I’m 24 and bought a Model Y LR earlier this year for $37k after the EV tax credit. This is my first time having my own insurance, as I was previously on my parents’ policy. Initially, I paid $1,600 for six months in Kentucky, but it recently jumped to $2,400. I’ve shopped around, but this seems to be the best rate I can find. While I can afford it, it feels like a waste of money. I’m considering trading it in for a Camry or Accord to reduce costs. Does this make sense, or am I overthinking it?
At your age, insurance rates are naturally high. Whether you keep the Tesla or trade it for a cheaper car depends on your priorities. Bundling policies like renters or homeowners insurance could help lower your rate.
@CoverageConnections
24 is peak age for insurance to be pricey. If you can hold out until 25, rates may drop.
@CoverageConnections
Even older drivers with great histories face high Tesla insurance premiums. My quote for a Model Y was $1,800 for six months, compared to $650 for other cars like an Audi SQ5.
Drue said:
@CoverageConnections
Even older drivers with great histories face high Tesla insurance premiums. My quote for a Model Y was $1,800 for six months, compared to $650 for other cars like an Audi SQ5.
Tesla insurance premiums seem tied to how easily the car can be written off after an accident. My 2023 Model Y Performance costs $3,600/year in Canada despite my 20+ years of clean driving.
Drue said:
@CoverageConnections
Even older drivers with great histories face high Tesla insurance premiums. My quote for a Model Y was $1,800 for six months, compared to $650 for other cars like an Audi SQ5.
Premiums vary by provider. My Tesla insurance in South Florida costs $930 for six months, which is cheaper than what many pay in Miami.
Before trading in, check how much you’d actually save on insurance with an Accord or Camry. The savings might not justify the switch.
Fintan said:
Before trading in, check how much you’d actually save on insurance with an Accord or Camry. The savings might not justify the switch.
Trading for a 2018 Camry SE would lower my monthly costs significantly.
@Jordy
You could also insure a beater car as your primary vehicle and list the Tesla as a secondary car. That might lower your premium.
@Jordy
Make sure the savings justify the downgrade. It might make more sense to hold onto the Tesla if you can comfortably afford it.
At 24, you might be better off with a cheaper car and using the money saved for travel or investments. Tesla ownership might be more practical in your 30s.
Rin said:
At 24, you might be better off with a cheaper car and using the money saved for travel or investments. Tesla ownership might be more practical in your 30s.
Good advice—thank you.
Insurance premiums depend on who is listed as the primary driver. When my daughter was listed, our premium was $250/month. When I switched it to myself, it dropped to $130.
Insurance rates are high across the board, not just for Teslas. Companies are raising rates due to increased repair costs and other factors.
At 24, $2,400 for six months isn’t shocking for a $37k car. What’s your driving and credit history like? Those factors play a big role.
I’m 23 and pay $175/month for Tesla insurance. It’s worth checking if it’s available in your state.
That’s high for Kentucky. At your age, I paid $120/month in California with full coverage. Shopping around might help.
Insurance costs are high at your age, but Tesla premiums are particularly steep. Even at 37, I found Tesla insurance shocking compared to other vehicles.
Try adjusting your coverage limits and increasing your deductible. Also, make sure to only estimate the miles you actually drive.
Congrats on buying a Tesla at 24! Insurance costs are tough, but it’s a big accomplishment.