Insurance Guide for Electric Vehicles like Tesla

According to the Highway Loss Data Institute, insurance premiums for Tesla owners could potentially go up by approximately 30 percent or more. This is because drivers of Teslas have submitted 46 percent more claims on average than vehicles of the same class. Insurance claims for Teslas also typically cost twice as much as an average automobile insurance claim.

Teslas tend to cost more to repair than vehicles of the same class. The type of class a vehicle is placed into depends on the size, weight and competing models of the specific automobile.

businessman talking on the phone while electric vehicle charges

Costs of Insuring your Tesla

For drivers in a big city, you can expect to spend at least $2,000 each year to insure your Tesla. However, if you live in a smaller city or town, you potentially may not have to pay quite as much. Also, you can expect to pay even more if you have a history of car accidents or driving infractions.

Actual Cash Value

Most standard automobile policies typically provide an actual cash value coverage, which generally represents the fair market value of your vehicle, taking into consideration its condition and also factoring in depreciation. 

Stated Value

The true meaning of stated value is often misinterpreted by insurers and policyholders. Some insurance agencies use the terms stated value and agreed value interchangeably. However, this usage is not correct. A stated amount policy means that the insurer will pay the lower amount of either repair costs, the stated policy amount, or the vehicle’s actual cash value. 

Agreed Value

This is usually the most robust type of coverage you can have. When you get into an accident in your Tesla, an insurance policy with agreed value will cover the loss up to the agreed amount stated in your policy. These policies do not have actual cash value stated anywhere in the coverage. However, you will want to verify that your insurer uses an accurate value for your Tesla when they issue the policy. Also, if that value changes at any time, you want to have the option to change the agreed-upon value as well.

Collision and Comprehensive Coverage

If you are the owner of a Tesla, it is a good idea to purchase additional collision and comprehensive insurance coverage. This will usually run you about $1,000 to $2,000 annually, although the exact amount may be lower or higher than those figures depending on a variety of factors. However, if you get into an accident and do not have this coverage, you might be forced to spend thousands of dollars out-of-pocket to get your vehicle repaired.

Discounts on Tesla insurance

Although the cost of Tesla insurance claims may rise, owners of Tesla Model 3 and Model S cars may be eligible for several different discounts. First, Teslas are semi-autonomous vehicles. Some insurance companies may offer discount programs for owners of semi-autonomous vehicles. Teslas are also electric, and many insurance companies offer discounts to drivers of eco-friendly vehicles. You may also be able to save money on your automobile insurance through rebates and tax incentives. As of the writing of this article, the federal government and many states are offering attractive tax incentives related to the purchase of certain new electric vehicles. 

electric vehicles charging at a station at sunset

Insurance for Your Electric Vehicle

No matter if you’re looking for a new policy for your electric vehicle or you are looking to renew your existing policy, the team at Cross Private Client Insurance would be happy to speak with you about your insurance coverage options for your electric vehicle.



This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.


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