The 5 Most Expensive States To Insure A Tesla (According To MarketWatch)

Purchasing a Tesla or any electric vehicle (EV) can seem like an investment in the environment and sustainable technology. While the sticker price can be high depending on the model you buy, you probably hope to come out ahead in the long run, thanks to government incentives like the EV tax credit and lower fuel costs, which can offset some of the upfront costs of the vehicle. What you might not consider when calculating the financial outlay for a Tesla is how much it costs to insure.

Insurance costs for Teslas can vary widely based on things like your car's model, the state you're insuring it in, and, of course, your driving record. Teslas are notoriously expensive to insure for reasons including their specialized parts, which make them more costly to repair than other types of vehicles. While the automaker offers its own in-house insurance option, which can lower the cost of insuring a Tesla in some cases, its availability is limited to a few states and doesn't have the best reputation. Given all of these factors, if you're in the market to buy a Tesla, it's a good idea to include insurance costs when calculating the total ownership cost before you buy.

According to a MarketWatch study, on average, with Tesla's in-house insurance, you'll pay $4,098 or $352 monthly to insure a 2021 Tesla model with full coverage, making it 53% more expensive than the national average. This figure will vary based on the Tesla Model you own; for example, a high-performance Tesla Model 3 will set you back $3,664 per year or $305 monthly, while a Tesla Model Y will cost you a bit less at $3,426 per year or $286. These amounts aren't etched in stone because, unlike traditional insurance, Tesla Insurance is dynamic and uses what's called a Safety Score to determine your monthly premium. Each month, the company recalculates your Safety Score based on the real-time data it gathers as you drive.

Your Safety Score is calculated based on various Safety factors that are measured by your Tesla using a combination of its sensors and autopilot software. These factors include things like how many forward collision warnings you receive per 1,000 non-autopilot miles, hard braking, aggressive turning, unsafe following, excessive speeding, late-night driving, forced autopilot disengagement, and unbuckled driving. 

Tesla Insurance isn't your only option for insuring your vehicle, and you'll likely be able to save money by shopping around. As with all car insurance, how much you'll end up paying has a lot to do with where your Tesla is insured. Everything from whether you live in an area that has a high chance of experiencing severe weather to the laws in your state play a role in how much you'll pay to insure your Tesla. 

It'll come as no surprise to most that New York tops the list of most expensive states to insure a Tesla, where you'll pay an average of about $8,155 to insure the EV. Michigan comes in not far behind New York, with an annual cost of approximately $7,284 to insure a Tesla. If you live in Louisiana, insuring a Tesla will cost you about $6,927. In Nevada, the annual cost of insuring a Tesla is $5,855, and Massachusetts rounds out the list of the most expensive states to insure a Tesla, with drivers paying about $4,535 per year to insure the EV there.

One of the biggest reasons Teslas cost a lot to insure is because they're more difficult to repair than other vehicles. You can't just drive your Tesla to the first car repair shop you see on the corner and expect them to repair it if something goes wrong. Instead, you'll need to take your car to a Tesla-authorized repair center, where mechanics trained to handle the car's technology can perform any needed repairs. Given their scarcity, especially outside of large metropolitan areas, these service centers can charge more for repairs, driving up insurance costs. 

Parts for Teslas are often hard to come by, leading to long wait times when these vehicles need to be repaired. While you're waiting for your car, the dealership will provide you with a loaner vehicle, which can also increase costs significantly, something insurance companies factor in when determining your premium. Teslas also tend to be expensive, and the more a car costs, the more you'll have to pay to insure it. Insurance companies take into account how much they'll have to pay to fix your car if it's totaled, and this is reflected in the high premiums they charge to insure Teslas. 

Another concern is that Teslas have caused accidents when the Autopilot was engaged. While it appears that no companies have openly stated they take this into account when calculating premiums, it could change in the future as companies adapt their policies to autonomous vehicles.