Why are Teslas so expensive to insure?

I was about to switch to a Tesla Model Y Long Range, but my broker quoted me an increase of $900/6 months compared to my current BMW X5. My record is clean, and my broker says this is common for EVs. Are others seeing similarly high insurance costs for Teslas?

I pay $100/month in Georgia for full coverage with low deductibles. It seems West Coast states have higher premiums for EVs. You might want to check out Alfa Insurance if it’s available in your area.

Hart said:
I pay $100/month in Georgia for full coverage with low deductibles. It seems West Coast states have higher premiums for EVs. You might want to check out Alfa Insurance if it’s available in your area.

I’m paying $120/month for my Model Y with Tesla Insurance. If my safety score stays at 95, it’ll drop to $90 next month.

@Poe
Those rates sound great. I’ll check Tesla Insurance. $100/month would be ideal.

Cass said:
@Poe
Those rates sound great. I’ll check Tesla Insurance. $100/month would be ideal.

Just keep in mind Tesla Insurance monitors your driving closely—things like nighttime driving, hard braking, and fast turns can increase your premiums. It’s not for everyone.

Insurance rates for Teslas are high due to the expensive repairs, lack of aftermarket parts, and low thresholds for total loss. The power and performance of Teslas also classify them closer to performance vehicles, which increases premiums.

@Ira
I was rear-ended shortly after getting my Model Y, and repairs cost over $20k. The car spent more time in the shop than I’ve owned it. Repairs for Teslas are slow and expensive due to part availability.

I’m in Colorado and pay $725 every 6 months for a Model Y with State Farm. Multi-car discounts help a lot.

Jess said:
I’m in Colorado and pay $725 every 6 months for a Model Y with State Farm. Multi-car discounts help a lot.

That seems reasonable. What coverage limits do you have?

San said:

Jess said:
I’m in Colorado and pay $725 every 6 months for a Model Y with State Farm. Multi-car discounts help a lot.

That seems reasonable. What coverage limits do you have?

I have 250/500 coverage limits with a $500 deductible.

Allstate was charging me crazy rates. I switched to Costco Insurance and got a much better deal.

Lex said:
Allstate was charging me crazy rates. I switched to Costco Insurance and got a much better deal.

I didn’t even know Costco offered insurance. Thanks for the tip!

Cass said:

Lex said:
Allstate was charging me crazy rates. I switched to Costco Insurance and got a much better deal.

I didn’t even know Costco offered insurance. Thanks for the tip!

Costco partners with American Family Insurance. It’s not available in every state, though.

I switched from a Volvo XC90 to a Model Y. Liberty Mutual wanted $550/month, but Progressive offered $1400/year for the same coverage. Shop around.

Teslas are expensive to insure because they’re costly to repair. The structural battery and unibody construction often mean even minor damage results in a total loss.

Insurance rates have gone up across the board. EVs, particularly Teslas, also tend to have higher repair costs and are more frequently totaled due to battery damage.

Would switching to liability-only insurance help lower premiums? I’m considering it since the repair costs seem to be the main issue.

Carter said:
Would switching to liability-only insurance help lower premiums? I’m considering it since the repair costs seem to be the main issue.

Liability-only is risky unless you have no assets to protect. If you can afford a Tesla, you should opt for full coverage.