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Car insurance is a must-have for any driver. Not only does it protect you financially, but most states require at least some level of car insurance..

If you own a Tesla, you may be wondering where you should get car insurance. Tesla cars are surging in popularity these days, but you may find that you struggle to find affordable auto insurance coverage. This is where Tesla Insurance may come in handy.

Here’s what you need to know about Tesla car insurance:.

What is Tesla car insurance?

If you have a Tesla vehicle, there’s a car insurance policy to meet your needs. Tesla Insurance is an auto insurance offering from Tesla designed to provide competitively priced policies to Tesla owners in certain U.S. states.

Tesla cars are relatively new on the scene and utilize unique technology for their electric vehicles that not all auto mechanics know how to handle. Tesla Insurance is made specifically for Tesla owners since the company understands the needs of their cars when it comes to repairs, technology, and safety features. With Tesla Insurance, policyholders make a monthly payment to maintain their coverage.

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What makes Tesla Insurance different?

The main difference between Tesla’s car insurance offering and those of other auto insurers is how Tesla prices their policies. The company uses real-time driving behavior to determine your car insurance rate. Currently, this option is available to all Model S, Model 3, Model X, and Model Y owners that live in states where Tesla offers their insurance product.

Tesla is able to collect data on your driving habits through your car without using an additional app or a plug-in device. Instead, Tesla relies on its vehicle features to determine your premium. Your Tesla collects data on your driving behavior every month. It measures the following “Safety Factors”:

  • Forward Collision Warnings (alerts that appear when an object in front of your car could cause an accident without your intervention)
  • Hard Braking (slamming on the brakes)
  • Aggressive Turning (turning at high speeds)
  • Unsafe Following (following another vehicle too closely)
  • Forced Autopilot Disengagement (when your Autopilot shuts off because you haven’t been keeping your hands on the steering wheel or aren’t paying attention)
  • Late Night Driving (how much you drive at night), if your vehicle is on version 1.2 of the Safety Score program

Based on this data, Tesla gives you a monthly Safety Score from 0 to 100 (you get a score of 90 when you initially sign up). The higher your score is, the higher the indication that you’re a safe driver, and the lower your monthly premium will be as a result. Tesla notifies policyholders in advance if their monthly premium is going to change.

Good to know: You’ll get feedback from your Tesla on your driving behavior after every trip you take.

Another difference is that Tesla Insurance doesn’t base rates on the following factors (unlike most auto insurers):

  • Credit history
  • Gender
  • Age
  • Marital status
  • Driving history

How to get Tesla Insurance

If you decide that Tesla Insurance is the right fit for you, you can buy it directly through Tesla by following these steps:

  1. Sign in to your Tesla app. You’ll input personal details such as your address, date of birth, and driver’s license information. You can also input information about any additional drivers or vehicles you want to add to your policy.
  2. Choose your insurance coverage. You can get Tesla Insurance if you’re a current Tesla owner or a new Tesla owner. You can also choose to insure a different vehicle of yours that’s not a Tesla., And if you live in California, you don’t have to own a Tesla to purchase Tesla Insurance for your car.
  3. Make the purchase and review your confirmation email. After you purchase your insurance policy, you’ll receive a confirmation email. With that email, you can access your policy documents and insurance card. That email will also outline billing and payment details.
  4. Take advantage of insurance services. After purchasing Tesla Insurance, you can use the Tesla app to update your insurance payment method and to file claims.

Which states offer Tesla Insurance?

Tesla Insurance isn’t currently available in all states, but the company is working on adding more states. This insurance offering is currently available in:

  • Arizona
  • California
  • Colorado
  • Illinois
  • Maryland
  • Minnesota
  • Nevada
  • Ohio
  • Oregon
  • Texas
  • Utah
  • Virginia

How much is Tesla Insurance?

Your insurance rate with Tesla varies based on a variety of factors, including:

  • Vehicle type: You can insure Tesla Model S, Model 3, Model X, and Model Y vehicles. Generally, the more expensive your car is, the more it’ll cost to insure with Tesla. Other vehicle factors taken into consideration include make, model, trim, and model year, as all of these factors impact repair costs.
  • Where you live: The safety statistics in your neighborhood also impact your car insurance premium, so living in a safe neighborhood can save you money on car insurance.
  • How much you drive: For the first six months that you own your Tesla, your premium is based on your estimated mileage. After that point, your actual mileage helps determine your monthly payment.
  • What type of coverage you choose: At a minimum, you typically must have bodily injury and property damage liability coverage, but you can choose to purchase additional coverage, which can increase your costs. Other coverage factors that can increase premium costs include a higher coverage limit or a lower deductible.
  • Your Safety Score: The safer your driving habits, the more you’ll save on auto insurance. If you insure a non-Tesla vehicle, it won’t have a Safety Score.
  • Number of vehicles you insure: You get a 12% discount on your policy when you insure multiple vehicles with Tesla Insurance.

Learn More: Full Coverage Car Insurance: What Does It Mean?

Should I get Tesla Insurance?

If you own a Tesla, it’s worth getting a quote from the company to get an idea of what your car insurance cost could be. Although Tesla Insurance may not be the cheapest option for all drivers, it’s tailored specifically for Tesla vehicles (which have unique maintenance and repair needs), so you’re more likely to get service from professionals who understand the specific needs of your vehicle.

Keep in mind: Because Tesla Insurance is only a car insurance offering, you won’t be able to take advantage of bundling discounts (such as buying home and auto insurance from the same insurer).

It’s always a good idea to compare quotes from a few different auto insurance providers to find the best rate for your coverage needs.

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About the author
Jacqueline DeMarco
Jacqueline DeMarco

Jacqueline DeMarco has been a personal finance writer for over seven years and is a contributor to Credible. She has contributed content to more than a dozen financial brands, including LendingTree, Credit Karma, Fundera, Chime, MagnifyMoney, Student Loan Hero, ValuePenguin, SoFi, and Northwestern Mutual.

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