What Is Tesla Car Insurance, and How Does It Work? (2024)

If you want to protect your vehicle, having the right insurance is essential. Most insurance companies will cover any brand of vehicle, but what if you have a rather unique car, like a Tesla?

If you own a Tesla, you can usually insure it with any major carrier. However, some Tesla owners have run into issues with covered repairs. Because of the high-tech features used in these electric cars, they have specific repair needs that are quite different from those of other vehicles.

As a result, there are many auto mechanics who don’t know how to work on them. Insurance agents also might not understand what repairs are needed and how to process certain claims. Thankfully, Tesla’s manufacturers have come up with a solution: Tesla Insurance.

What Is Tesla Insurance?

No one understands Teslas better than their manufacturer, so it’s no surprise that the best insurance for Tesla vehicles is Tesla car insurance. If you’re trying to get car insurance for a Tesla Model 3, or any other Tesla for that matter, this isn’t your only option, but it’s certainly one worth considering.

These specific Tesla car insurance plans ensure that both agents and the car repair companies they partner with are familiar with the complex technology in each Tesla. However, Tesla Insurance is a new kind of coverage that is different from typical auto insurance in more ways than one.

Where Can You Get It?

Before you start digging into the specifics, you should know about one of the most important Tesla Insurance requirements: location.

The brand is working on expanding its availability, but as of now, Tesla Insurance is only offered in these states:

• Maryland

• Arizona

• Minnesota

• Utah

• Virginia

• California

• Colorado

• Texas

• Oregon

• Nevada

• Ohio

• Illinois

If you’re wondering how to get Tesla Insurance, purchasing it is quite simple if you live in one of the states listed above. While you’re welcome to get in touch with the company if you have questions, you can shop for and purchase insurance right from the Tesla app.

How Does Tesla Insurance Work?

Many car insurance companies will use your age, credit score, and gender, among other factors, when determining your insurance premium.

Tesla Insurance costs, however, are calculated differently. When determining your pricing, the brand uses what it calls a Safety Score, which is calculated based on the following factors:

Forward Collision Warnings per 1,000 Miles

Collision warnings sense people, animals, objects, and other cars that pose an immediate crash risk. If you often receive these warnings, they might be a sign that you’re more likely to get into a crash.

Aggressive Turning

This happens when you enter a turn going too fast.

Hard Braking

Frequently having to slam on the brakes might mean you routinely follow other cars too closely. However, if you’re looking for car insurance for a Tesla Model Y manufactured in the last couple of years, hard braking might not be too much of a concern. That’s because the car may be able to sense yellow lights, and hard braking at them doesn’t count toward your safety score, anyway.

Excessive Speeding

This is one of the most common causes of serious car accidents.

Unsafe Following

Teslas can measure the distance between themselves and the car in front. If that distance is dangerously close, you may be penalized.

Late-Night Driving

Even if you’re a safe driver, driving late at night puts you at risk of car crashes.

Forced Autopilot Disengagement

This is when you spend too long not touching the steering wheel or aren’t paying attention while the car is on autopilot.

Unbuckled Driving

If you don’t wear a seat belt, you’re more likely to be hurt in an accident.

Tesla Insurance vs. Others

It can be hard to choose between Tesla Insurance coverage and that from another carrier. But if the following statements are true, you might find that Tesla Insurance is the better choice:

• You want to ensure that agents and mechanics will understand how to process a Tesla insurance claim

• You don’t mind purchasing coverage from a relatively new company

• You are a consistently safe driver.

• You have multiple vehicles to insure

On the other hand, you might prefer another insurance company if the following are true:

• You want the certainty that comes with a set monthly premium

• You want to be able to bundle other kinds of insurance with

• Your demographic info is associated with lower insurance rates

• You prefer working with an established insurance company

Premiums are often comparable, but you may find yourself asking, “Why is Tesla insurance so high?” The answer is relatively simple: Teslas are high-end cars, and because they’re expensive for an insurer to fix, they’re expensive to insure.

What Do Tesla Insurance Reviews Say?

Some people are happy with their Tesla Insurance coverage, but certain reviews and investigative reports seem to suggest that they’re in the minority. It’s been found that Tesla Insurance has already dealt with multiple lawsuits, many of which allege that premiums increased due to faulty crash warnings. Many customers have also experienced delays in claims processing because the business is new and thus understaffed.

ConsumerShield: Your Source for Legal and Insurance Information

Protecting your rights as a vehicle owner starts with gaining a complete understanding of your insurance policy. However, unless you have an established legal background, truly understanding your insurance policy and how it works can be a challenge.

At ConsumerShield, we’re dedicated to helping you understand what rights you have as a consumer. And if need be, we can connect you with attorneys who can advocate for you. If you have questions, need legal guidance, or just want to connect, fill out our online contact form.