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What Is the Average Tesla Model Y Insurance Cost?

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by Nick Versaw Updated May 17th, 2022

Tesla Model Y insurance cost: woman using holding her tumbler and using her phone while her car is charging

Teslas are known for being more expensive to insure than other types of electric cars, so it makes sense to do your homework and estimate your auto insurance costs before driving home in one. Since each Tesla model is different, you can expect the average cost of insurance to vary a bit depending on the trim level and model year.

If you’re thinking of buying a Tesla Model Y, you’ll be happy to know that the average Tesla Model Y insurance cost is lower than that of other Tesla models. Still, there are plenty of other factors that impact the cost of car insurance, so it’s worth comparing quotes from multiple insurance providers in order to get the best rates.

Here’s what you need to know about Tesla Model Y insurance costs and how you can get the best auto insurance rates for your electric vehicle.

Tesla Model Y Insurance Costs Explained

There are plenty of things that distinguish Tesla vehicles from the average car, such as their long range battery packs and the Autopilot system. But there’s one thing that won’t change when you become a Tesla owner: the need for car insurance.

Fortunately, you don’t need to switch car insurance companies when you buy an electric vehicle. Major brands like State Farm, GEICO, and Allstate all insure electric vehicles, so if you’re happy with your own insurance company, you can stick with it.

But since Tesla Model Y insurance rates can be higher than average, it’s a good idea to shop around before to see if you can find better insurance prices somewhere else.


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What Type of Insurance Coverage Do You Need?

The Tesla Model Y isn’t the cheapest Tesla model — that would be the Model 3 — but it’s one of the more affordable Teslas, with prices ranging from $54,990 to $61,990.

Naturally, you’ll want the best car insurance coverage to protect that investment. But how do you know which type of insurance coverage you’ll need?

The bare minimum is liability insurance, which covers the cost of damage to another vehicle if you get into an at-fault accident.

But you might be required to maintain higher levels of coverage depending on where you live and whether you’re leasing or financing the vehicle.

A full coverage insurance policy will cover your Tesla Model Y repair costs if you get into an accident, while comprehensive coverage includes additional situations, like theft and natural disaster.

Tesla Model Y Insurance Costs vs. Other Vehicles

Tesla Model Y insurance cost: person checking their phone while waiting for their car to finish charging

Since the Tesla Model Y is more expensive to repair or replace than the average car, it tends to cost more to insure it — but maybe not as much as you think. Here’s what you need to know about Tesla Model Y insurance costs compared to other vehicles.

Liability Insurance Costs

Liability insurance covers things like injuries, property damage, and damage to another vehicle if you get into an accident. Since your insurance policy will be paying to fix another car, it isn’t necessarily going to be more expensive to get liability coverage.

In fact, since electric cars tend to be new vehicles with advanced safety features, they may actually be less likely to do damage than conventional cars.

For example, the Tesla Model Y has a 5-star safety rating from the National Highway Traffic Safety Administration (NHTSA) and a rollover risk of only 7.9%.

As a result, the average rate for liability insurance is $136 for electric vehicles vs. $139 for conventional cars.

Full Coverage Insurance Costs

Full coverage insurance is where Tesla Model Y insurance costs can get pricey. After all, if your Model Y gets damaged, your insurance company will have to cover the cost to repair expensive components like the battery pack and navigation system.

The average cost of full coverage insurance for a conventional vehicle is $289 per month. For an electric car, it can be as high as $359.65 per month.

The good news is that the Tesla Model Y costs less to insure than the average Tesla: around $266 per month, compared to $327 for all Teslas. The Tesla Model S is the most expensive to insure at $434.78 per month, while the Tesla Model X costs $388 per month, and the Tesla Model 3 comes in at $317 per month.

That makes for an annual rate of $3,198 to insure a Tesla Model Y — but the exact price will depend on other factors, such as your location and driving record.

3 Factors that Determine Tesla Car Insurance Costs

If you’re still deciding between a Tesla Model Y and another EV, this should give you a good idea of your ballpark insurance costs. Here’s what else your insurance company will take into account when calculating your premium.

1. Vehicle Age

First, how old is the vehicle? Although Teslas are known for holding their value, you can still expect them to depreciate over time. After a few years of ownership, the car’s value will go down and your insurance costs will drop accordingly.

This is worth keeping in mind if you’re deciding between a new and used Tesla. Buying a used Tesla is likely to result in lower insurance costs.

2. Location

Next, where do you live? Tesla owners in New York typically pay more for car insurance than drivers in California. Other factors, such as whether you live in a city and whether you own your own home, can impact your Tesla Model Y insurance costs too.

3. Driving History

The most important factor, though, is your driving history. Do you have a clean driving record or do you have multiple speeding tickets?

Although speeding tickets may be removed from your record eventually, more serious violations, such as a DUI, may result in higher insurance costs indefinitely.

How to Reduce Your Tesla Model Y Insurance Costs

Aside from choosing a used vehicle or moving to a state with lower car insurance rates, what else can you do to reduce your Tesla Model Y insurance costs?

Choose a Higher Deductible

Car insurance deductibles are the amount you’ll have to pay out of pocket if you get into an accident or file a claim. If you choose a low deductible like $250, you’ll pay less when you file a claim, but you’ll pay more in monthly premiums.

By choosing a higher deductible, such as $500 or $1,000, you may be able to lower your premium significantly — as long as you’re aware of the trade-offs.

Ask Your Insurer for Discounts

Many insurance companies offer discounts to drivers who pay in full, take a defensive driving class, or maintain multiple insurance policies, such as renters or homeowners insurance. Find out if you’re eligible, or switch to an insurer that offers them.

Compare Multiple Car Insurance Quotes

Finally, it’s good practice to shop around on a regular basis, even if you drive the same car for years. Your insurance company’s rates may change, or you may simply find a better deal somewhere else.

By comparing multiple car insurance quotes in one place, you can see how your rates will differ based on the type of coverage you choose and the deductible.


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Find the Best Insurance for Your Tesla Model Y

Couple talking to each other while their car is charging

It can be hard to estimate your Tesla Model Y insurance costs if you don’t know what trim level or model year you plan to buy. That’s why Compare.com makes it easy by allowing you to search for used cars and insurance quotes on the same site.

If you already have a car in mind, simply enter your ZIP code here to find the best car insurance rates for any make and model.

Otherwise, you can use our comparison tool to find the best used cars near you:


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