Compare Tesla Model 3 Insurance Quotes [Rates + Cheap Coverage Guide]

Are you ready to compare Tesla insurance quotes for the Model 3? The average cost of full coverage car insurance for the Tesla Model 3 is $150/mo or $1,802 annually. However, good drivers can save up to $743 a year by earning policy discounts. Remember, your age, personal driving record, and the state you live in will also influence your Tesla Model 3 insurance rates. Keep reading to discover your best policy.

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D. Gilson is a writer and author of essays, poetry, and scholarship that explore the relationship between popular culture, literature, sexuality, and memoir. His latest book is Jesus Freak, with Will Stockton, part of Bloomsbury’s 33 1/3 Series. His other books include I Will Say This Exactly One Time and Crush. His first chapbook, Catch & Release, won the 2012 Robin Becker Prize from Seve...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Apr 27, 2021

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The Highlights

  • How much is insurance on a Model 3? Full coverage insurance costs around $150 per month or $1,802 annually.
  • A liability-only policy for the Model 3 costs around $60 per month or $722 a year.
  • Teenagers receive the highest Model 3 rates at $549 per month or $6,586 annually.
  • Good drivers can save as much as $743 a year on their car insurance by earning policy discounts.
  • Car insurance costs around $283 more per year than the average vehicle.

Looking for affordable Tesla Model 3 car insurance rates? You’ll find your best annual costs if you compare insurance quotes from multiple different companies. The average cost of insurance is about $150 per month or $1,802 annually. However, many factors impact your individual rates.

The car costs $283 more per year to insure than the average vehicle, partly because of its high price tag. Fortunately, you can save money if you compare car insurance rates for your vehicle. Read through our complete guide to learn what goes into calculating your premiums.

You’ll also learn how good drivers can save around $743 a year for remaining claim-free. Let’s look at the insurance rates, safety ratings, and more.

If you are ready to buy car insurance, we’ve got your back.  Just enter your five-digit ZIP code into your FREE quote tool above to immediately receive quotes.

How much does your insurance cost for a Model 3?

How much does Tesla Model 3 insurance cost? The average insurance rates are $1,802 a year or $150 a month for full coverage for the car.

In the graph below, see how these rates change depending on if you qualify for car insurance discounts, or if you’re a high-risk driver. Rates based on deductible levels and age are also shown.

As you can see, many variables impact your overall auto insurance rates. From the level of coverage you choose to purchase, to your personal driving history, each company uses slightly different formulas when calculating quotes.

Therefore, we always recommend comparison shopping. By comparing rates from different providers, you’ll be able to find your cheapest policy without compromising coverage. Read on to learn more.

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Are Tesla Model 3s expensive to insure?

Is it expensive to insure a Tesla Model 3? According to our research, this vehicle costs $283 more to insure per year than the average vehicle. However, this is largely because the vehicle is considered to be a luxury electric sedan.

Electric vehicles sometimes require special mechanics for scheduled maintenance. This can cost insurance providers a lot of money in the event a claim is ever filed. To make up for those additional costs, your insurance rates are going to be higher than average.

Similarly, many drivers invest in full coverage policies to keep their vehicle well protected. Full coverage car insurance will always cost more than a basic liability-only policy.

In the table below, see how the average annual insurance rates compare to another electric luxury sedan.

Tesla Model 3 Average Annual Car Insurance Rate by Coverage Level Compared to the Tesla Model S
Vehicle Make and ModelAverage Annual Comprehensive Car Insurance RatesAverage Annual Collision Car Insurance RatesAverage Annual Liability Car Insurance RatesAverage Annual Full Coverage Car Insurance Rates
Tesla Model 3$444$906$316$1,802
Tesla Model S$582$1,186$316$2,220
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The Tesla Model 3 costs quite a bit less to insure than the Model S. This is likely because the Model S costs twice as much as the Model 3.

Fortunately, there are a few things you can do to find the cheapest Tesla insurance rates online. Keep reading.

What impacts the cost of your car insurance?

You might have noticed that there is a multitude of factors that impact car insurance rates. Your age, location, driving record, and model year all play a role in what you will ultimately pay to insure your car.

In the next section, we’ll cover all of these factors in greater detail and explore more average annual insurance rates.

How does the age and trim of your vehicle affect your car insurance rates?

Typically, older vehicles cost less to insure than newer vehicles. This is because newer cars usually have more technology and features that cost more to replace in the event a claim is filed, so the damage repair costs of older vehicles are simply less and therefore the cost of insurance is less.

Take a look at the table below to compare the average annual car insurance rates for different model years.

Tesla Model 3 Average Annual Car Insurance Rates by Coverage Level and Model Year
Tesla Model 3 Model YearAverage Annual Comprehensive Car Insurance RatesAverage Annual Collision Car Insurance RatesAverage Annual Liability Car Insurance RatesAverage Annual Full Coverage Car Insurance Rates
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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As you can see from the data above, older models generally cost less to insure than the news versions.

For example, auto insurance rates for a 2020 Model 3 are $1,802, while the 2018 Model 3 rates are only $1,744. That’s a difference of $58 annually. Because this is a more modern vehicle, the difference in price between model years is currently not substantial.

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How does your age impact your car’s insurance premiums?

Driver age can have a significant impact on your auto insurance rates. Insurance providers equate age to driving experience. Older drivers also tend to make safer driving choices than teenagers.

In the graph below, you can compare average annual auto insurance rates for the car by driver age.

According to these rates, 20-year-old drivers pay approximately $2,204 more each year for their auto insurance than 30-year-old drivers.

Luckily, your auto insurance costs decrease dramatically when you turn 25. Until then, if you’re a younger driver and are in school, consider applying for good student discounts. Safe driver discounts and option driver’s education courses can lead to even more potential savings.

How does where you live affect your car insurance rates?

Where you live can have a large impact on insurance rates. Car insurance limits and laws vary by state, therefore, average rates look very different depending on your ZIP code.

In the table below, check out how much it costs on average to insure a Tesla Model 3 in major cities across America.

Drivers in Los Angeles, one of the biggest cities in the country, pay an average of $666 more per year than drivers in Philadelphia. Philadelphia is also a large city, however the population density is lower than Los Angeles.

Typically, living in regions with very dense populations, higher vehicle theft rates, and higher accident rates leads to higher than average auto insurance costs.

How does your driving record affect your car insurance rates?

Your driving history will affect the cost of your Tesla Model 3 auto insurance. Safe drivers with better driving habits and a clean driving record qualify for more discounts and receive some of the best rates.

Oppositely, high-risk drivers with a rocky driving past will receive much higher than average rates. See how different traffic violations can impact your insurance costs in the graph below.

Looking at the data above, teens and drivers in their 20s see the highest jump in their car insurance with violations on their driving record.

Safe driving always pays off. If you commit too many serious traffic violations, some major providers might refuse to insure you altogether.

However, if you only have one or two minor violations on your record, consider asking your provider about any accident forgiveness programs being offered. You might be able to lower your rates this way.

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How does a car’s safety ratings impact your car insurance rates?

The safety ratings of any car will influence your auto insurance rates. The Insurance Institute for Highway Safety (IIHS) performs tests for various vehicles on the market today. Cars that receive the highest marks are labeled as the Top Safety Picks.

See the 2020 Tesla Model 3 safety ratings in the table below. Keep in mind that a rating of ‘Good’ is the highest possible score given by the IIHS.

2020 Tesla Model 3 Safety Ratings

Test TypeRating
Small overlap front: driver-sideGood
Small overlap front: passenger-sideGood
Moderate overlap frontGood
SideGood
Roof strengthGood
Head restraints and seatsGood
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All in all, the car had nearly perfect scores from the IIHS. In fact, this car was labeled as one of the Top Safety Picks Plus. This means that the headlights passed exceeded new, stricter guidelines.

These stellar safety ratings are likely one of the reasons why the car’s insurance costs are so low for a luxury car.

How will a car’s crash test ratings impact your car insurance?

Like safety ratings, crash test ratings will also impact your insurance costs. The National Highway Traffic Safety Administration (NHTSA) is part of the Department of Transportation and checks for a vehicle’s durability and safety level in the event of an accident.

See the details of the Tesla Model 3 crash test ratings for various model years in the table below.

Tesla Model 3 Crash Test Ratings by Model Year and Trim Level
Tesla Model 3 Model Year and Trim Level TestedOverall Crash Test RatingsFrontal Crash Test RatingsSide Crash Test RatingsRollover Crash Test Ratings
2020 Tesla Model 3 4 DR RWD5 stars5 stars5 stars5 stars
2020 Tesla Model 3 4 DR AWD5 stars5 stars5 stars5 stars
2019 Tesla Model 3 4 DR RWD5 stars5 stars5 stars5 stars
2019 Tesla Model 3 4 DR AWD5 stars5 stars5 stars5 stars
2018 Tesla Model 3 4 DR RWD5 stars5 stars5 stars5 stars
2018 Tesla Model 3 4 DR AWDN/RN/R5 stars5 stars
2017 Tesla Model 3 DR RWDN/RN/RN/RN/R
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A 5-star rating is the highest possible score given by the NHTSA. As you can clearly see from the data, the Tesla Model 3 has received flawless scores nearly every year. This will reflect well on your auto insurance costs.

Do safety features affect your rates?

If your vehicle has specific safety features or an anti-theft device package installed, you might qualify for some great car insurance discounts.

Luckily, the Tesla Model 3 has many safety features that play a vital role in keeping passengers safe in crashes. These features include:

  • Driver Air Bag
  • Passenger Air Bag
  • Front Head Air Bag
  • Rear Head Airbag
  • 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

Ask your provider about any discounts your vehicle may be eligible for. Some discounts are not advertised publicly.

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What kind of car insurance coverage do you need on a financed vehicle?

If you are financing your car, you might be required to purchase a full coverage policy for the duration of your auto loan term.

The full coverage policy typically includes your state’s minimum auto insurance requirements, as well as additional comprehensive and collision coverage. Because the Tesla Model 3 is a luxury car, it would be wise to invest in extra coverage even if you’re not financing the vehicle.

The dealership might offer you an insurance policy. However, you will pay more if you purchase your car insurance this way.

We recommend shopping around and comparing car insurance quotes from the best companies before selecting a policy.

How can you save on your insurance policy?

If you want to reduce the cost of your insurance rates, we have a few tips for you. First, choose automatic payments for your insurance policy. By not missing any payments, you’ll avoid losing coverage, which will help maintain your rates.

Next, keep your driving record clean. A serious infraction, like a DUI, will increase your rates astronomically. However, by remaining claim-free, you can save upwards of $743 on your auto insurance.

Finally, take a look at customer service reviews and complaints before choosing your insurer. A cheap policy is not worth it if the provider is unresponsive when you need to file a claim. The best insurance companies will provide you with great service and great rates. 

Who are the best car insurance companies for your Model 3?

Who is the top car insurance company for the Tesla Model 3? While the actual rates you pay will depend on many factors, here are some of the top companies offering auto insurance coverage ordered by market share.

Top 10 Tesla Model 3 Car Insurance Companies by Market Share
RankCompaniesVolumeMarket Share
1State Farm$65,615,1909.30%
2GEICO$46,106,9716.60%
3Progressive$39,222,8795.60%
4Liberty Mutual$35,600,0515.10%
5Allstate$35,025,9035.00%
6Travelers$28,016,9664.00%
7USAA$23,483,0803.30%
8Chubb$23,388,3853.30%
9Farmers$20,643,5592.90%
10Nationwide$18,442,1452.60%
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Many of these companies offer discounts for security systems and other safety features that the vehicle features.

See more details about the market share for each of these car insurance companies in the graph below.

Choosing a company that holds a large portion of the market share is an easy way to ensure that your provider is financially stable. You want to trust that any claims you file can be pad out, even in the event of an economic downturn.

You are now an expert on finding affordable auto insurance options. As you now know, the best insurance for any vehicle varies from person to person. Refer back to this guide as much as needed while you search for your best rates.

Ready to compare Tesla Model 3 insurance quotes? Get started right now and receive quotes by entering your five-digit ZIP code into our FREE online tool below

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