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Tesla insurance costs
Teslas are more expensive to insure than a petrol car but the model you get can also make a big difference.
Key statistics
- A Tesla Model 3 comprehensive car insurance policy costs $3,500 on average – nearly $300 a month.
- A Tesla Model Y comprehensive car insurance policy costs $3,900 on average – about $325 a month.
- A Tesla Model S comprehensive car insurance policy costs $5,500 on average – almost $460 a month.
- A Tesla Model X comprehensive car insurance policy costs $6,825 on average – over $560 a month.
- Insurance costs for the most popular Tesla, Model Y is 193% higher than a traditional petrol car.
- Out of 16 car insurers, 4 did not cover Tesla Models 3, Y and X. 7 did not cover Model S.
How much does it cost to insure a Tesla in Australia?
We applied for quotes from 16 popular car insurers including AAMI, Budget Direct and NRMA. All were for comprehensive car insurance policies. 4 insurers didn't insure Teslas at all and an additional 3 didn't insure the Model S. Keep in mind that prices will differ based on your driving profile – for example, your age, driving history and where you live.
Tesla Model 3. Average insurance costs for the Tesla Model 3 were $3,500. This is 157% higher than the average annual premium for a Toyota Corolla, according to our Finder Awards.
Tesla Model Y. Average insurance costs for the Tesla Model Y were $3,900. This is 193% higher than the average annual premium.
Tesla Model S. Average insurance costs for the Tesla Model S were $5,500. This is 304% higher than the average annual premium.
Tesla Model X. Average insurance costs for the Tesla Model X were $6,825. This is 401% higher than the average annual premium.
Average cost of car insurance for a Tesla
| Tesla model | Car insurance cost |
|---|---|
| Model 3 | $3,500 |
| Model Y | $3,900 |
| Model S | $5,500 |
| Model X | $6,825 |
Why is a Tesla so expensive to insure?
There are a few reasons that Teslas cost more to insure than a regular car. These include:
- The parts are more expensive to produce and replace
- Some parts need be imported to Australia
- Regular mechanics might not be able to repair Teslas – they will need to go to a specialist
- Repairing and replacing damaged electric vehicle batteries is costly and time-consuming
- Some models like Model S and Model X have been discontinued in Australia
"For the first 4 years, a few things were covered under warranty – like the knobs on our steering wheel wore down and were replaced for free. But for general repairs, it's pricier. When driving on the freeway a rock flicked up and caused a 4-inch crack in the rooftop glass – the quote was $1400 to replace it. You definitely need to budget a little more for repairs."
What might impact my Tesla insurance costs?
- Your age, gender and driving history. The younger you are, the more expensive insurance tends to cost. Males also typically pay more, as do people with demerit points.
- Your home address. You will pay more if you live in a suburb with a higher crime rate or flood-prone location. It will also make a difference where you park your Tesla at night – outside on the street, a driveway or inside a locked garage.
- The model of your Tesla. More expensive or rare Tesla models tend to cost more to insure.
- Level of cover. You can choose from three levels of cover: comprehensive, third party property and theft, or third party property only. Comprehensive cover is the most expensive because it's the only policy that covers damage to your Tesla as well as other cars.
Fuel efficiency standards
The Australian government plans to introduce a New Vehicle Efficiency Standard (NVES) by 2025. This would place a cap on the emissions output for new cars sold in Australia to incentivise carmakers to supply low and zero emissions vehicles. It could save you up to $1,000 in fuel and $17,000 over the life of the vehicle.
Compare car insurance for a Tesla
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