Tesla Model 3 car insurance at a glance:

  • Average auto insurance premium for a 30-year-old driver: $2,547
  • Most affordable insurance companies for Tesla Model 3 insurance: USAA, Nationwide and Travelers
  • Cheapest state for Model 3 insurance: Maine
  • Most expensive state for Model 3 insurance: Louisiana

The Forbes Wheels team says the Tesla Model 3’s performance, range and unmatched fast-charging network make it the best value in electric vehicles (EV). If you’re thinking of switching over to an EV, insurance costs should be part of your budget calculation. Here we look at average car insurance costs for a Tesla Model 3.

 

Tesla Model 3 Insurance Costs by Company

Tesla Model 3 owners can possibly save hundreds of dollars a year by comparing car insurance quotes from several different insurers. Among the large insurance companies we looked at, USAA offers the cheapest car insurance for a Tesla Model 3. If you are not eligible for USAA car insurance (you need to have a military affiliation), Nationwide and Travelers are the next cheapest choices in our analysis.

Company Average annual premium
$1,524
$1,575
$1,957
$2,096
$2,174
$2,233
$2,742
$2,837
State Auto
$2,887
$3,139
$3,167
$3,398
Shelter
$4,087
*USAA is available only to military members, veterans and their families

Tesla owners can also buy auto insurance directly from Tesla Insurance.

Tesla Model 3 Insurance Costs by State

State variations in Tesla Model 3 insurance costs are due to state regulations, past claims in the state, medical costs, repair costs and more. Louisiana is the most expensive state for Tesla Model 3 auto insurance.

State Average Tesla Model 3 insurance cost % difference from average
$2,197
-14%
$2,459
-3%
$2,877
13%
$2,188
-14%
$3,662
44%
$3,172
25%
$2,443
-4%
$2,879
13%
$3,626
42%
$2,318
-9%
$1,810
-29%
$2,238
-12%
$1,581
-38%
$2,336
-8%
$2,145
-16%
$2,539
0%
$3,072
21%
$4,364
71%
$2,725
7%
$2,949
16%
$1,643
-35%
$3,603
41%
$2,079
-18%
$3,095
35%
$3,006
18%
$2,886
13%
$1,985
-22%
$2,305
-9%
$3,278
-9%
$1,915
29%
$2,815
11%
$2,176
-15%
$2,673
5%
$2,474
-3%
$1,847
-27%
$2,745
8%
$2,052
-19%
$2,737
7%
$2,917
15%
$2,030
-20%
$2,563
1%
$2,282
-10%
$2,698
6%
$2,237
-12%
$2,400
-6%
$1,629
-36%
$2,083
-18%
$2,137
-16%
$2,493
-2%
$2,966
16%
Average for all states
$2,547

Cost of Insurance for a Tesla Model 3 Based on Driver Age

The cheapest driver age for insuring a Tesla Model 3 is age 60, according to Forbes Advisor’s analysis of rates.

Between the age of 30 to 40, women and men pay roughly the same for Model 3 insurance. For example, 40-year-old women drivers pay an average of only $9 less per year than 40-year-old men.

The most expensive driver age to insure a Model 3 is age 20 and under. Gender is also a price factor for this age group. For example, 20-year-old women drivers pay an average of $764 per year less than 20-year-old men.

Driver age Average cost of Tesla Model 3 insurance per year
Age 20
$5,080
Age 30
$2,547
Age 40
$2,374
Age 50
$2,211
Age 60
$2,107
Age 70
$2,300
Age 80
$2,854

Insurers look at many factors when determining your car insurance rate. That includes your driving record, the type of car, where you live, personal versus business use of the car, annual mileage, your past claims, a credit-based insurance score (poor credit risks pay more), any recent lapse in auto insurance coverage and the type and amount of insurance coverage chosen.

Related: 9 Factors That Affect Your Car Insurance Rates

Tesla Model 3 vs. Similar Cars

If you’re considering a Tesla Model 3, you might also be looking at similar cars such as a Jaguar I-Pace, Mercedes-Benz C-Class and Volvo Polestar 2. Among these models, the Model 3 is the second cheapest to insure, on average. Insurance shouldn’t be a major factor in your car-buying decision among these vehicles.

Company Average annual premium
$1,524
$1,575
$1,957
$2,096
$2,174
$2,233
$2,742
$2,837
State Auto
$2,887
$3,139
$3,167
$3,398
Shelter
$4,087
*USAA is available only to military members, veterans and their families

Related: Most and Least Expensive Green Cars To Insure

How to Save Money on Tesla Model 3 Car Insurance

There are plenty of ways you can lower your car insurance costs. Here are a few:

  • Compare quotes. Not all insurers price Model 3 insurance the same, which is why you should compare car insurance quotes from at least three different insurance companies.
  • Ask for discounts. There are more than a dozen common car insurance discounts that you may qualify for.
  • Participate in a telematics program. If you’re a safe driver, you might benefit from your insurer’s usage-based car insurance program, which tracks and rewards safe driving behaviors.
  • Buy the right amount of car insurance. You want to make sure you have adequate insurance but not overpay for too much insurance. Here’s a guide to help determine how much car insurance you need.
  • Maintain good credit. Insurers in every state except California, Hawaii, Massachusetts and Michigan can use your credit-based insurance score as a cost factor. But not all companies weigh this cost factor the same, which is why it’s so important to shop around.
  • Consider raising your deductible. Generally, the higher your car insurance deductible, the less you will pay in premium. Common deductible amounts can range from $100 to $1,000 (or higher).

Related: Tesla Model 3 review

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Methodology

Rates are based on drivers with a clean record with $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, uninsured motorist coverage and any other coverage required in a state. The rate also includes collision and comprehensive coverage with a $500 deductible. Rates are from Quadrant Information Services as of June 2022.

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