10 Of The Cheapest Tesla Insurance Companies (And What To Know Before You Buy)

Teslas are cool cars to own, but if you're considering putting one in your garage, you should brace yourself for the high insurance costs that come with owning a luxury car. Certain factors usually determine how much you pay for insurance. For instance, your car model, location, and driving history can all influence the deals you can get. But for Teslas, the features that make them so cool can be quite pricey to repair if things go south, which is pretty much why you pay so much more to have it insured. In fact, insuring a Tesla car costs 59% more than the national average. 

Regardless of this, getting insurance for your Tesla doesn't always have to eat into your wallet. There are loads of insurance providers that offer affordable options tailored for Tesla owners. And Tesla even provides its own insurance services now, so drivers now have a bunch of options to consider for their car insurance. With that said, here are 10 of the cheapest Tesla insurance companies and what you need to know before purchasing a policy. But before diving in, we want to let you know that this list is not ranked by price.

State Farm often ranks among the cheapest insurers for Tesla owners with many driver discount programs. This company offers Tesla drivers the peace and security that come with great coverage at a lower price than the market average. Its electric vehicle insurance policies also cover charging equipment and battery replacement.

State Farm's excellent customer satisfaction rating comes as no surprise with the discounts it offers for safe driving through its popular "Drive Safe & Save" program. The company also provides bundling policies to help customers save even more. So, drivers who bundle home and auto insurance can get even more discounts.

Just keep in mind that this insurer tends to have higher rates for drivers with poor credit compared to the national average. Also, its "Drive Safe & Save" program isn't available everywhere. It's currently off the table in California, Massachusetts, and Rhode Island and some restrictions may apply in North Carolina. So, if you're in one of these states, it's worth checking to see exactly what's available to you.

One of the upsides of Nationwide is the impressive value for money. Like every major car insurance company, it provides full coverage policies for electric vehicles, including special coverage for Tesla's advanced safety features and expensive parts. Young drivers between the ages of 16 and 24 may also get student discounts depending on their grade average.

Unlike others, this provider still offers affordable rates for car owners with bad credit. It also provides competitive rates for drivers after an accident or a speeding ticket. Tesla drivers can even save up to $500 on their deductibles through the Vanishing Deductible add-on — one of the hidden Easter eggs all Tesla drivers should know. The company's "SmartRide" program offers the potential for up to 40% off premiums at each policy renewal as a reward for safe driving habits.

Apart from its prices sometimes being on the high side, one issue you may face is with coverage in your area. Unlike the name suggests, its insurance coverage isn't exactly "nationwide," as drivers in Alaska, Hawaii, Louisiana, Massachusetts, and Oklahoma are not currently eligible for coverage.

One of the biggest insurance companies, Progressive is another great choice for Tesla drivers on a tight budget. This insurance provider offers competitive rates through its Snapshot program. Snapshot is a usage-based insurance program that rewards safe and low-mileage drivers with discounts of up to 30% on premiums. Progressive may also even reward Tesla owners for the car's safety features like automatic emergency braking and collision warning. However, while it rewards drivers for safe driving, it may also raise your rates if Snapshot tracks bad or risky driving habits.

The company makes it easier for drivers to monitor and modify their coverage directly from the Progressive app. Tesla owners can also use the "Name Your Price" tool to get the best coverage options for their budget. Even though Progressive is available in all states, coverage options may differ based on where exactly you are, so always make sure to find out what's on offer in your area.

Travelers ranks as one of the most affordable insurance providers for Tesla drivers. It boasts rates lower than the national average, particularly low premiums for the Model S and Model X and offers several coverage options including excellent protection for EVs. To top that off, it gives Tesla owners a solid discount for premiums on electric vehicles.

With Travelers' flexible plans, Tesla owners can customize coverage based on their needs. These customizable policies include standard protection and even extend to some additional options, such as gap insurance. Additionally, the company provides rideshare insurance as an optional add-on, which is great if you're a Tesla driver working for companies like Lyft or Uber. This insurance package covers you from the moment you're available to accept a ride until the moment you actually do. However, it's currently not available in every state. Its "IntelliDrive" program can also reward safe drivers with discounts of up to 30%.

The United States Automobile Association (USAA) is a financial institution with insurance packages tailored specifically for Tesla owners who are part of the U.S. military. With a strong customer satisfaction rate and competitive prices, USAA is a popular choice among military-affiliated Tesla owners looking for dependable coverage at a low cost. To qualify, drivers must be military members in active service or veterans. One great part about opting for USAA is that your immediate family, such as spouses or children, also qualify for this insurance coverage.

USAA is available in all states, and military members stationed outside the U.S. can also access insurance coverage overseas, though coverage may be limited. Customers may also have to pay a higher premium for foreign services. Its "SafePilot" usage-based program offers the potential for up to 30% in insurance savings, but you're out of luck if you're based in California, Delaware, or New Jersey, as the program isn't available in these states. 

While USAA is one of the cheapest Tesla insurance providers on this list, these low prices are exclusive to the military and their immediate families. Drivers without a military affiliation have to look to other providers. Also, USAA does not have 24/7 customer service and may not be available on Sundays.

GEICO provides budget-friendly options across the board, and this includes coverage for Tesla models. With its easy-to-use app and fast quote process, GEICO has simplified the insurance shopping experience. Tesla drivers can even access additional savings through its multi-policy discounts and it also boasts 24/7 customer service.

Particularly, GEICO provides special savings plans for active or retired federal government employees. Also, Tesla owners who are members of certain military and federal-related organizations may also be eligible for a discount. Even drivers who are involved in an at-fault accident can get affordable rates from GEICO. However, Tesla drivers who have a "driving under the influence" charge will have to pay higher rates. These discounted rates, combined with an intuitive app, make the company a good option to consider.

You should bear in mind, though, that GEICO also has limited specialized coverage for electric vehicles. So, while it does offer affordable rates, it may not provide full coverage in all locations. It may also not be the best choice if you need gap insurance, as that isn't currently offered.

American Family, or AmFam, provides policies that offer generous discounts for safe driving and multi-policy bundles. These features are exactly what makes AmFam a go-to for families with multiple Tesla vehicles. The company's add-on policies cover rideshare insurance, gap insurance, and original equipment manufacturer coverage.

AmFam has two telematics programs that track driving habits. DriveMyWay monitors habits like speeding and hard braking. KnowYourDrive can detect distracted driving, such as picking up your phone when the screen is unlocked and making a call while holding your phone. Tesla drivers who subscribe to these programs typically get discounts for good and safe driving habits.

American Family isn't available in all states though. The company offers its car insurance services in only 19 states, including Nevada — one of the most expensive states to insure a Tesla. So, if you live in one of these areas, you'll have access to its plans and competitive pricing. But if not, you'll need to consider other providers.

Tesla Insurance is a unique option available directly from Tesla in certain states. Unlike other companies, Tesla leverages the vehicle's built-in data to provide real-time premiums based on driving behavior. This telematics-based approach allows for more dynamic pricing and rewards safe driving with lower rates. Tesla drivers also have access to roadside assistance, but it's important to know what Tesla roadside assistance actually covers to ensure it meets your needs.

The company offers several coverage options, which may vary by location. For instance, in California, Tesla owners can even insure their non-Tesla cars. Although, this feature isn't available in the other 11 states where Tesla insurance is available. Still, those states have access to the real-time driving feature, which gives drivers some control over their premiums based on how they drive.

The downside is that Tesla insurance is only available in 12 states, so not all Tesla owners can get insurance directly from their car manufacturer. Also, the company only has car insurance policy options, which means drivers can't get the usual bundling discounts provided by other competitors. Another drawback with Tesla insurance is that most customer-provider communication happens via the Tesla app, which could sometimes take a while to get a response.

Allstate is a well-established name in the insurance industry that offers reliable coverage options for Tesla owners at competitive rates. While it can get pricier than its competitors, the company stands out for its comprehensive coverage options and generous discounts for bundling home and auto policies. Plus, its rates are only more expensive for certain drivers, like teenagers and drivers who were recently in at-fault accidents. If a seamless claims experience and strong customer support are non-negotiables, you may find it worth the investment, with its 24/7 support lines and extensive agent network.

Going with Allstate gives you access to plenty of insurance options such as accident forgiveness and roadside assistance. As with most Tesla car insurance providers, it also offers usage-based pricing programs. "Milewise" gives discounts to low-mileage drivers using a pay-per-mile plan. While with "Drivewise", you can get up to a 40% discount on premiums when you drive safely often.

Allstate does offer competitive rates, but depending on your location, it may not always be the most affordable option. Still, it's definitely worth considering if you're looking for strong coverage with solid service. You should know that some add-ons may not be available in all states. For instance, the company offers its rideshare insurance in only eight states. So make sure to check if your preferred coverage option or add-on is available in your area.

Farmers offers a variety of coverage options for Tesla owners. It also offers over 20 discounts, with a special savings plan for EVs. Apart from standard coverage, drivers can add options such as accident forgiveness, car replacement, and glass coverage. You could even get some of your customized vehicle add-ons covered, like wheels or a stereo.

One pretty handy offering is the ability to modify plans in different ways to find the option that works best for your budget. Also, the Farmers mobile app allows Tesla owners to manage policies and begin a claims process straight from their phones. This functionality, coupled with the several coverage options, creates an incredibly flexible experience. However, some customers have mentioned that roadside assistance can be a bit slow at times.

Of course, coverage options and prices will vary depending on your location, so it's a good idea to reach out to an agent. They can help you see exactly what's available in your area and make sure you're getting the best deal. Plus, you could even discover discounts or extras that might not be obvious online.

One reason Tesla insurance is so expensive is that repairs for electric vehicles are often more costly than those for traditional cars. To cover yourself, check that your policy includes parts and specialized labor for Teslas. You'll also want coverage for Tesla's self-driving features if you plan to use them. Take a bit of time to shop around and compare quotes to find a company that has the best deal for you.

Yes, EVs can be a little more expensive to insure, but there's good news. Some insurers offer special discounts just for electric vehicles like Teslas. Ask your provider if they have a discounted plan that fits your needs. These plans often extend to cover additional safety features or specialized repairs, which can be a real plus. For more savings, you can also look into usage-based pricing policies. These policies give you discounts for safe driving. Or, if you're not racking up miles, some companies offer pay-per-mile plans. It's worth asking about these options as they can make a notable difference in your premium.

Now, as you explore different policies, think about what level of coverage is right for you. You might just need the minimum insurance required by your state, or maybe you prefer a more robust plan, with add-ons like gap insurance. Either way, weigh what each company offers, and go for one that suits both your budget and your car.

Lastly, don't skip customer reviews, as these can really help you spot red flags and get a feel for the service each company provides. If a company has loads of complaints or poor ratings, that might be a sign to look elsewhere, even if its prices seem like a steal.