Tesla Car Insurance Review [2021]

You’ve probably seen a Tesla on the road and wondered what it was exactly. Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products according to their website.

But car insurance? What’s that all about? Will they insure my 20-year-old Mustang? How long have they been selling insurance? Do they settle claims quickly? Do they answer the telephone when you need to speak to someone?

In this guide, we’re going answer all of those questions and provide you with everything you need to know, including company history, ratings, coverage options, and more.

Want to start comparison shopping today? You can take advantage of our FREE online tool to start comparing rates in your area.

Let’s get started.

Tesla’s Rating Agency

Tesla is well-known for its expensive cars, but insurance? Is it expensive? Does it treat customers fairly? Let’s see what multiple independent agencies have to say about them and whether it’s the right company for your car insurance needs. Comparing the pros and cons is an important factor in determining which auto insurance company is best for you.

The table below tells us more:

Below, we look closer at these ratings and what they mean.

Better Business Bureau

This rating looks at multiple aspects of a business, although the most critical element is the company’s complaint history. A complaint history shows how satisfied customers are with the service they receive.

The Better Business Bureau gives Teslas an A+, which is the highest rating. Customers are mixed about Tesla, giving it a 3.1 out of five stars out of 96 reviews. There were 1,200 complaints closed in the past three years, which is more than General Motors, Ford, or Toyota.

Moody’s Rating

Moody’s rating looks at how well a company can pay off its debts (its creditworthiness). Tesla’s B3 rating translates into “obligations rated B are considered speculative and are subject to high credit risk.” A score of three is the lowest sub-rating in the B category.

S&P Rating

Standard and Poor’s (S&P) is also considered a big three financial rating agency in the United States. Like Moody’s, it issues credit ratings, economic outlook ratings, and overall financial strength ratings.

The video below explains more:

S&P gives Tesla a B-rating. According to S&P’s methodology, Tesla is at a higher risk of nonpayment than those with a BB or above.

However, it is still able to meet its financial obligations but may have trouble under adverse economic conditions.

Consumer Reports

Consumer Reports is an organization that allows consumers to rate their satisfaction with a company. It also evaluates products, such as washers, cordless drills, and cars.

Consumer Reports has not been positive about vehicles manufactured by Tesla. The highest-rated vehicle is the 2019 Model S (78 out of 100), while the lowest is the 2019 Model X (just a 55).

Conversely, in spite of the low ratings for Tesla’s vehicles, Tesla’s customers are satisfied, ranking at the top of all car manufacturers. The company’s customer satisfaction rating is 89 out of 100.

Consumer Affairs

Consumer Affairs is similar to Consumer Reports but without product reviews. It’s a site where customers can rate a company and leave reviews.

Overall, consumers had mixed feelings about Tesla, giving it 3.2 out of five stars from 328 reviews. Some of these complaints had to do with customer service or the repair process.

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Company History

Tesla was founded in 2003 by a quintet of friends who wanted to supply the world with affordable, quality electric cars. Named after Nicola Tesla, who, along with Thomas Edison, were two of the most influential inventors of the late nineteenth century, the company’s plan was simple in design, but complicated to execute.

Check out the clip below to learn more about the Tesla Roadster:

But many factors make up a company, including how it treats its customers, how it works within the community, and whether it is financially viable enough to weather volatile economic situations.

Why should you care about the history of Tesla? Because looking at a company’s history gives you essential data about how successful the company is and what its future is like.

Up next, we are going to dig into everything from Tesla market share to its awards and accolades.

Tesla Market Share

Unlike most other insurance companies, which have no such requirements, Tesla has two basic requirements if you want to have them as your insurance provider:

1. You must own a Tesla
2. You must live in the state of California

Because the company just launched its insurance program in August 2019, it’s difficult to compute a number for market share. However, Investorplace does present this crucial fact:

Even if every Tesla owner in California switched to Tesla’s insurance, the company’s share of the U.S. car insurance market would be less than 0.5 percent.

For now, the company has managed to start something, no other car company has, and only time will reveal if it’s a success.

Tesla’s Position for the Future

Tesla’s future seems uncertain. Company founder Elon Musk continues to invest in other areas such as SpaceX and Cybertruck with mixed results, but the company has shown it’s not afraid to take chances. That may not bode well for investors.

Standard and Poor’s rated its outlook as negative.

However, the company dominates an up-coming market segment in electric vehicles, has the brand name to get people’s attention. Soon it will be producing vehicles that appeal to middle-class workers.

This should all increase company revenue and market share significantly, especially if taxpayers are continuously rewarded for buying electric vehicles.

Tesla’s Online Presence

Tesla has four social media outlets where it posts videos, images, and other content.

• YouTube
• Facebook
• Twitter
• Instagram

Each platform has hundreds of thousands, if not over a million followers.

Tesla’s Commercials

Tesla doesn’t have typical commercials as other insurance companies do. In fact, as of May 2019, the company hasn’t spent anything on paid advertising. It does have a YouTube channel, and some of the features there feature insights into the company’s products and customers.

Here’s a customer story:

Check out the Electric Family:

As the article from CNN explains, Tesla may have to up its game where advertising is concerned because they are no longer the only automaker to offer electric cars.

Tesla in the Community

Tesla doesn’t offer campaigns to help out in local communities, as some other companies do but instead focuses on stewardship more aligned with its products.

Environmental stewardship is where the company promotes itself around the world.

Here’s what Tesla is doing in Samoa:

Here’s what the company is doing in Hawaii:

As the company continues to grow, it expects more opportunities to reduce dependence on fossil fuels and create energy that relies on natural sources or those that reduce overall energy consumption.

Tesla’s Employees

Let’s take a look at what employees think of Tesla. This will give us insight into the company’s values and employee satisfaction levels.

Here are the ratings from Indeed:

Employees are not crazy about the long hours and uncertainty of the future. However, they do like the salaries and benefits provided by the company. Reviewers on PayScale had similar concerns as those at Indeed. They noted that the job is highly stressful, which may go in line with the work hours and insecurity of their jobs. Job satisfaction is good, however.

Folks at Glassdoor have more concerns about Tesla than the ones on Indeed and PayScale. About half would recommend Tesla to a friend, though 65 percent approve of CEO Elon Musk.

Recent awards include:

As a relatively new company, only time will tell if Tesla is somewhere to build a long-term career. For now, employees enjoy the pay and benefits but could do without the stress and headaches that usually accompany such positions.

– Cheap Car Insurance Rates

Tesla started offering car insurance in August 2019, revealing the insurance with a blog post on its website. It noted several points, including who would be included, in what states, and more.

• Tesla Insurance would be for Tesla owners only
• It would be available solely in California
• It would be 20–30 percent cheaper than getting insurance through other insurers

For now, the market is minimal, but the company hopes to expand in the future. With that in mind, we delve further into Tesla customers can expect in the future.

Tesla Availability and Rates by State

As previously mentioned, Tesla insurance is only available in California.

California’s car insurance rates are mid-to-high when compared to the rest of the country. The savings range from about $1,000 compared to Farmers to $538 compared to USAA. Since Tesla is looking to expand across the country in the future, we took a look at the average full coverage rates for all 50 states and compared them to the Tesla rate at 20 percent lower.

A look at the rates represented shows that the savings can be significant, especially in expensive states like New York, New Jersey, and Michigan.

Why does Tesla believe it can offer a 20–30 percent discount? 

1. Tesla has confidence in its advanced safety features and is prepared to lower rates accordingly
2. Tesla’s insurance pairs customers with Tesla repair shops, reducing the cost compared to another, regular shop.
3. Tesla is cutting out the middlemen (agents) and can save money on commissions

Many users report lower rates with Tesla compared to Geico, AAA, and others.

– Average Tesla Male vs. Female Car Insurance Rates

California doesn’t allow insurance companies to set rates based on gender.

– Average Tesla Commute Rates

If you drive more than 12,000 miles a year, you may also see your car insurance rates start to rise. The chart below shows rates based on how far you commute.

Tesla’s savings vary from $1,100 (against Farmers) to $800 (against Liberty Mutual). Other factors, such as living in a rural or urban area, could also contribute to the cost of your insurance.

– Average Tesla Coverage Level Rates

You might think that having the lowest minimum coverage in your state is the best way to ensure you and your family are protected. But that’s not necessarily the case, because sometimes the difference in low to high coverage is less than you think.

It is unknown what coverage limits Tesla will offer, but it will be at least 15/30/5. Those are the minimum liability coverages required in California.

• $15,000 for bodily injury or death per person
• $30,000 for total bodily injury or death per accident
• $5,000 for property damage per accident

Savings for Tesla Insurance range from $490–$1,060.

Check out the table below to see the differences in coverage from other top providers.

Tesla’s savings listed are based on its advertised 20 percent discount.

– Average Tesla Credit History Rates

California does not allow insurance companies to set rates based on a person’s credit history. Other states are following suit.

Coverages Offered

It’s unclear which coverages Tesla will offer, as none are listed on the website. However, there are some typical coverages that companies provide.

Let’s take a look at common coverages offered by the top insurance providers.

Liability Coverage

Accidents happen, it’s a fact of life. Make sure you are covered regardless of who is at fault when you are involved in an accident.

When You Are at Fault:

Liability coverage covers the physical damages you inflict upon another vehicle and the bodily injuries sustained by all individuals in the other car.

When You Are Not at Fault:

Uninsured and Underinsured Motorist Coverage covers your expenses if the at-fault driver has little or no liability coverage.

This video explains more:

Vehicle Protection:

• Collision Coverage – covers vehicle repairs or replacement after an accident.
• Comprehensive Coverage – includes what most would consider “out of our control,” such as storm damage, hitting an animal, and more.
• Emergency Road Service – covers standard roadside services like tire changes, jump starts, and lockout services.
• Rental Reimbursement Coverage – includes a rental car while yours is getting repaired for a covered loss.
• Mechanical Breakdown Coverage – covers parts and systems failure of your vehicle that is not caused by normal wear and tear or improper maintenance.

Personal Protection:

• Medical Payments Coverage – covers medical expenses of those in your vehicle.
• Personal Injury Protection – covers costs incurred from injuries to yourself or others in the vehicle, lost wages and funeral expenses no matter who is at fault.
• Umbrella Policy – extends your liability coverage to a much higher limit which blankets over multiple policies such as home and auto as well as others, but most commonly used if a lawsuit is filed against you.

Additional Car Insurance Options

Depending on where you live, some of the below choices may be optional coverages.

• Collision
• Comprehensive
• Towing and Roadside Assistance
• Rental Reimbursement
• New Car Replacement
• Classic and collector car coverage

To add to these standard options, some providers go a step further and offers a couple of specialty options:

• Rideshare Coverage: coverage for anyone working for a ridesharing service (such as Lyft or Uber).
• Loan/Lease Payoff Coverage: coverage that helps you pay off the loan/lease of your vehicle if it were to be totaled during a wreck.

– Getting the Best Rate with Tesla

Discounts offered by Tesla are unclear at the moment. However, there are four that the company mentions in its FAQ section.

1. Homeowner
2. Multiple Drivers
3. Multiple Vehicles
4. Advanced Safety Features

As Tesla expands into other markets, more discounts may be available.

Canceling Your Policy

As of yet, our research has shown that there is no information about how to cancel a policy with Tesla. However, as a general rule, there are some guidelines to follow when such an occasion arises.

Here are four examples which may apply to you:

• Selling a car and not replacing it.
• Storing a classic or antique vehicle.
• A teen is heading to college and will no longer be driving the vehicle.
• A vehicle has been paid off and no longer requires comprehensive coverage.

Generally, you can cancel your policy anytime.

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How to Make a Claim

Uh, oh. You’ve been in an accident and need to file a claim. How does that work?

Tesla writes on its website:

“To report or track a claim on an existing Tesla Insurance policy, call the number on your insurance card, which is available to download through your Tesla Account. An assigned claims specialist will support you through your entire claims experience.”

Tesla will also match you with a Tesla repair center to make repairs go faster if a facility is near your location.

How to Get a Quote Online

Do you own a Tesla and live in California? If so, then you’ve met the two basic requirements to apply for coverage with Tesla.

Here’s how to do it:

• If you have an account, you can log in and get a quote online
• If you don’t have an account or would like to speak with an agent, you can call 1-844-34-TESLA (1-844-348-3772).

Tesla doesn’t have in-person agents or physical locations, so you’ll be dealing directly with the company. Of course, in the future, this fact could change if Tesla expands coverage into other states and for other vehicles.

Design of Website and App

Buying car insurance is not something any of us want to spend too much time doing. And we know there is nothing more frustrating than trying to find answers through a company’s website if the site is confusing and poorly designed.

In this section, we take a look at Tesla’s website and app to see if they are user-friendly.

Website

Tesla’s website is a storefront for its products, including its cars, solar panels, and car insurance.

When you go to Tesla’s homepage, this screen pulls up.

Click on the three bars at the top right, and insurance is one of the top selections.

The main links at the top are for its cars. You also have a link to the energy section, which takes you to Tesla’s energy branch.

How easily can you find answers?

If you’re searching for an answer, you have two options.

• Click through the links for more information.
• Go to its Support page and use its search bar.

There is not a search bar for the entire site.

Is the design a plus or minus?

The site is laid out well, with easy access to numerous parts of the company. It’s well organized and easy to navigate.

Mobile App

As Teslas are electric cars with advanced technology features, the app provides crucial functions. According to the iOS page for the app, there are at least 12 functions you can do with the app.

Here are three:

• Check charging progress in real-time, and start or stop charging.
• Lock or unlock the vehicle from afar.
• Locate your vehicle with directions or track its movement.

The app is well-reviewed on iOS, with 2,200 reviews averaging 3.8.

Google Play averages a  4.7 on over 8,433 reviews.

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Pros and Cons

Now that we have covered everything you need to know about Tesla car insurance, let’s check out the biggest takeaways in terms of pros and cons.

Until Tesla expands into other states and insures other brands of vehicles, it’s difficult to compare it to other insurance companies. Only time will tell if the company is successful or not.

The Bottom Line

We’ve shown you everything you need to know about Tesla car insurance. Have we missed anything?

One thing to consider is that everyone’s needs are different, and rates can vary significantly based on individual factors.

As thorough as this guide is, we still strongly suggest that you shop around with your personal details and specific vehicle information before you choose an auto insurance provider.

Get quotes today to find out how much you could save on car insurance.

Tesla Car Insurance FAQs

Although we’ve presented lots of information about Tesla, you may still have some questions. The following section answers some of those questions.

Is Tesla insurance expensive?

Tesla Insurance is supposed to 20–30 percent cheaper than other insurance from other carriers.

When will Tesla insurance be available?

Tesla insurance launched in late August 2019. It’s available now but only in California and only for Tesla owners. There are plans to expand the insurance availability nationwide, but there’s no definitive date on that expansion.

Who underwrites Tesla insurance?

State National Insurance Company underwrites Tesla Insurance. It’s a subsidiary of the Markel Corporation, which underwrites companies in many industries, including property and casualty insurance. State National has an A rating from A.M. Best.

How does Tesla insurance work?

Tesla purports that its insurance is 20–30 percent cheaper than other insurers.’ It does this by taking advantage of Tesla cars’ advanced safety features, pairing owners with Tesla Body Repair Centers, and cutting out agents by selling insurance directly.

How do I buy Tesla insurance?

Tesla doesn’t have any in-person agents or insurance shops you can drop into, so you have to purchase insurance directly through the company. You can do so through its website or by calling 1-844-34-TESLA (1-844-348-3772).

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