How much is insurance on a tesla model 3?

Buying a Tesla Model 3 is an exciting investment — but before you commit, you should thoroughly understand your insurance costs. Insuring a Model 3 typically costs more than your average vehicle due to repair complexity, parts cost, and its status as an electric vehicle. Knowing the ballpark premiums, the factors that drive them, and how you can manage the cost will help you budget smarter.

🟩 Quick Definition 

Insurance for a Tesla Model 3 averages around $3,000-$4,000 per year for full coverage, though actual cost varies depending on driver profile, location, coverage level, and vehicle trim.

Typical Cost Ranges

• The average full-coverage annual premium for a Model 3 is around $3,000 per year (≈ $250 per month) for a driver with good credit, clean record, and in a moderate-risk state.

• Some estimates show monthly premiums of $200-$300 for full coverage on a standard driver profile.

• For minimum-required coverage only (liability), the cost can drop significantly — around $100-$150 per month depending on location.

Key Cost Influencers for a Tesla Model 3

1. Vehicle trim and price – More expensive trim levels (e.g., Long Range, Performance) lead to higher premiums due to higher replacement value and advanced components.

2. Repair and parts cost – Tesla parts and electric-vehicle components often cost more, and fewer repair shops are certified to handle them, which pushes up insurance cost.

3. Driver profile – Age, driving history, credit, and claims record heavily impact cost. Younger or higher-risk drivers will pay much more.

4. Coverage level – Full coverage (liability + collision + comprehensive) costs significantly more than minimum required liability. Choosing higher deductibles or lower cover can reduce cost.

5. Location and state risk – State regulations, local claim rates, repair network availability, and regional risk all affect premiums.

How to Estimate Your Insurance Cost

• Start with national benchmark: around $3,000 per year for full coverage (clean profile).

• Adjust for your factors: if you live in a high-risk area, pick a Performance trim, or are a younger driver, your cost may rise to $4,000+ per year.

• If you opt for minimum liability only (if allowed in your state), cost might drop toward $1,000-$2,000 per year, but you’ll have more uncovered risk.

• Get multiple quotes: since rates vary by insurer and state, comparing is essential to find the best deal.

FAQs

Q1. Is a Tesla Model 3 much more expensive to insure than other vehicles?
Yes — while it’s one of the more affordable Teslas to buy, its insurance cost is still higher than the average car because of value, repair complexity, and specialty parts.

Q2. Will choosing an older model year reduce insurance cost a lot?
Yes, typically — a slightly older Model 3 with a lower value will cost less to insure. But other factors (trim, driver, location) also play a role.

Q3. Can I reduce insurance cost for a Model 3?
Yes — consider higher deductibles, limiting optional add-ons, maintaining a clean driving record, and bundling policies. Also shop with providers who specialize in EVs.

Q4. Does insurance cost differ between trims (Standard vs Performance)?
Yes — Performance trims cost more due to increased risk, power, and higher replacement value.

Q5. Does having Tesla’s safety or autopilot features help lower the premium?
Potentially yes — advanced safety features can reduce incident risk, leading to discounts with some insurers.

Final Thoughts

Insuring a Tesla Model 3 is a major part of total ownership cost. With full coverage you should budget around $3,000 per year (about $250 per month) as a baseline for a good driver in a moderate-risk state. Adjust based on your driver profile, trim, location, and coverage preferences. Comparing insurers and understanding cost factors ensures you’re prepared and avoid overpaying.