Can I Insure Someone Else's Car in Texas
A Tesla electric car isn't cheap — the company's lowest-priced vehicle costs roughly $40,000 for the base model — and buying insurance for it isn't either. Despite the cars' high safety ratings, Tesla insurance can be significantly more expensive than the same coverage for other popular vehicles.
To give Tesla fans an idea of what to expect, NerdWallet checked rates for full-coverage auto insurance on the lowest-priced Tesla, the Model 3. Here's what we found.
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Average cost of Tesla Model 3 insurance
Tesla Model 3 insurance costs an average of $2,215 per year, or about $185 a month, our analysis shows. That's nearly 40% higher than the national average cost of car insurance .
But rates vary widely from one insurer to the next. Among the five largest car insurance companies in the U.S. , price differences for Tesla car insurance can be more than $1,000 a year.
What company has the cheapest Tesla car insurance?
Progressive has the cheapest rates on average for Tesla Model 3 owners among the nation's largest insurers. Although USAA has lower rates, it was not included in our analysis because it is offered only to military members, veterans and their families.
To find the cheapest Tesla auto insurance, make sure to check smaller regional providers as well. They may beat out the bigger players in your neighborhood.
Tesla Model 3 insurance rates from large companies
| Company | Average annual rate |
|---|---|
| 1. Progressive | $1,815 |
| 2. State Farm | $1,943 |
| 3. Geico | $2,565 |
| 4. Allstate | $3,331 |
| USAA * | $1,145 |
| * USAA isn't ranked because it is available only to active military, veterans and their families. | |
How much does Tesla car insurance cost in my state?
Tesla Model 3 insurance costs aren't fixed across the U.S., with average annual rates for full coverage ranging dramatically by state.
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Maine has the lowest average cost to insure a Tesla Model 3, coming in at $1,245 annually.
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Louisiana has the highest average cost to insure a Tesla Model 3, at $3,436.
While the price you pay might vary based on your location, you're likely to spend more than your non-Tesla-owning neighbors for auto insurance. Of the 25 most popular cars in the U.S., the Tesla Model 3 is the most expensive to insure, on average, in every state except New York, where it comes in second to the Toyota Highlander LE.
Below are the average Tesla Model 3 insurance rates in each state.
You can save money by shopping around to find the cheapest Tesla car insurance. The table below shows the cheapest average rate we found in each state, which could be anywhere from $300 to $2,000 below the state average.
We didn't include USAA in our analysis because it's available only to active military, veterans and their families, but it's also worth a look if you're eligible. In 30 states, USAA offered the cheapest rates for Tesla auto insurance.
Tesla Model 3 insurance rates by state
| State | Cheapest average rate | Cheapest provider |
|---|---|---|
| Alabama | $1,252 | Travelers |
| Alaska | $1,372 | Progressive |
| Arizona | $1,141 | Nationwide |
| Arkansas | $1,239 | Southern Farm Bureau Casualty |
| California * | $1,725 | Kemper |
| Colorado | $842 | American National |
| Connecticut | $1,404 | Nationwide |
| Delaware | $1,394 | Nationwide |
| Florida | $2,155 | State Farm |
| Georgia | $1,281 | Nationwide |
| Hawaii | $1,248 | State Farm |
| Idaho | $510 | American National |
| Illinois | $768 | Pekin |
| Indiana | $714 | Pekin |
| Iowa | $898 | Hastings Mutual |
| Kansas | $1,212 | Farm Bureau Financial Services |
| Kentucky | $1,948 | Grange |
| Louisiana | $2,067 | Southern Farm Bureau Casualty |
| Maine | $715 | Concord Group |
| Maryland | $1,268 | Nationwide |
| Massachusetts | $686 | State Farm |
| Michigan | $1,410 | Pioneer State |
| Minnesota | $1,021 | Farm Bureau Financial Services |
| Mississippi | $1,358 | Mississippi Farm Bureau |
| Missouri | $1,653 | Missouri Farm Bureau |
| Montana | $1,474 | Nationwide |
| Nebraska | $997 | Nationwide |
| Nevada | $1,349 | Progressive |
| New Hampshire | $767 | Concord Group |
| New Jersey | $1,349 | Plymouth Rock |
| New Mexico | $1,430 | Farm Bureau Financial Services |
| New York | $606 | Main Street America |
| North Carolina | $1,170 | State Farm |
| North Dakota | $1,118 | Nationwide |
| Ohio | $739 | Hastings Mutual |
| Oklahoma | $1,612 | Progressive |
| Oregon | $981 | Nationwide |
| Pennsylvania | $1,041 | Penn National |
| Rhode Island | $1,129 | State Farm |
| South Carolina | $624 | American National |
| South Dakota | $1,220 | Farmers Mutual of Nebraska |
| Tennessee | $1,141 | Grange |
| Texas | $1,351 | Nationwide |
| Utah | $1,039 | Nationwide |
| Vermont | $793 | Nationwide |
| Virginia | $827 | Nationwide |
| Washington | $933 | Oregon Mutual |
| Washington, D.C. | $1,472 | Erie |
| West Virginia | $1,073 | Nationwide |
| Wisconsin | $895 | Hastings Mutual |
| Wyoming | $1,813 | Farmers |
| * Rates weren't available for Tesla's own plan, Tesla Insurance, which is offered only in California. | ||
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Why Tesla insurance is so expensive
The more your car costs, the more it costs to insure. If you're in an accident and need repairs, your collision insurance is going to pay unless it was totally someone else's fault. And if your Tesla is stolen, it'll cost your insurer more to replace it than a less expensive vehicle, so it'll charge you more for that coverage.
How much is a Tesla?
Teslas are expensive compared with many cars, priced similarly to luxury cars and other electric vehicles. For example:
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Tesla Model 3. The cheapest Tesla starts at about $40,000 for its basic trim, Standard Range Plus. Upgrade to the Long Range Model 3 for about $49,000 or to the Performance Model 3 for just under $57,000.
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Tesla Model Y. This car costs about $52,000 for its base trim.
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Tesla Model S. The Model S jumps up in price with a starting cost of nearly $80,000 before add-ons and upgrades.
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Tesla Model X. This car's base price starts at nearly $90,000, with upgrades costing tens of thousands.
Upgrading beyond the basic model can send your Tesla cost skyrocketing. For example, you'll pay $10,000 to add self-driving capability, and any paint color other than white will set you back an extra $1,000 to $2,000. The more features you add to your Tesla, the more it will likely cost to insure.
Tesla repair costs
Teslas are made out of expensive parts, contributing to their base cost. For starters, a Model 3 battery costs thousands of dollars to replace.
Tesla repair costs are also higher due to the cars' aluminum bodies, which are much more expensive than those made with traditional materials. If you damage a plastic or steel part on your 2012 sedan, an auto body shop can fix it for relatively little cost. The same isn't true for aluminum.
All of those potential repair costs come back to owners in the form of higher Tesla car insurance prices. To ease the burden, the carmaker is rolling out an insurance option it says will be less expensive called Tesla Insurance.
What is Tesla Insurance?
Tesla is now a licensed broker providing insurance in California from State National Insurance to Tesla drivers. The company claims drivers can save 20% to 30% over the cost of insurance through other carriers.
You can currently buy Tesla car insurance for the following vehicles: Model S, Model X, Model 3, Model Y and Roadster.
How Tesla Insurance works
Tesla says it understands how drivers use its cars and takes all of the vehicles' safety features and crash avoidance systems into account when pricing insurance. The company says it doesn't currently use personalized driving data collected by the vehicles in its pricing.
In addition to liability, collision and comprehensive insurance, Tesla also offers additional coverage for wall chargers, electronic key replacement and identity fraud.
In its initial filings, Tesla Insurance also included collision and liability car insurance discounts for the use of autonomous driving features, ranging from 5% to 30% depending on the level of autonomy in use. Families with multiple Teslas would also be eligible for discounts.
Tesla is currently looking to expand its insurance offering into three additional states — Texas, Illinois and Washington — with the eventual goal of selling policies across the U.S.
Until then, keep rates down by comparing several car insurance quotes to make sure you're getting the best deal.
Frequently asked questions
A brand-new Tesla costs anywhere from about $40,000 to $120,000, depending on which model and trim you choose. Adding self-driving capability, choosing a paint color besides white and other customizations can increase the sticker price.
The average annual cost to insure a Tesla Model 3 — $2,215 — is nearly 40% higher than the average national cost of car insurance, according to NerdWallet's analysis. Tesla says its own insurance can save drivers 20% to 30%, but policies are currently available only in California. If you live elsewhere, check multiple companies to find the best car insurance quotes for you.
The company currently offers insurance for Tesla owners in California, including a mix of standard coverage (such as liability, comprehensive and collision) and coverage for wall chargers and electronic keys. Tesla plans to roll out its insurance across the country in the future, but for now owners outside of California will have to shop around for car insurance rates from other companies.
Can I Insure Someone Else's Car in Texas
Source: https://www.nerdwallet.com/article/insurance/tesla-insurance