What Accounts for Tesla's Expensive Insurance Rates?

The Tesla model you drive, the zip code you provide, the number of miles you put on your car each month,

the type of coverage you select, and the vehicle's safety rating in the previous month all factor into your insurance premium.

With Tesla's auto insurance, a customer's policy is linked directly to their vehicle,

allowing the company to assess the customer's risk based on actual driving patterns and set monthly premiums accordingly.

Insurance companies primarily use expected repair costs after an accident to determine premiums,

which is why Teslas have such high premiums.

The high cost of repairs and maintenance for a Tesla makes collision insurance for the vehicle more expensive than for other luxury vehicles or EVs.

Insurance companies have to shell out more money if your Tesla is damaged in an accident,

and that cost gets passed on to you in the form of higher monthly payments on your policy.

Large auto insurance companies typically cover Teslas,

but the premium is higher because the company considers them luxury vehicles.

By using what it has learned about the safety features and partially automated driving technology built into the Tesla,

the company hopes to reduce insurance costs for drivers, especially those who make use of the Autopilot feature.

which can also increase premiums. Ultimately, it all adds up to higher insurance rates for Tesla owners.