Tesla Model 3 Car Insurance: How Much Should You Expect to Pay?

Quick Facts

• A Tesla Model 3 is more expensive to insure compared to the average car.
• Liability auto insurance for a Model 3 comes in at about $80 monthly, while full coverage usually runs around $234 a month.
• The lowest car insurance company for a Model 3 is AmericanAlliance.

Model 3 Overview

With new 2022 models coming in with a base MSRP of $44,990, the Tesla Model 3 is a great mid-level option for any driver.

We ran through thousands of auto insurance quotes on Compare.com, and we've determined that average Tesla Model 3 insurance prices run about $199 monthly. But how does that fare against its competitors?

How Much is Car Insurance for a Tesla Model 3?

In the table above, you'll see that Tesla Model 3 insurance premiums are higher than average compared to other vehicles. On average, Model 3 owners will pay around $80 per month for liability insurance, and about $234 a month for full coverage, which has comprehensive and collision coverages in addition to liability (discover more about these different types of insurance with our guide "State Minimum vs. Full Coverage").

Compared to other models, the Model 3 is on par with Tesla's vehicle offerings. Compared to offerings from other brands, auto insurance for a Model 3 runs close to average, with full coverage insurance prices coming in at $57 higher than other cars and liability insurance rates at $3 cheaper.

When compared to all vehicles of any body type, liability only premiums are slightly more affordable for a Model 3, but run higher than average for full coverage policies.

Who has the Cheapest Car Insurance for a Tesla Model 3?

If you're browsing for a new auto insurance policy for your Tesla Model 3, you're likely wondering which carrier offers the most affordable premiums. Even though costs will normally be pretty different from policyholder to policyholder, American Family has the cheapest average rates for liability only coverage, with rates as cheap as $35 monthly. The next most affordable company is CaliforniaCasualty, who offers car insurance sometimes as cheap as $40 a month.

StateAuto, MetroMile, and Freedom round out the rest of the top 5 list. However, just because these five carriers offer the lowest average rates doesn't necessarily mean they'll be the cheapest for you.

After all, insurance companies look at a range of different variables when calculating rates, so your results might be different. The only way to guarantee you'll find the cheapest rates is to compare quotes from several car insurance carriers.

What Factors Affect Car Insurance Rates for a Tesla Model 3?

As we mentioned above, there are a whole range of factors that insurance companies take into account to calculate how much they charge for a policy -- and each carrier weighs certain attributes more than others, so there's not just one company that's the most affordable for every driver.

Here are just a few of the things car insurers will look at, with individual breakdowns of how each one affects your rates:

Vehicle Age

The Tesla Model 3 has been around for a few years, so vehicle age will likely make a difference in what you end up paying for auto insurance. Typically, older cars will be cheaper to insure because they're worth less than newer models, and as time goes on and Model 3s begin to depreciate, insurance costs will gradually get lower.

As you can see in the information above, the Tesla Model 3 follows this trend, as the cheapest models to insure are those that are 4 to 5 years old, while the most expensive models are Model 3s that are 1 year old or less, on average.

Your Age

Your age is another factor that plays a significant role in how much you pay for insurance. Based on the information in the table above, drivers who are under 24 have higher rates compared to drivers who have more experience. In this case, drivers between 18 and 24 pay $29 more than those 25 or older.

Auto insurance prices continue to go down as you get older, with drivers aged 65 years and older making up the cheapest age group for the Model 3.

Your Gender

You may not know, but car insurance is generally cheaper for women than it is for men. This is because men are more likely to get into collisions and get tickets, which raises the chances of an insurance claim. Surprisingly, for Model 3 drivers, this trend does not hold, and women pay more for their auto insurance than men.

Where You Live

It may be obvious that factors like what vehicle you drive and how old you are play a role in your insurance prices, but you may not realize that where you live can be equally important. Insurance is regulated on a state-by-state basis, so rates differ quite a bit from state to state.

For example, the average Tesla Model 3 driver in New York pays around $170 per month for liability coverage. Meanwhile, the same Californian owner will pay less than half of that price, on average. The table above shows average premiums for the top 10 most populous states, just to give you a good idea of how much prices can change from state to state.

Tesla Model 3 Car Insurance Discounts

Regardless of your car, your home state, or your age, it's always in your best interest to take advantage of as many auto insurance discounts as possible.

While no two car insurance carriers offer the same exact discounts, there are a few that you'll find with most insurers. These include things like:

• Vehicle safety discounts for having a vehicle with certain safety features (like anti-lock brakes or air bags) or one with higher than average safety ratings
• Defensive driving discounts for drivers who take a defensive driving class through an accredited school or institution
• Multi-policy discounts for getting both your home and auto policies from the same carrier
• Pay-in-full discounts for agreeing to pay your entire policy premium up front, rather than in monthly installments

While these are just a few of the discounts auto insurance companies offer, there are countless other ways to save money on you monthly insurance bill. Often, it's actually having a profile that shows positive driving habits to insurance carriers that get you the best rates.

Although you don't have control over every variable car insurance companies consider to calculate premiums (like some of the ones mentioned above), you can influence some of them. Below are just a few of the ones you can use in your favor when it comes to saving cash:

Your Driving Record

You've almost certainly heard ads from insurance carriers offering big discounts for responsible drivers. It checks out that your auto insurance prices will get higher if you get into a collision or get a speeding ticket. But you're probably wondering exactly how much these infractions can cost you.

You can see from the table above that accidents will usually cost Model 3 drivers less than tickets, but both will result in higher than normal rates. Tesla Model 3 drivers with a single accident on their record pay about $104 a month (up $24 from the $80/mo. overall average), while drivers with one ticket will pay an average of $120 a month. Those with more than one of either violation will end up paying even more.

How Much You Drive

The total amount of miles you drive impacts your insurance rates. Those who are on the roads less often are more likely to go accident-free, so they'll typically end up spending less on car insurance. Based on the table above, you can see that Tesla Model 3 owners who drive fewer than 2,500 miles each year pay about $90 per month for insurance, while those who put 10,000 miles or more on their cars pay $93.

But if you don't use your Tesla Model 3 that often, it may be worth learning about usage-based or pay-per-mile car insurance. With these plans, you pay a small monthly amount, and your final monthly bill is calculated based on how many miles you drove.

How Do Tesla Model 3s Compare to Other Vehicles?

If you're thinking about purchasing a new vehicle and a Tesla Model 3 is on your shortlist, it can pay off to do your due diligence. Car insurance is just one cost that's associated with a new car purchase, but it's definitely one that's worth considering carefully.

Visit the table below to see how the Tesla Model 3 compares:

Overall, the Tesla Model 3 has an MSRP that's on par with the going rate for a new vehicle. The Model 3 starts at $44,990, similar to the national average vehicle MSRP of $46,192.

Liability insurance for a Tesla Model 3 is about $31 per month less than average, while full coverage is over $40 more monthly.

When it comes to usage, Tesla Model 3 owners drive fewer miles annually than the national average, with 11,617 miles for all vehicles every year compared to the Model 3's 9,523 per year.

Tesla Model 3 Car Insurance Costs by Model Year

We've walked through many of the things that can have an impact on what you'll pay for auto insurance. If you're considering buying a new Model 3, having a good idea of exactly how much you'll pay can be extremely helpful as you weigh your choices and compare it to other vehicles on your shortlist.

2022 Tesla Model 3 Car Insurance

When it comes to insuring a Model 3, on average, it costs around $50 a month to insure a 2022 Tesla Model 3 for liability only and $216 monthly for full coverage. And if you want the most affordable insurance possible, Clearcover offers liability only policies for as little as just $43 per month.

While it helps to know the average price drivers pay to insure a 2022 Model 3, you'll only find out exactly what you'll pay if you get a personalized quote. With Compare.com, you can gather multiple quotes at once, all for free. Simply enter your ZIP code below to get started.

2021 Tesla Model 3 Car Insurance

If you're looking to buy a 2021 Model 3 or already own one, you can expect an average auto insurance price of about $90 for liability or $272 for full coverage.

And if you're just looking for the cheapest insurance for your Model 3, Hugo offers liability only policies for as little as $18 monthly.

If you want to know just how much your rate will be, get free quotes in minutes by just entering your ZIP code below.

2020 Tesla Model 3 Car Insurance

You can expect full coverage for a 2020 Tesla Model 3 to run around $238 per month, while liability only coverage will average about $79 a month.

If you're looking for the most affordable 2020 Tesla Model 3 insurance policy, Hugo offered the lowest policy we found, with rates sometimes as little as $17 per month.

What could your car insurance premium look like? Enter your ZIP code below to get several free personalized quotes.

2019 Tesla Model 3 Car Insurance

It costs around $79 a month for liability or $227 for a full coverage policy for the 2019 Model 3.

With premiums as cheap as just $17 monthly, Hugo offered the most affordable policy we found for the 2019 Tesla Model 3.

If you want more accurate quotes of how much you can expect to pay, just enter your ZIP code below and get free quotes in minutes.

2018 Tesla Model 3 Car Insurance

The average cost to insure a 2018 Tesla Model 3 with liability only coverage is $66 per month, while full coverage runs about $196 monthly.

Looking for the lowest policy? Hugo offered liability only coverage for as low as just $17 a month.

Want to figure out exactly what you'll be asked to pay? Get a variety of free customized quotes by just entering your ZIP code below.

2017 Tesla Model 3 Car Insurance

2017 Model 3 drivers can expect to pay an average of $83 per month for liability or $222 for full coverage.

Clearcover offered the cheapest policy we found, with rates sometimes as low as $33 a month.

If you want to know just how much your rate will be, just enter your ZIP code below and get several free quotes in minutes.

Tesla Model 3 Insurance FAQs

Is a Tesla Model 3 expensive to insure?

It costs more to insure a Tesla Model 3 when compared to the average car. Liability insurance runs an average of $80 monthly, while full coverage will cost you around $234.

How can I get the best price on car insurance for my Tesla Model 3?

There's only one way to be sure you're getting the lowest rates -- checking prices regularly and comparing quotes from multiple companies. Over time, your driver profile changes, so it's a good rule of thumb to review quotes every 6 months or so. Luckily, sites like Compare.com let you compare rates from a range of carriers at once, meaning you can find the cheapest rates (or guarantee you already have the best deal) for free.

Does the color of my Tesla Model 3 affect my insurance prices?

Have you heard the old adage that red cars cost more to insure before? Well, that's just a myth. There are many variables insurance companies use when they decide how much to charge you for auto insurance, but the color of your Tesla Model 3 is not factored into that equation.

Do I need to have insurance before I buy a Tesla Model 3?

You'll need to have valid car insurance for your vehicle before you can legally drive your it off the dealership lot. Some dealerships may offer you an insurance policy as part of the car-buying process, but the easiest thing to do is to let your auto insurance company know before you buy.

What car insurance discounts can I get for my Tesla Model 3?

There are many discounts out there for insurance. Many of them (like "pay-in-full discounts" and "multi-vehicle discounts") are more based on you than the car you drive, but if your Model 3 has safety features like anti-theft systems, anti-lock brakes, airbags, and other features, it may qualify for certain discounts. The best way to find out is to contact your insurance carrier and ask about which discounts they offer.