Insurance on a Tesla

Insurance On A Tesla – What You Need to Know


What does insurance on a Tesla look like? Savvy shoppers ask themselves this, especially if seriously considering buying a Tesla. The cost of a Tesla can be higher than your typical car, and rightly so. Tesla is a prominent company that offers a unique product. Stepping into a Tesla can feel like taking a step into the future, and can also be good for the environment. This can be a big pull for some buyers, especially when they have different levels of electrical charging stations near them. From the sleek interior to the smooth ride it creates an experience that few cars can offer.

When push comes to shove though, you may have to forego the electric car if you did not plan for insurance on a Tesla and what it requires. This extra bit of cash can make or break your decision to buy the vehicle, so it is vital to know all of the details that go into car insurance.

Before Getting Insurance on a Tesla

This is going to be the most prominent hurdle to clear. If you do not have a Tesla, obviously you are not going to need to have car insurance for a Tesla. Be sure to take a look at different dealerships in your area, and set up a time to go test-drive various Tesla models. Getting a Tesla is similar to getting any car in that the seller will still ask for a down payment and check your credit score.

Costs Going Into A Car

These are expenses that everybody knows about, but not everybody thinks about before getting a car. This can include maintenance costs like brake fluid tests and getting your tires rotated.

If you are buying a used car, unseen costs can come from such things as interior touch-ups or things that are wrong with the car (like the entertainment system not working properly).

When taking that test drive, be sure to check for things such as turn signals, lights, horns, and brakes, to verify that they work properly.


Get Ready to Budget for Insurance on a Tesla

Buying a new car is something that most people should budget for. Unless you have a lot of extra cash laying around, you probably need to consider your finances and if you can afford a Tesla as well as everything that comes with it. Insurance on a Tesla is going to be a little different than your regular car.

If you have a brand new Tesla, your insurance rates are going to be a little higher. Depending on who you go through, they may offer a discount for newer cars. This does not impact your insurance cost, though, so be ready to pay a couple hundred a month for your Tesla.


Dealership With Insurance for a Tesla

Different Factors

At the end of the day, insurance on a Tesla is similar to other auto insurance. The make and model are going to determine the cost of your insurance policy. The year of the Tesla also plays a factor in the total cost. Your driving record and age can also influence insurance costs.

Tesla has started its own insurance that launched in October 2021. This insurance is based on driving behavior instead of the traditional different factors. For now, however, Tesla’s own insurance is only available in the state of Texas.


Electric Cars

Even with all the financial and ethical benefits with electric cars, especially Tesla’s, the fine print with costs can be startling. There are certain rebates that Tesla owners qualify for in the United States. If the Tesla you want costs 35,000 with the rebate, when you go to checkout it is going to cost the full price without the rebate. You cannot receive your rebate until the next tax season. This is not a surprise that you want to find out when you get to signing papers. It is best to know about it before. It is important to know what you will be paying for before you are checking out.

Average Costs for Insurance on a Tesla

The average annual cost for insurance on a Tesla is $1940. Understand, however, that is the average and there are going to be insurance policies that cost less and insurance policies that cost more. The cost is going to depend on the different factors we mentioned previously.

Two thousand dollars is a good amount of money. If you do not have substantial savings, you will want to save up for the annual cost of auto insurance. Most insurance companies will have you pay it once a year instead of month to month.

Decide What Is Best For You


At the end of the day, a Tesla may, or may not, be the right fit for you right now; this is okay. You can save up for a down payment for a Tesla, or make getting one a personal goal. Switching careers or getting a higher-paying job may also be necessary. Allow yourself to be in the right financial situation before you take on an auto-payment that costs too much. If you are unsure, talk to your insurance agent, who can help you assess your situation.

If you have the finances for a Tesla, and understand the helpful and necessary costs of insurance, then ready yourself for a new car. Take that test drive, and see what model and make is going to be best for you. Talk with different dealers and keep your eyes peeled until you find the perfect Tesla for you and your situation. After you have signed and gotten the keys, it is time to sit down in your new car and drive it off the car lot.

Do you think that buying and getting the right car insurance for a Tesla is right for you and your budget? If you are located in the state of Arizona and need help navigating the different plans of auto insurance, give us a call at Insurance Professionals of Arizona. Our trusted Insurance Professionals are sure to get you the help that you need.

At IPA, we understand that your needs and situation can change, which means your insurance needs will change as well. Our company is here for you and wants to make sure you feel like you are right at home and happy with your insurance plan.

Ready to make the switch and get amazing insurance? 

We’re here to help! Call us today.

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