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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
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Becky Helzer is an insurance and personal finance editor who has worked with Compare.com since 2025. A seasoned editor, Becky has experience working with content across several industries, including P&C insurance, home finance, technology, and home improvement. She has a passion for breaking down complex topics into clear, easy-to-understand copy.
Becky earned a bachelor’s degree in technical journalism from Colorado State University.
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While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
The Tesla Model 3 is one of the more affordable electric vehicles (EVs) on the market. But insuring it costs an average of $255 per month — almost 68% higher than the national average, according to Compare.com data.
And full-coverage policies run significantly higher, at an average of $330 per month, while liability-only coverage averages $179. Despite a high safety score — the National Highway Traffic Safety Administration (NHTSA) gives it five out of five stars[1] — the Model 3’s complexity, high repair costs, and specialized parts contribute to higher insurance costs. Though some insurers offer discounts for electric vehicles, rates among insurers vary widely.
Keep in mind that the cheapest car insurance company isn’t always the best fit, so comparing multiple quotes is essential. Below, we explore the best insurance companies for the Model 3, how different factors influence rates, and ways to save.
HiRoad offers the lowest average Model 3 premium, at $106 per month.
The Tesla Model 3’s advanced features contribute to high repair expenses, which can increase premiums.
Your age, driving history, and location affect your insurance rate. Younger drivers and those with traffic infractions also pay more for insurance.
The type of insurance policy and level of coverage you choose significantly affect your car insurance rates. Liability-only policies with state-minimum coverage are typically the cheapest. These policies include bodily injury, property damage, and uninsured motorist coverage in states that require it.
Full-coverage policies, on the other hand, include collision and comprehensive coverage, which provide protection for your vehicle as well. Lenders usually require you to have full coverage on a car you finance.
The table below shows the average monthly premiums for the Tesla Model 3 for various types of coverage and how each compares to the national average for all vehicles.
Vehicle  | Average Monthly Premium: Liability | Average Monthly Premium: Full Coverage | Average Monthly Premium: All Policies |
|---|---|---|---|
| Tesla Model 3 | $179 | $330 | $255 |
| All vehicles | $107 | $197 | $152 |
Model 3 liability-only policies cost an average of $179 per month, while full-coverage policies cost an average of $330 — both significantly more than the average monthly premium for all vehicles, according to Compare.com data.
But broad averages tell an incomplete story. Other factors play a role in the cost of your insurance.
Even though the average cost of car insurance for the Tesla Model 3 is $255 per month, you always have ways to save money. You can start by reviewing the cheapest companies for your car’s make and model.
With that in mind, the table below shows the companies offering the cheapest average rates for the Model 3, according to our data.
HiRoad offers the cheapest monthly premiums, at just $106. But just because a company has the cheapest average premiums doesn’t guarantee it’ll be your cheapest option. The best way to uncover your cheapest rate is to gather and compare quotes from several car insurance companies.
Compare quotes from America’s cheapest insurers.
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Choosing the best car insurance company for your Tesla Model 3 depends on your unique needs, driving habits, and budget. After all, there’s no single “best” company for everyone.
The following companies stand out based on a combination of factors, including average insurance rates for the Model 3, available discounts, customer ratings and reviews, and the variety of coverage options offers.
Keep in mind that comparing quotes from multiple insurers is the best way to find the right balance between cost, coverage, and customer service.
Compare.com Rating: 4.90 out of 5
Large network of local agents
Strong claims satisfaction
Usage-based discounts available
Financial stability recently downgraded
No available EV-specific discount
Not available in Massachusetts or Rhode Island
State Farm typically offers low rates from a large network of local offices and also has a national customer service line. Though the company doesn’t have an EV discount, it provides a wide array of savings opportunities, including good student and safe driver discounts, its Drive Safe & Save telematics program, and more. State Farm also earns strong marks for customer service and claims satisfaction.
But the company doesn’t offer many special coverage options, like gap insurance or vanishing deductibles. It’s also worth noting that AM Best downgraded State Farm’s financial strength in March 2024 because of the company’s worsening financial situation.
Compare.com Rating: 4.91 out of 5
Military-focused benefits
Strong financial stability
Discounts for safe driving
Restricted eligibility requirements
Diminishing deductibles not available
Fewer coverage options than some competitors
USAA specializes in policies for military members and their families. It specifically tailors policy options and discounts to military lifestyles, including discounts for garaging your vehicle while you’re deployed. You can also save up to 30% with SafePilot, a usage-based insurance (UBI) program that tracks driving behavior and rewards safe driving. Low-mileage drivers can also enroll in a pay-as-you-drive program to save even more.
The company earns one of the best ratings for customer service and claims satisfaction from J.D. Power. But it’s available only to veterans, active-duty service members, and their immediate family members.
Compare.com Rating: 4.90 out of 5
Many discount opportunities available
Multi-policy discounts available
Two usage-based programs
Higher-than-average rates for high-risk drivers
No EV discount
Few local agents in some areas
Nationwide provides a wide range of vehicle coverage options. It also offers accident forgiveness, vanishing deductibles, gap insurance, and more. The company earns high marks for its claims handling and customer satisfaction, as well.
But Nationwide’s rates aren’t usually the cheapest available, according to Compare.com data. Its premiums are also higher than average for drivers with driving infractions, and some customers report issues with online quoting accuracy.
Comparing quotes saves users an average of $867 per year.†
Your vehicle’s age indirectly affects your car insurance premiums, partly because a brand-new car is typically worth more than an older vehicle. Since your insurer is on the hook to pay out the value of your car if it’s totaled (minus your deductible), the higher the potential payout, the more your insurance will cost.
The table below shows how Model 3 premiums change based on the vehicle’s age, using data from Compare.com.
Model 3 Model Year | Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| 2025 | $264 | Mile Auto | $159 |
| 2024 | $268 | Safeco | $169 |
| 2023 | $258 | HiRoad | $93 |
| 2022 | $246 | Safeco | $157 |
| 2021 | $253 | Safeco | $166 |
| 2020 | $266 | Mile Auto | $158 |
| 2019 | $239 | Mile Auto | $108 |
| 2018 | $245 | Mile Auto | $117 |
| 2017 | $228 | Mile Auto | $115 |
Next, let’s look at how your location — specifically your state — can affect your insurance rates.
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Where you live significantly affects your car insurance rates. Each state has different claim frequencies, crime rates, repair costs, and weather patterns — all of which play a role in how much you pay.[2]
For example, densely populated areas, like New Jersey and Rhode Island, tend to have higher rates than Vermont, which has fewer residents. Rates in New York City are also much higher than in rural areas of New York.
The table below shows the average rates for Model 3 car insurance by state, according to Compare.com data.
State | Average Monthly Premium |
|---|---|
| Alabama | $168 |
| Arizona | $225 |
| Arkansas | $322 |
| California | $324 |
| Colorado | $263 |
| Connecticut | $512 |
| Delaware | $312 |
| Florida | $329 |
| Georgia | $334 |
| Idaho | $169 |
| Illinois | $210 |
| Indiana | $181 |
| Iowa | $153 |
| Kansas | $206 |
| Kentucky | $329 |
| Louisiana | $304 |
| Maine | $200 |
| Maryland | $463 |
| Massachusetts | $253 |
| Michigan | $394 |
| Minnesota | $253 |
| Mississippi | $253 |
| Missouri | $247 |
| Montana | $205 |
| Nebraska | $237 |
| Nevada | $401 |
| New Hampshire | $154 |
| New Jersey | $267 |
| New Mexico | $195 |
| New York | $648 |
| North Carolina | $126 |
| North Dakota | $195 |
| Ohio | $171 |
| Oklahoma | $218 |
| Oregon | $216 |
| Pennsylvania | $220 |
| Rhode Island | $193 |
| South Carolina | $369 |
| South Dakota | $163 |
| Tennessee | $190 |
| Texas | $299 |
| Utah | $245 |
| Vermont | $183 |
| Virginia | $243 |
| Washington | $188 |
| Washington, D.C. | $382 |
| West Virginia | $195 |
| Wisconsin | $171 |
| Wyoming | $163 |
| Alabama | $168 |
| Arizona | $225 |
Your location is just one of many factors that affect the cost of car insurance. The following section shows how your age affects rates for your Model 3.
Your age is another major factor insurance companies use to set rates because drivers in different age groups have different likelihoods of filing a claim. For example, research from the National Safety Council shows that young drivers have a high incidence of car accidents.[3]
Older drivers, on the other hand, have a much lower incidence of car accidents, which usually leads to lower car insurance rates. But rates tend to increase when you reach age 70 due to age-related changes in vision and response time.[4]
The table below shows the cost of auto insurance for Tesla Model 3 drivers based on age, according to data from Compare.com.
Age Group | Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| Teens | $480 | HiRoad | $199 |
| 20s | $329 | HiRoad | $136 |
| 30s | $255 | HiRoad | $106 |
| 40s | $233 | HiRoad | $97 |
| 50s | $210 | HiRoad | $87 |
| 60s | $196 | HiRoad | $81 |
| 70s | $211 | HiRoad | $88 |
Teen drivers pay the highest overall rate, but premiums decline significantly in your 20s. Rates continue to decrease with age until you reach 70.
We found that HiRoad provides the lowest average rates to drivers across all age groups.
Next, let’s review how your driving record affects your car insurance costs.
Your driving record is another major factor that affects your insurance premiums. If you have a clean record, you’ll likely pay lower rates and may have access to additional savings through safe driver discounts.
But if you have an infraction on your record, your premiums will be higher — insurers link a history of unsafe driving behavior with a higher chance of future claims. For example, the National Safety Council’s research has shown a connection between speeding and traffic accidents.[5]
The table below shows how your driving record alters monthly car insurance rates and the insurance company offering the lowest premiums to drivers in each group, according to Compare.com data.
Driving Record | Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| Clean record | $255 | HiRoad | $106 |
| Speeding ticket | $354 | HiRoad | $147 |
| At-fault accident | $369 | HiRoad | $153 |
| DUI | $419 | HiRoad | $174 |
As expected, Model 3 drivers with clean records pay the lowest rates overall. But prices increase with the perceived risk associated with each driving infraction. For example, drivers with a driving under the influence (DUI) conviction pay the highest rates.
But your age and driving record aren’t the only factors at play. Your vehicle’s features and options also affect your insurance costs.
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The Tesla Model 3 has advanced technology and safety features that directly or indirectly influence insurance premiums in multiple ways. Specialized components and features contributing to the vehicle’s high safety score are expensive to repair, driving insurance rates up regardless of your age and driving record.
Here are a few key features that affect Model 3 insurance costs:
Autopilot and full self-driving capability: While these driver-assistance technologies can potentially reduce accident risk, some evidence points to potential safety issues. Plus, the high cost of repairing these systems can increase premiums.
Battery system: The Model 3’s electric battery is expensive to repair and replace, which raises insurance costs.
Advanced safety features: Standard features like automatic emergency braking, collision avoidance, and lane-keeping assist can lower the risk of accidents and reduce insurance rates. But higher repair costs may cancel out these savings.
Glass roof: The optional all-glass roof on the Model 3 can make repairs more expensive, which may lead to higher premiums.[6]
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While the Tesla Model 3 is significantly more expensive to insure than the average car, you can lower your insurance costs in several ways, including:
Avoid small claims. Filing minor claims can raise your rates.[7] Pay for small repairs out of pocket when possible to keep premiums low.
Increase your deductible. Choosing a higher deductible can lower your monthly premium, but be sure you can afford the extra out-of-pocket cost if you need to file a claim.
Take advantage of EV discounts. Some insurers offer discounts specifically for electric vehicles, so check with your insurer to see if it offers incentives.
Improve your credit. Many states allow insurers to use your credit history to determine rates, so maintaining good credit can help you qualify for lower premiums.
Compare quotes regularly. Insurance rates vary significantly by company and may change over time. Shop around at least every six months, and consider switching companies if you find a better rate.
Compare personalized quotes from America’s top insurers.
Car insurance rates for the Tesla Model 3 vary based on various factors, including where you live, your age, and your driving record. Below, we answer common questions about Tesla Model 3 insurance.
Yes. The Tesla Model 3 is usually more expensive to insure than the average vehicle, according to our data. Expensive parts, specialized repairs, and advanced technology contribute to higher premiums. But Model 3 premiums may be similar to other Tesla models, including the Model Y.
The average monthly premium for a Tesla Model 3 is $255, according to Compare.com data. Liability coverage costs around $179, while full coverage averages $330. These rates are significantly higher than the $152 average monthly rate for all vehicles.
We found that HiRoad offers the lowest average monthly premium for Tesla Model 3 insurance, at $106. Mile Auto and Safeco also typically offer cheaper-than-average rates. But shopping around and comparing quotes is the best way to find the lowest rate for your Model 3.
No, insurance for Teslas is generally more expensive than for other vehicles. The Tesla Model 3, for example, has an average monthly premium of $255 — almost 68% higher than the national average.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
Becky Helzer is an insurance and personal finance editor who has worked with Compare.com since 2025. A seasoned editor, Becky has experience working with content across several industries, including P&C insurance, home finance, technology, and home improvement. She has a passion for breaking down complex topics into clear, easy-to-understand copy.
Becky earned a bachelor’s degree in technical journalism from Colorado State University.
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