Tesla Insurance

The Tesla Owners Guide to Insurance

Electric cars have been around for decades, but it wasn’t until Tesla burst onto the automotive scene that Americans began to embrace electric vehicles. In 2010, the company’s Model S launched, and American drivers were enamored. If you’re a Tesla owner or thinking about becoming one, read on for a guide about Tesla insurance.

Tesla’s lineup

For 2018, Tesla offered the following vehicles:

  • Model 3: The Model 3 is a 4-door fully electric car. It starts at about $47,000 and is Tesla’s answer to the every man’s vehicle.
  • Model S: The car that put Tesla on the map. Starting at about $78,200 the Model S delivers 335 miles of driving on a charge.
  • Model X: An all-electric with cabin room for seven people.

Tesla Insurance

What does Tesla car insurance cover?

As unique as a Tesla is, the insurance you need is about the same as for any other car. Tesla owners should purchase an auto insurance policy that includes at the very least:

Liability: All drivers need liability insurance to protect them from lawsuits. Lawsuits can arise if you are responsible for injuring someone or damaging their property. The proper liability insurance will step in during such cases and pay for any damages you may be responsible for.
Liability coverage is one of the least expensive types of insurance coverage. Tesla drivers are encouraged to purchase as high liability limits as possible particularly if you have assets or high-risk drivers in your household.

Comprehensive coverage: Comprehensive insurance coverage kicks in to cover damages to your Tesla if it is involved in something other than a Collision accident. Typical uses of comprehensive coverage include damage from fire, flood or theft.

Collision Coverage: Collision coverage for a Tesla is designed to repair the vehicle if it’s in a collision accident. A collision can include impact with another vehicle or a stationary object.
Both collision and comprehensive coverages are not required by law. However, if you finance a Tesla, your lender may require you to carry such physical damage coverages. They may also require you to carry them with a certain deductible.

The cost to insure a Tesla

The average price to insure a Tesla is about $2,500 a year according to some surveys. However, that number can vary significantly based on where you live, your driving record and claims history. Your age, gender, and occupation may even be considered in the underwriting of your auto policy.
Other factors that determine the cost to insure a Tesla include the model and trim type you select and the type of insurance coverage you purchase.

Why is Tesla car insurance expensive?

Comparatively, Tesla owners may pay more to insure their vehicles. The rates insurance companies use are based on vehicle safety features as well as claim severity and cost to repair.
For example, one auto insurance company may give Tesla owners a rating discount based on the vehicle’s “AutoSteer” functionality. However, another insurance carrier may charge a higher rate due to Tesla’s high cost to repair.
Tesla's insurance costs are driven up mostly by the repair and maintenance costs. Here’s why:

  • Teslas are repaired at only specially certified repair shops. The repair technicians must undergo extensive training to get approved, so there is more cost involved.
  • Electric cars are more expensive to repair then gasoline powered vehicles.
  • Tesla’s Model S has an aluminum frame. An aluminum frame is lighter but costs more to repair than a steel framed automobile.

With high insurance costs, it’s important to get the best price to insure your Tesla. Consider using an independent agent. An independent agent has access to several top rated carriers and can put your insurance with the best company at the best rate. There are also some companies that offer special discount and rates specifically for Teslas.

Other options for coverage

If you drive any vehicle, you are required to have some form of liability insurance. But coverage for damage to your car is optional. Drivers with older vehicles that are free of liens may choose not to carry physical damage coverage on their cars. They are self-insuring the car. In this case, if the vehicle is damaged in an accident or another event, the insurance policy doesn’t help with the cost to repair or replace the vehicle.

For some drivers, it makes sense. Physical damage coverage is particularly expensive for Tesla owners. Still, consumers who are not prepared to pay out of pocket to repair or replace the Tesla if something goes wrong should be careful when considering this option.

Reach out to Balsiger Insurance for coverage today. We have office locations for car insurance in Reno, Las Vegas, Corpus Christi, and Pasadena, but we service most states in the USA.

Tesla owners should consider an independent insurance agent

Tesla owners should consider using an independent insurance agent like Balsiger Insurance when looking for coverage. Our independent agents offer insurance quotes from many different carriers. We can also provide unbiased expertise and help you select the right insurance policy for your Tesla.

Contact Balsiger Insurance at 1-866-872-0156 to get a quote today!