |
| Geico | $229 | $2,745 |
| Allstate | $325 | $3,894 |
| USAA* | $111 | $1,333 |
*Cost data based off 2022 information
Tesla Model 3 Insurance Coverage
The cost estimates in this article are for full-coverage car insurance, which includes bodily injury liability coverage, property damage liability insurance, collision coverage and comprehensive coverage policies for the Tesla Model 3. Collision takes care of damages to your vehicle from accidents you yourself cause, while comprehensive pays for damages from vandalism, theft and severe weather events.
Depending on where you live and your state’s minimum requirements, you may also need uninsured motorist coverage or personal injury protection (PIP). Auto insurance companies also offer a variety of add-on policies such as:
- Mechanical breakdown insurance (MBI): This optional protection covers a wide range of parts on your vehicle in the case of a mechanical breakdown and is similar to an extended car warranty.
- Guaranteed asset protection: Also known as gap insurance, this covers the difference between your vehicle’s value and what you still owe on it in the event of a total loss. Most lenders require this type of coverage.
- New car replacement: If your new Tesla Model 3 is totaled within a certain time window, this coverage option pays for a new vehicle to replace your old one.
Where Is Tesla Model 3 Insurance Available?
Tesla offers its own insurance policies that use the car’s existing technology to track real-time driving data. Currently, the usage-based Tesla Insurance program is available to drivers in 11 states:
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Note that Tesla’s car insurance prices can vary widely based on the safety ratings you’re given based on your driving record. This insurance product can help some drivers to lower their premiums, but you’re likely to be charged high rates if you drive irresponsibly.
How Does Tesla Model 3 Insurance Work?
Tesla uses several data points to set its car insurance premiums, including where you live, where you drive, how much you drive, how much coverage you buy and your monthly Safety Score. Tesla’s telematics program called Safety Score measures driving habits to determine your Safety Score, with higher scores creating more opportunities to save money.
This is different from the model used by most auto insurers. It’s typical for most car insurance companies to calculate premiums based on your age, marital status, driving history, credit score and chosen deductible along with any safety features that come with your vehicle.
Discounts for a Tesla Model 3
Tesla offers discounts if you insure multiple vehicles through the company. Policyholders whose other cars aren’t Tesla models still qualify for the multicar discount as long as the vehicle is also covered by Tesla Insurance.
Otherwise, you’ll miss out on car insurance discounts if you purchase from Tesla Insurance. Standard providers like State Farm, Geico and Progressive, however, offer a wide range of savings opportunities on Tesla Model 3 insurance.
Best Insurance for Tesla Model 3: The Bottom Line
As you’d expect for an EV loaded with advanced technology, it’s rather expensive to insure a Tesla Model 3. For Tesla owners who don’t qualify for USAA auto coverage, we’d recommend getting instant quotes from Nationwide, Auto-Owners and Erie for Tesla Model 3 insurance.
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Cost To Insure Tesla Model 3: FAQ
Below are some frequently asked questions about Tesla Model 3 insurance:
Almost every Tesla model will be more expensive to insure than the national average for car insurance. This is due to high car repair costs stemming from hard-to-find parts and the advanced technology found in Tesla vehicles.
According to RepairPal, the average Tesla car maintenance cost is $832 per year, far above the average cost of $652 per year for all car models sold in the U.S. Note that maintenance costs may be slightly different for a Model 3 than for a Tesla Model Y or Model X.
The Tesla Model 3 is almost always more expensive to insure than the average vehicle. That’s due to the aluminum body construction, advanced technology features and steep cost of battery replacements.
The cost to replace a Tesla Model 3 battery can run up to $20,000. In addition to the high cost of a battery replacement, Teslas are made out of aluminum, which is more expensive to replace than traditional fiberglass bodies. Also, Tesla requires its cars to head to company-approved collision centers if they get damaged in car accidents, limiting your ability to shop around for low repair prices.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
Daniel RobinsonWriter
Daniel is a MarketWatch Guides team writer and has written for numerous automotive news sites and marketing firms across the U.S., U.K., and Australia, specializing in auto finance and car care topics. Daniel is a MarketWatch Guides team authority on auto insurance, loans, warranty options, auto services and more.
Rashawn MitchnerManaging Editor
Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance and insurance topics.
