How to Save on Tesla Model 3 Car Insurance

Getting insurance for your Tesla Model 3 shouldn’t be an afterthought. Tesla insurance costs tend to be higher than that of other electric cars, so you’ll want to factor them into your budget along with other expenses like monthly lease or loan payments.

Tesla Model 3 insurance costs depend on several factors, though, so if one insurance quote is too high, it’s worth shopping around to see if you can get a better deal from a different car insurance company. The model year of your Tesla Model 3 can have an impact on your car insurance costs — but your age and location matter too.

Here’s everything you need to know about the cost of insurance for the Tesla Model 3, and what factors to consider before you drive home with a new EV.

Key Takeaways

• A Tesla Model 3 is more expensive to insure compared to the average car.
• Liability auto insurance for a Model 3 comes in at about $80 monthly, while full coverage usually runs around $234 a month.
• The lowest car insurance company for a Model 3 is AmericanAlliance.

How Much is Car Insurance for a Tesla Model 3?

In the table above, you’ll see that Tesla Model 3 insurance premiums are higher than average compared to other vehicles. On average, Model 3 owners will pay around $80 per month for liability insurance, and about $234 a month for full coverage, which has comprehensive and collision coverages in addition to liability (discover more about these different types of insurance with our guide “State Minimum vs. Full Coverage”).

Compared to other models, the Model 3 is on par with Tesla’s vehicle offerings. Compared to offerings from other brands, auto insurance for a Model 3 runs close to average, with full coverage insurance prices coming in at $57 higher than other cars and liability insurance rates at $3 cheaper.

When compared to all vehicles of any body type, liability only premiums are slightly more affordable for a Model 3, but run higher than average for full coverage policies.

Who has the Cheapest Car Insurance for a Tesla Model 3?

If you’re browsing for a new auto insurance policy for your Tesla Model 3, you’re likely wondering which carrier offers the most affordable premiums. Even though costs will normally be pretty different from policyholder to policyholder, American Family has the cheapest average rates for liability only coverage, with rates as cheap as $35 monthly. The next most affordable company is CaliforniaCasualty, who offers car insurance sometimes as cheap as $40 a month.

StateAuto, MetroMile, and Freedom round out the rest of the top 5 list. However, just because these five carriers offer the lowest average rates doesn’t necessarily mean they’ll be the cheapest for you.

After all, insurance companies look at a range of different variables when calculating rates, so your results might be different. The only way to guarantee you’ll find the cheapest rates is to compare quotes from several car insurance carriers.

Tesla Model 3 Car Insurance Discounts

Regardless of your car, your home state, or your age, it’s always in your best interest to take advantage of as many auto insurance discounts as possible.

While no two car insurance carriers offer the same exact discounts, there are a few that you’ll find with most insurers. These include things like:

• Vehicle safety discounts for having a vehicle with certain safety features (like anti-lock brakes or air bags) or one with higher than average safety ratings
• Defensive driving discounts for drivers who take a defensive driving class through an accredited school or institution
• Multi-policy discounts for getting both your home and auto policies from the same carrier
• Pay-in-full discounts for agreeing to pay your entire policy premium up front, rather than in monthly installments

While these are just a few of the discounts auto insurance companies offer, there are countless other ways to save money on you monthly insurance bill. Often, it’s actually having a profile that shows positive driving habits to insurance carriers that get you the best rates.

How Do Tesla Model 3s Compare to Other Vehicles?

If you’re thinking about purchasing a new vehicle and a Tesla Model 3 is on your shortlist, it can pay off to do your due diligence. Car insurance is just one cost that’s associated with a new car purchase, but it’s definitely one that’s worth considering carefully.

Visit the table below to see how the Tesla Model 3 compares:

Overall, the Tesla Model 3 has an MSRP that’s on par with the going rate for a new vehicle. The Model 3 starts at $44,990, similar to the national average vehicle MSRP of $46,192.

Liability insurance for a Tesla Model 3 is about $31 per month less than average, while full coverage is over $40 more monthly.

When it comes to usage, Tesla Model 3 owners drive fewer miles annually than the national average, with 11,617 miles for all vehicles every year compared to the Model 3’s 9,523 per year.

Tesla Model 3 Car Insurance Costs by Model Year

We’ve walked through many of the things that can have an impact on what you’ll pay for auto insurance. If you’re considering buying a new Model 3, having a good idea of exactly how much you’ll pay can be extremely helpful as you weigh your choices and compare it to other vehicles on your shortlist.

2022 Tesla Model 3 Car Insurance

When it comes to insuring a Model 3, on average, it costs around $50 a month to insure a 2022 Tesla Model 3 for liability only and $216 monthly for full coverage. And if you want the most affordable insurance possible, Clearcover offers liability only policies for as little as just $43 per month.

2021 Tesla Model 3 Car Insurance

If you’re looking to buy a 2021 Model 3 or already own one, you can expect an average auto insurance price of about $90 for liability or $272 for full coverage.

And if you’re just looking for the cheapest insurance for your Model 3, Hugo offers liability only policies for as little as $18 monthly.

2020 Tesla Model 3 Car Insurance

You can expect full coverage for a 2020 Tesla Model 3 to run around $238 per month, while liability only coverage will average about $79 a month.

If you’re looking for the most affordable 2020 Tesla Model 3 insurance policy, Hugo offered the lowest policy we found, with rates sometimes as little as $17 per month.

2019 Tesla Model 3 Car Insurance

It costs around $79 a month for liability or $227 for a full coverage policy for the 2019 Model 3.

With premiums as cheap as just $17 monthly, Hugo offered the most affordable policy we found for the 2019 Tesla Model 3.

2018 Tesla Model 3 Car Insurance

The average cost to insure a 2018 Tesla Model 3 with liability only coverage is $66 per month, while full coverage runs about $196 monthly.

Looking for the lowest policy? Hugo offered liability only coverage for as low as just $17 a month.

2017 Tesla Model 3 Car Insurance

2017 Model 3 drivers can expect to pay an average of $83 per month for liability or $222 for full coverage.

Clearcover offered the cheapest policy we found, with rates sometimes as low as $33 a month.

Tesla Model 3 Insurance FAQs

We have answers to the most commonly asked questions about Tesla Model 3 car insurance.

Is a Tesla Model 3 expensive to insure?

It costs more to insure a Tesla Model 3 when compared to the average car. Liability insurance runs an average of $80 monthly, while full coverage will cost you around $234.

How can I get the best price on car insurance for my Tesla Model 3?

There’s only one way to be sure you’re getting the lowest rates — checking prices regularly and comparing quotes from multiple companies. Over time, your driver profile changes, so it’s a good rule of thumb to review quotes every 6 months or so. Luckily, sites like Compare.com let you compare rates from a range of carriers at once, meaning you can find the cheapest rates (or guarantee you already have the best deal) for free.

Does the color of my Tesla Model 3 affect my insurance prices?

Have you heard the old adage that red cars cost more to insure before? Well, that’s just a myth. There are many variables insurance companies use when they decide how much to charge you for auto insurance, but the color of your Tesla Model 3 is not factored into that equation.

Do I need to have insurance before I buy a Tesla Model 3?

You’ll need to have valid car insurance for your vehicle before you can legally drive your it off the dealership lot. Some dealerships may offer you an insurance policy as part of the car-buying process, but the easiest thing to do is to let your auto insurance company know before you buy.

What car insurance discounts can I get for my Tesla Model 3?

There are many discounts out there for insurance. Many of them (like “pay-in-full discounts” and “multi-vehicle discounts”) are more based on you than the car you drive, but if your Model 3 has safety features like anti-theft systems, anti-lock brakes, airbags, and other features, it may qualify for certain discounts. The best way to find out is to contact your insurance carrier and ask about which discounts they offer.

Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes 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 of the quotes listed in this article have been gathered 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 drivers with insight into how auto insurance companies determine their premiums.