Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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Key takeaways:

  • Full coverage costs around $1,802 a year or $150 each month
  • A liability-only policy costs around $722 a year or $60 each month
  • Highest rates are for teenage drivers at around $6,586 a year or $549 each month
  • Good drivers can save as much as $743 a year by earning policy discounts
  • Tesla Model 3 insurance costs around $283 more per year than the average vehicle

Tesla Model 3 are pretty fun to drive, but the insurance rates are about $283 more per year than the average vehicle. Full coverage costs around $1,802 a year or $150 a month, but good drivers can qualify for up to $743 a year in policy discounts by practicing safe driving habits. Let’s take a closer look at Tesla Model 3 insurance rates, crash test ratings, and more.

You can start comparing quotes for Tesla Model 3 car insurance rates from some of the best car insurance companies by using our free online tool now.

Tesla Model 3 Insurance Cost

The average Tesla Model 3 auto insurance costs are $1,802 a year or $150 a month.

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Are Tesla Model 3s Expensive to Insure?

The chart below details how Tesla Model 3 insurance rates compare to other electric luxury sedans like the Tesla Model S.

Vehicle Comprehensive Collision Liability Total
Tesla Model 3 $444 $906 $316 $1,802
Tesla Model S $582 $1,186 $316 $2,220
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However, there are a few things you can do to find the cheapest Tesla insurance rates online.

What Impacts the Cost of Tesla Model 3 Insurance?

The Tesla Model 3 trim and model you choose will affect the total price you will pay for Tesla Model 3 insurance coverage.

Age of the Vehicle

Older Tesla Model 3 models generally cost less to insure. For example, car insurance for a 2020 Tesla Model 3 costs $1,802, while the 2018 Tesla Model 3 insurance costs are $1,744, a difference of $58.

Model Year Comprehensive Collision Liability Total
2020 Tesla Model 3 $444 $906 $316 $1,802
2019 Tesla Model 3 $424 $870 $332 $1,762
2018 Tesla Model 3 $406 $864 $338 $1,744
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Driver Age

Driver age can have a significant impact on the cost of Tesla Model 3 auto insurance. For example, 20-year-old drivers pay approximately $2,204 each year for their Tesla Model 3 auto insurance than 30-year-old drivers.

Driver Location

Where you live can have a large impact on Tesla Model 3 insurance rates. For example, drivers in New York may pay $468 a year more than drivers in Chicago.

Your Driving Record

Your driving record can have an impact on your Tesla Model 3 auto insurance rates. Teens and drivers in their 20’s see the highest jump in their Tesla Model 3 car insurance with violations on their driving record.

Tesla Model 3 Safety Ratings

The Tesla Model 3’s safety ratings will affect your Tesla Model 3 auto insurance rates. See the chart below:

Test Type Rating
Small overlap front: driver-side Good
Small overlap front: passenger-side Good
Moderate overlap front Good
Side Good
Roof strength Good
Head restraints and seats Good
Source: Insurance Institute for Highway Safety
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Tesla Model 3 Crash Test Ratings

The crash test ratings of the Tesla Model 3 can impact your Tesla Model 3 car insurance rates.

Vehicle Tested Overall Frontal Side Rollover
2020 Tesla Model 3 4 DR RWD 5 stars 5 stars 5 stars 5 stars
2020 Tesla Model 3 4 DR AWD 5 stars 5 stars 5 stars 5 stars
2019 Tesla Model 3 4 DR RWD 5 stars 5 stars 5 stars 5 stars
2019 Tesla Model 3 4 DR AWD 5 stars 5 stars 5 stars 5 stars
2018 Tesla Model 3 4 DR RWD 5 stars 5 stars 5 stars 5 stars
2018 Tesla Model 3 4 DR AWD N/R N/R 5 stars 5 stars
2017 Tesla Model 3 DR RWD N/R N/R N/R N/R
1-5 Star Rating Scale, N/R = No Rating | Source: National Highway Traffic Safety Administration
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Tesla Model 3 Safety Features

The safety features of the Tesla Model 3 can impact your Tesla Model 3 car insurance rates. The Tesla Model 3 has the following safety features:

  • Driver Air Bag
  • Passenger Air Bag
  • Front Head Air Bag
  • Rear Head Air Bag
  • Front Side Air Bag
  • 4-Wheel ABS
  • 4-Wheel Disc Brakes
  • Brake Assist
  • Electronic Stability Control
  • Daytime Running Lights
  • Child Safety Locks
  • Traction Control
  • Blind Spot Monitor
  • Auto-Leveling Headlights
  • Lane Departure Warning
  • Lane Keeping Assist
  • Cross-Traffic Alert

Tesla Model 3 Finance and Insurance Cost

If you are financing a Tesla Model 3, most lenders will require your carry higher Tesla Model 3 coverage options including comprehensive coverage, so be sure to shop around and compare Tesla Model 3 car insurance quotes from the best companies using our FREE tool below.

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Ways to Save on Tesla Model 3 Insurance

Drivers can end up saving more money on their Tesla Model 3 car insurance rates by employing any one of the following strategies.

  • Reduce Your Coverage on an Older Tesla Model 3
  • Choose a Tesla Model 3 with Cheaper Repair Costs
  • Check Reviews and State Complaints Before You Choose an Insurer
  • Don’t Always Pick the Cheapest Tesla Model 3 Insurance Policy
  • Improve Your Credit Score

Top Tesla Model 3 Insurance Companies

Who is the top auto insurance company for Tesla Model 3 insurance rates? While the actual rates you pay will depend on many factors, here are some of the top companies offering Tesla Model 3 auto insurance coverage (ordered by market share). Many of these companies offer discounts for security systems and other safety features that the Tesla Model 3 offers.

Rank Company Volume Market Share
1 State Farm $65,615,190 9.3%
2 GEICO $46,106,971 6.6%
3 Progressive $39,222,879 5.6%
4 Liberty Mutual $35,600,051 5.1%
5 Allstate $35,025,903 5.0%
6 Travelers $28,016,966 4.0%
7 USAA $23,483,080 3.3%
8 Chubb $23,388,385 3.3%
9 Farmers $20,643,559 2.9%
10 Nationwide $18,442,145 2.6%
Source: Insurance Information Institute
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Compare Free Tesla Model 3 Insurance Quotes Online

Start comparing Tesla Model 3 car insurance quotes for free by using our convenient online comparison tool.

We have come to associate electric cars with Tesla, however, they are not the only players in the game anymore. In 2017, customers have been spoiled with choice for electric cars, with industry giants like Nissan, Chevrolet, and Ford bringing out their own models onto the market.

All three car manufacturers are now producing budget-friendly vehicles that are way more affordable than Tesla’s 3 Model.

However, Tesla’s ultimate objective has never been making high-end electric cars. On the contrary. They started out with a business plan that aimed to release a great, affordable electric car for the masses.

The company decided to start out with high-end, expensive models in order to test their capabilities, receive feedback from their clients, and learn how to make cheaper electric vehicles.

Tesla is now almost ready to release Model 3 that emits zero exhaust gas and aims to revolutionize the way we drive.

Compare car insurance quotes using our free rate tool above. Just enter your zip code to get started.

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4 Facts about the Tesla Model 3

“We finally have a great, affordable electric car,” Elon Musk said when he revealed his company’s latest zero emissions electric vehicle.

Indeed, what the CEO of Tesla said is true: “We’ve had great electric cars and we’ve had affordable electric cars, but the two never really overlapped.”

These are exciting times for the car manufacturing industry as well as for consumers.

Here are some facts about the Tesla Model 3 that are piquing the interest of thousands of people around the world.

#1 – 63,000 People Cancelled Their Tesla Model 3 Reservations

During the quarterly earnings call in August, Ellon Musk revealed that the total orders for the Tesla Model 3s dropped from around 518,000 to 455,000.

Customer deliveries are scheduled to begin in fall 2017 but the Tesla CEO did not seem concerned with the huge number of cancellations and suggested that these are only a drop in the bucket.

Although the large number of people who have withdrawn their pre-orders might seem ominous to some, Musk is relieved. His analogy with a waiting line for hamburgers makes us see the cancellations in a different light.

In order to meet the demand for their entry-level electric luxury sedan, Tesla had to come up with a simplistic and minimal approach both to the car’s features and to the production of the vehicles.

Thus, losing 63,000 orders on the Tesla Model 3s is a blessing in disguise that will allow the company to stay on track and have more time to honor the pre-orders that are still active.

#2 – The Tesla Model 3 Has a Radically Minimalist Interior

Both the S and X Tesla Models are known for their futuristic, minimalist approach to design. They combine top-notch technology with simple solutions to create a space-age interior. The Tesla Model 3 will be no exception.

Stepping into it does make for a futuristic experience, especially when you discover that there is nothing behind the steering wheel:

In an attempt to explain the drastic change, Elon Musk wrote on Twitter that “the more autonomous a car is, the less dash info you need. How often do you look at the instrument panel when being driven in a taxi?”

The news quickly split people into two teams:

  • those who agree with the Tesla CEO
  • those who are not planning to rely on autopilot and require a speedometer right behind the steering wheel

Tesla’s new approach and the backlash it’s getting resembles other memorable technological changes we’ve seen in the past decades such as mobile phones with no buttons, laptops with no DVD readers, and, more recently, the latest iPhone with no headphone jack.

#3 – The Tesla Model 3 Is Not Really that Affordable

When compared to the previous S and X models, the latest Tesla vehicle is a much cheaper and affordable option for the masses. But a closer look at the features included in the $35,000 price tag might disappoint you.

As CNNTech pointed out, customers who aspire to drive a Tesla Model 3 that is not black will have to pay an extra $1,000. If you also like how the 19-inch sports wheels look like (who doesn’t?) you will have to add $1,500 more. These are just some of the affordable add-ons.

To get the “Enhanced Autopilot” that allows the vehicle to self-park, keep pace with traffic and change lanes, customers will have to fork over $5,000. What about “full self-driving capability?” If that sounds enticing, you’ll have to add an extra $3,000.

Shopping for insurance for your Tesla will reveal other pricey expenses. Car insurance quotes range wildly based on the company and the options you select.

When you’re comparing quotes online you have to fully understand the coverage you are getting and pay attention to limits and deductibles. Opting for the cheapest policy is not always the smartest way to go.

Oftentimes, the cheapest will offer the least amount of coverage. That’s not what you want when you’re driving a $40,000 Tesla Model 3.

The golden rule when comparing insurance plans online is to research all policies until you find the perfect fit: the most coverage that you can pay for comfortably.

#4 – No Free Supercharging for Tesla 3 Models

The Tesla Supercharger Network was introduced in 2012. Its aim was to allow Tesla drivers to travel long distance conveniently all across the US as well as outside it.

In November 2016, Tesla made a public announcement that all vehicles purchased after January 15th, 2017 will come with “400 kWh of free Supercharging credits (roughly 1,000 miles).”

In other words, new Tesla drivers will not benefit from unlimited supercharging and will have to pay a small fee for using the company’s quick chargers.

Tesla has not yet announced how much they will charge for this service, however, they claimed it will cost less than filling up a gas car. It is possible that Tesla will implement a service for paying for future use up front, similar to previous models.

Conclusion

The Tesla Model 3 is surrounded by a lot of hype both within and outside of the US. The model hit the road in August 2017 when the first 30 vehicles of the production line were handed over to customers (mainly Tesla employees).

As of now, over half a million people have already pre-ordered the Model 3. According to Tesla’s schedule, several thousand more Model 3s will be manufactured by the end of 2017.

With so many reservations, those who are considering pre-ordering the Model 3 now will have to wait in line to receive their car until late 2018.

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