Tesla Model Y Car Insurance: Average Rates, Cheapest Companies, and How to Save

Imagine insuring your Tesla Model Y, with all its cutting-edge tech, for just $126 per month. That’s the average rate from AAA — the Model Y’s cheapest insurer. Model Y owners can expect to pay an average of $115 per month for liability coverage and $273 for full coverage, according to Compare.com data.

Tesla’s higher-than-average premiums come down to a few factors, including the lack of available aftermarket parts and few Tesla-approved service centers. Still, the Model Y’s advanced safety features might help balance out some of those costs.

Read on to find out the best car insurance companies for Tesla Model Y owners and average rates for different driver types, models, and locations.

Key Takeaways:

• The overall average cost to insure a Tesla Model Y is $193 per month.
• AAA offers the cheapest average monthly rates for Model Y insurance, at $126.
• A 2024 Model Y can cost over $400 more per year to insure than a 2020 model.

In This Article:

• Average Model Y Car Insurance Costs
• Cheapest Model Y Car Insurance Companies
• Best Insurance Companies for a Tesla Model Y
• Model Y Insurance Rates by Model Year
• Model Y Insurance Rates by Age and Driving Record
• Factors that Affect Model Y Insurance Costs
• How to Get Cheap Car Insurance for Model Y’s
• Frequently Asked Questions

How Much Does It Cost to Insure a Tesla Model Y?

How much you pay to insure a Tesla Model Y depends a lot on the type of coverage you pick. If you stick with liability-only insurance, it’s cheaper but only covers damage you cause to someone else. Full-coverage car insurance costs more but pays for damage to your own car, too.

Check out the table below to see how Tesla Model Y insurance compares to the national average for all cars, according to Compare.com data.

We found that liability coverage for a Tesla Model Y costs an average of $115 per month, while full coverage costs $273. But insurance rates are about more than the policy type — insurers look at other factors when calculating premiums.

The Cheapest Car Insurance Companies for Tesla Model Y

While insuring a Tesla is usually more expensive than insuring the average car, you’ll find plenty of ways to save on insurance for your Model Y.

Here are the insurance companies that offer some of the cheapest car insurance rates for the Model Y, according to our data.

AAA has the lowest average premium, at $126 per month — but just because it’s the cheapest on average doesn’t mean it’ll be the cheapest for you. It’s a good idea to compare car insurance quotes from a few different companies when shopping for insurance.

Let’s look at the best companies for different driver types.

The Best Tesla Model Y Insurance Companies of 2024

No single car insurance company is the best for everyone. You’ll need to find one that fits your needs and explore quotes on a comparison site to home in on the best deal. We picked the three companies below based on factors like average rates for the Model Y, available discounts, customer ratings and reviews, and coverage options.

Best for maximum coverage: AAA

• Average premium: $126 per month
• Compare.com Rating: 4.3 out of 5

Pros:

• Some of the cheapest average rates for Tesla owners
• New car replacement available
• Gap coverage available

Cons:

• Coverage requires membership
• Discounts not available in every state
• Optional coverages can drive up cost

AAA is ideal for Tesla Model Y owners who want maximum protection. It offers options like new car replacement to get you a brand-new vehicle if you damage yours beyond repair, gap coverage to pay what you owe if it’s more than your car’s value, and original exterior replacement parts. The insurer also has a great roadside assistance package.

Best for discounts: Progressive

• Average premium: $145 per month
• Compare.com Rating: 4.7 out of 5

Pros:

• Plenty of discounts available
• Snapshot program rewards good driving
• Flexible payment plans

Cons:

• Discounts vary by state
• Below-average customer satisfaction ratings
• Snapshot can raise rates for some drivers

Progressive is a great pick for the best discounts on your Tesla Model Y insurance. You can lower the cost of car insurance by bundling policies, insuring more than one vehicle, being a homeowner, paying in full, enrolling in auto pay, and more. The Snapshot program can lower rates for good drivers, and accident forgiveness helps keep your premiums down.

Best for commuters: Farmers

• Average premium: $146 per month
• Compare.com Rating: 3.5 out of 5

Pros:

• Roadside service and rental car reimbursement available
• Offers workplace-based discounts
• Offers accident forgiveness

Cons:

• More expensive than other insurers
• Limited discount options
• Low claims satisfaction score

If you commute daily, Farmers is a solid choice for your Tesla Model Y insurance. The insurer offers roadside service and rental car reimbursement to get you back on the road if you’re in an accident, while accident forgiveness protects your wallet from rate increases. Plus, you can qualify for discounts based on where you work and get lower rates for your safe driving habits.

Tesla Model Y Insurance Rates by Model Year

Your car’s age can affect your insurance rates. Generally, the newer the car, the more it’s worth, which means higher insurance costs. That’s why older models usually have cheaper premiums.

The table below breaks down the average monthly premiums for the Tesla Model Y based on model year. It also shows the cheapest insurer for each year, according to Compare.com data.

Next, we’ll explore how these rates change depending on where you live.

Tesla Model Y Insurance Rates by State

When shopping for coverage for your Tesla Model Y, note that insurance rates can vary dramatically by location. Each state has different minimum-coverage rules that affect your cost. Things like legal costs, medical care, car repair prices, and weather patterns also vary by state and can ultimately affect what you pay.

The table below shows the average monthly premiums in every state for the Tesla Model Y, according to Compare.com data.

Our research found that drivers in Louisiana pay the highest average premiums for Model Y, while New Jersey drivers pay the cheapest rates.

In the next section, we’ll explore how your age can affect what you pay for Tesla car insurance.

Tesla Model Y Insurance Rates by Age

Age is one of the most important factors when it comes to calculating insurance rates. Teen drivers pay the highest rates because they’re more likely to get into a car accident. That’s because teens are almost three times as likely to be in a fatal crash as drivers 20 and older, according to the Insurance Institute for Highway Safety (IIHS).

Thankfully, as you age and gain more driving experience, your rates tend to drop. But as you reach 70, they tend to creep back up slightly. Changes in vision, physical abilities, memory, and certain health conditions or medications can affect how well you drive, according to the Centers for Disease Control and Prevention (CDC).

Here’s how average monthly car insurance premiums change based on your age, according to our analysis.

Teens pay the highest premium overall, $284 per month, but Model Y owners can find the cheapest rate with Direct Auto, at $192 per month. Premiums drop quite a bit once you hit your 20s and continue to fall through your 30s and 40s. And they drop even further once you reach 60 — seniors pay an average of $132 less per month than teens.

Tesla Model Y Insurance Rates by Driving Record

Your driving record can also weigh heavily on how much you pay for Tesla Model Y coverage. If you have traffic violations like speeding tickets or DUIs, insurers see you as a higher risk and will charge you more to offset the risk. And the more serious the violation, the higher your premiums will be.

The timing of the offense also matters. Insurance companies usually check the last three years of your driving history. But a DUI might stay on your driving record forever, depending on your state’s laws.

Here’s how much drivers typically pay each month based on driving history, according to our data.

Our research found that rates jump dramatically after an accident or DUI. For example, the average monthly premium goes up to $293 after an at-fault accident, but Hugo offers a lower rate at $159. It’s clear that a clean driving history can save you a lot on insurance.

Tesla Model Y Features and Options That Affect Insurance Rates

When buying a Tesla Model Y, you can choose from different options and features, but what you choose can raise your auto insurance costs. For example, you can choose between the Model Y long-range rear-wheel drive (least expensive), long-range all-wheel drive, and performance all-wheel drive (most expensive). Generally, the more your car is worth, the more you’ll pay for insurance.

You can also add the optional full self-driving (FSD) feature. This can significantly boost the car’s value and increase your cost of ownership. If you didn’t buy FSD at the time of purchase, it’s available as a monthly subscription. Adding this option can also lead to higher insurance rates, thanks to the higher price of potential repairs.

How to Get Cheaper Car Insurance for Your Tesla Model Y

The Tesla Model Y tops the list as the most expensive electric vehicle to insure, according to the National Association of Insurance Commissioners (NAIC). If you’re looking to save on your policy, try these five tips:

• Buy a cheaper model: Opting for the long-range rear-wheel drive instead of the higher-priced models can lower your premiums.
• Let your insurance company track your driving: Share driving data from your Model Y’s built-in telematics to qualify for a safe driving discount.
• Look for EV-specific discounts: Some insurers, like AAA, offer discounts for electric vehicles, including the Model Y.
• Go with a higher deductible: If you don’t mind paying more out of pocket when you file a claim, raising your comprehensive and collision coverage deductibles can offset your Model Y’s steeper premiums.
• Shop around and compare quotes: Rates vary by insurer, so getting quotes from several insurers is the best way to find the cheapest rate for your Model Y.

Tesla Model Y Auto Insurance FAQs

You might have a few questions when buying insurance for your Tesla Model Y. Here are answers to some of the most common ones.

How much is insurance on a Tesla Model Y?

Average insurance prices for a Tesla Model Y run $193 per month, according to Compare.com data. But how much you pay depends on several factors, like your driving record, your age, where you live, and the insurance options you choose.

Do Teslas cost more to insure?

Yes, Teslas usually cost more to insure than other cars. The Model Y is one of the more expensive EVs to insure, according to our data. Higher vehicle values and replacement and repair costs help drive up Model Y insurance premiums.

Does Tesla Insurance cover hail damage?

It depends. If your Tesla Insurance policy includes comprehensive insurance, your coverage will pay for hail damage. A liability-only car insurance policy doesn’t cover hail damage.

Does Tesla have its own insurance?

Yes, Tesla has its own insurance. You can buy a Tesla insurance policy for your Model Y online through your Tesla account or the Tesla app. But make sure you compare quotes against other insurers before you do. That way, you can ensure you’re getting the best deal for your Model Y.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. Bloomberg Law, “Tesla Monopoly on Repairs, Parts Gouges Car Owners, Suits Say,” accessed August 23, 2024.
2. Insurance Information Institute, “What determines the price of an auto insurance policy?,” accessed August 23, 2024.
3. Insurance Institute for Highway Safety, “Older drivers,” accessed August 23, 2024.
4. National Highway Traffic Safety Administration, “Teen Driving,” accessed August 23, 2024.
5. Centers for Disease Control and Prevention, “Older Adult Drivers,” accessed August 23, 2024.
6. National Association of Insurance Commissioners, “Does your vehicle have the right protection? Best practices for buying auto insurance,” accessed August 23, 2024.
7. DUI.org, “How long will my DUI stay on my public record?,” accessed August 23, 2024.
8. Tesla, “Model Y,” accessed August 23, 2024.
9. Tesla, “Full Self-Driving (Supervised) 30-Day Trial,” accessed August 23, 2024.
10. Insurance Information Institute, “Background on: Self-driving cars and insurance,” accessed August 23, 2024.
11. National Association of Insurance Commissioners, “Electric Vehicle Insurance Rates,” accessed August 23, 2024.
12. Tesla, “Tesla Insurance Coverages,” accessed August 23, 2024.