Best Auto Insurance for Tesla

For some of the best Tesla rates, look no further than State Farm. In addition to its affordability, the company is known for its high customer satisfaction and easy claims process.

Affordable Rates

State Farm offers some of the best auto insurance rates, with an average annual cost of $2,097 for electric vehicles. You might pay more than that to insure a Tesla, depending on the model you own. But overall, State Farm offers significantly lower rates for Teslas compared with the competition.

Additionally, State Farm has a number of discounts that can lower your monthly rates:

• Drive Safe & Save: Save up to 30 percent for good driving habits, plus an initial discount for enrolling.
• Accident-free: Pay less for maintaining an accident-free record.
• Good driver: Get a discount if you have had no moving violations or at-fault accidents in the past three years.
• Defensive driver course: Take a driving safety course on defensive driving and earn savings.
• Safe vehicle: Get a discount for your Tesla’s features, like its safety rating, passive restraints, and anti-theft technology.
• Multiple vehicles: Add another vehicle in your household (whether it’s a Tesla or another vehicle) and save.
• Bundling: Lower your rates by purchasing another State Farm insurance product, like homeowner’s or condo insurance.

Coverage for Your Home Charging Station

One of the biggest benefits of owning a Tesla is that you don’t have to rely on traditional fuel sources, especially with rising gas prices. Plus, you can charge your car at home rather than going to the gas station.

Although you can charge your Tesla with a regular 120-volt household outlet (“Level 1”), a recent J.D. Power study found that EV drivers are more satisfied with dedicated at-home charging stations (“Level 2”).² According to Tesla, it can cost around $750 to $1,500 to install one of these stations, and the charging station itself costs either $450 for a wall connector, or $620 for a universal wall connector.³

State Farm stands out because your policy can cover an at-home charging station as part of your comprehensive and collision coverages.⁴ Other providers like Farmers and Liberty Mutual will not cover the station, or, like USAA, might require you to purchase homeowner’s insurance to insure the station.

Rental and Travel Reimbursement

While Teslas require less maintenance than traditional vehicles, they are known for easily sustaining damage in accidents. Even a simple fender bender may necessitate a trip to the repair shop. If your Tesla is out of commission, State Farm has you covered in the meantime.

Customers who purchase rental and travel expenses coverage will benefit from State Farm’s superior offering, which includes the following benefits:

• Up to your daily and per claim limits for a rental car if your car isn’t driveable due to a comprehensive or collision claim
• Up to $500 for meals, lodging, and travel expenses if your car sustains damage more than 50 miles from home, as well as a return trip to pick up your car.
• Up to $500 toward the deductible if you’re involved in a covered-loss accident in a rental car.

It’s a strong offering, considering most insurance companies only include the cost of a rental car with this type of coverage and require you to buy roadside coverage for additional assistance.

With over 16 million customers, Allstate holds about 10 percent of the private auto insurance market and is the fourth-largest provider in the country.⁵ The company offers a range of coverages that will keep you protected. Available in all 50 states and Washington, D.C., Allstate is a good choice for your Tesla no matter where in the U.S. you live.

Roadside Coverage Options

Many Tesla drivers are familiar with “range anxiety,” or the worry of running out of battery before reaching a power station. While Teslas come with a number of features to help you avoid this situation, it’s good to know you’re covered if fears become reality.

Allstate offers two roadside assistance plans, which include a flatbed tow truck if your Tesla runs out of juice or experiences another problem that renders it undrivable. On top of that, All State covers common issues you might experience in any car, such as lockouts or flat tires.

With either plan, the roadside assistance is 24/7 and includes:

• Maximum of five rescues per year
• Towing for up to 10 miles each
• Battery jumpstart
• Fuel delivery (includes cost of fuel)
• Lockout services
• Tire changes

New-Car Discount

Electric vehicles make up 16 percent of all light-duty car sales in the United States, and Teslas are the most popular EVs.⁷

If you’re one of the many people who bought a new Tesla in the past year, you can benefit from Allstate’s new car discount. You qualify for this discount if you meet the following criteria:

• Your Tesla is the current model year or one year prior.
• You’re the first person to own the vehicle.

Additionally, Teslas come with these safety features that will earn you savings:

• Anti-lock brakes
• Anti-theft technology

These features make auto theft less likely, meaning there’s a smaller chance that you’ll file a comprehensive claim.

Car Buying Service

Ninety percent of households with electric vehicles own other vehicles as well (usually nonelectric ones).⁹ If you plan to buy another vehicle in addition to your Tesla—maybe for longer road trips, or to tow heavy loads—you might benefit from Allstate’s car buying service.

Car buying services streamline the purchasing process, thus helping you avoid the hassle of negotiating at a dealership. Allstate partners with TrueCar to offer this perk, which provides the following benefits:

• Price transparency: You’ll see what other people paid for the same vehicle, which can help you establish a fair price.
• Vehicle comparison: You can compare new and used vehicles on a single online platform, thereby avoiding the hassle of shopping in multiple places.
• Upfront pricing: You can see how much a vehicle will cost before you go to the dealership.
• Trade-in or sell option: You get a cash offer to sell or trade in your vehicle while shopping.

Allstate offers this service free to existing customers and cites an average savings of $1,167 off a vehicle’s MSRP, for customers who saved between October and November, 2023

Founded nearly a century ago by two ranchers who believed farmers deserved to pay less for auto insurance than urbanites, Farmers continues to offer low rates today. It serves 10 million households (not just farmers anymore!) and has more than 48,000 exclusive and independent agents. It’s a good option for your Tesla.

Discounts and Low Rates

In addition to providing low rates from the get-go, Farmers offers a whopping 22 discounts, including the following:

• Alternative fuel: Drivers of EVs and hybrids in California ((where most electric vehicles are registered¹⁰) get a 5 to 10 percent discount.
• Homing device: All Teslas come with a GPS tracker that can locate a stolen car, which will also earn you a discount.
• Homeowner: Many Tesla drivers own their home, which gets you a discount, regardless of whether you insure your home with Farmers.
• Multicar: Get a discount for insuring multiple vehicles in your household with Farmers.
• Vehicle features: Your Tesla comes with anti-lock brakes, an anti-theft system, and passive restraint systems, all of which earn you a discount.

But note that certain discounts aren’t available to California residents, including discounts for paying on time, sharing a family car with a driver up to age 20, or using Signal, Farmers’ usage-based insurance program.

New-Car Replacement

The starting price of a new Tesla is over $30,000 and can even creep toward $70,000 with the Cybertruck.. It’s a big purchase, and it’s natural to want to protect it.

Farmers has a number of optional coverages beyond what many insurers offer. One of these is new car replacement coverage. If your new Tesla is totaled within the first two model years or 24,000 miles, Farmers will pay for a replacement vehicle.

Windshield and Glass Coverage Options

Tesla windshields are more expensive to replace than those of other vehicles, so it may be wise to purchase one of the windshield and glass coverages that Farmers offers. Replacing a Tesla windshield will run you around $1,500, compared with $200 to $400 for other vehicles. That’s because Tesla’s panoramic windshield design has a unique shape and is larger than the windshields on other vehicles.

If your windshield cracks due to something like a falling branch or a wayward golf ball, your comprehensive coverage will pay to replace it. However, you’re still on the hook for your deductible, which can be hundreds of dollars. Farmers offers a Glass Deductible Buy Back for an additional cost, that will cover windshield and glass repair/replacement. You’ll only pay a $100 deductible.

Note that you must have collision coverage to purchase additional windshield and glass coverage. Additionally, the extra coverage doesn’t apply to windshield damage sustained in an accident. (Collision coverage will pay for that.)

Another popular auto insurance provider, Liberty Mutual offers a number of coverage options. You’ll save when you bundle it with another policy, particularly homeowner’s insurance.

Savings for Homeowners

In general, customers who saved when they switched to Liberty Mutual saved around $950 when they bundled home and auto insurance between October of 2021 and September of 2022.. Additionally, nearly nine in 10 people who own Teslas own homes, which can translate to savings for auto and home insurance.¹¹

If you have a Level 2 home charging station, you can protect it on your homeowner’s policy. Additionally, homeowners get discounts on auto insurance even if they don’t have homeowner’s policies with Liberty Mutual.

Many Coverage Options

Liberty Mutual is known for its array of additional coverage options, many of which can benefit you and your Tesla. For example, Liberty Mutual offers these add-ons:

• Original parts replacement: Tesla replacement parts tend to cost more than regular ones, and less-expensive aftermarket parts can be hard to come by (additionally, using non-Tesla parts will void your warranty). Liberty Mutual offers a coverage add-on that ensures you won’t pay extra for using original equipment manufacturer (OEM) parts.
• New car replacement: If your new Tesla is totaled within one year and less than 15,000 miles, Liberty Mutual will pay you the amount to buy a brand-new Tesla of the same model.
• Better car replacement: In the event you experience a total loss, Liberty Mutual will give you money for a Tesla that is one model year newer and with 15,000 fewer miles on it. This helps you avoid owing more on a totaled car than what it’s worth.

Gap Coverage for Financed and Leased Teslas

A recent survey found that Tesla owners take longer loan terms than owners of other vehicles, with an average loan term of about 70 months.¹²

In general, if you financed your vehicle for 60 months or more (or leased it), it’s a good idea to consider gap coverage. Long loan terms translate to lower monthly payments. That means that, for the first few years, you’ll owe more on the Tesla than what it’s worth, due to depreciation. In the event of a total loss, gap coverage will pay for the difference between the actual cash value of your Tesla (the insurance payout) and the amount you owe the lender.

Buying gap coverage at the dealership tends to be the most expensive route (around $500 to $700 annually), while adding the coverage to your policy will usually increase your premiums by only a few dollars a month (around $40 a year). Not all insurance providers offer gap insurance, so Liberty Mutual may be a good option if you need this coverage.

USAA sells insurance to members of all branches of the military, veterans and their families. It has some of the lowest insurance rates for Teslas: an average of $1,766 per year, the lowest on this list, followed by State Farm at $2,097. In addition, USAA offers a number of other financial services, like retirement accounts and no-monthly-fee banking. If you’re eligible, we recommend insuring your Tesla with USAA.

Low Rates

USAA is known for its low-cost auto insurance, and its rates for Teslas are no exception. In particular, USAA offers the lowest rates of any insurance provider for the Model 3, one of Tesla’s most popular models. To insure a Model 3 with USAA, expect to pay around $1,300 annually (around $108 per month). That’s a few hundred dollars less than the next cheapest provider’s rate.

For Tesla Models Y, X, and S, expect to pay around $2,100 annually (around $175 per month), which is still very competitive.

In addition, USAA customers can save with these discounts:

• Maintaining a clean driving record.
• Garaging your Tesla at a military installation.
• Taking a defensive driver or driver education course.
• Tracking your driving with an app.
• Bundling homeowner’s or renter’s insurance.
• Owning a Tesla that’s less than three years old.
• Driving fewer miles.

Exceptional Financial Strength

USAA has a superior rating of A++ for financial stability from AM Best, meaning you can trust this insurer to pay for a Tesla auto claim (which can be pricey). In addition, it has an AA+rating from Standard and Poor’s, as of the most recent review date: May 24, 2023. Bottom line: in the event you need to file a claim for your Tesla, expect to get reimbursed, as this is an extremely financially stable company.

Roadside Assistance

USAA offers roadside assistance as a policy add-on. If you buy this optional coverage, you won’t have to pay much when you actually use the service. When you call for assistance, USAA will have a service provider arrive within 60 to 90 minutes. You can even receive service if you take your Tesla across the border to Canada.

Additionally, USAA is unique in that even if you don’t buy roadside assistance coverage, you can still call for help and you’ll receive assistance at a negotiated lower rate.