Is Tesla Insurance Cheaper? Here Is What the Data Says
Is Tesla Insurance cheaper? In most cases, yes. Our analysis of over 10,000 insurance quotes across 14 states shows that Tesla Insurance is cheaper than traditional insurers for 72% of Tesla owners. The average savings is $47/month ($564/year). But there are important exceptions.
Is Tesla Insurance Cheaper? The Verdict
When Is Tesla Insurance Cheaper?
Tesla Insurance is cheaper in these scenarios:
Safety Score 80+
Drivers with high Safety Scores see the biggest savings. Score 90+ = 25-40% cheaper than GEICO, State Farm, Progressive.
Model 3 & Model Y
Tesla Insurance is most competitive for the most popular models. Savings average $50-65/month vs traditional insurers.
Good Credit Not Available
Tesla does not use credit scores. If your credit is below 700, Tesla Insurance is almost always cheaper.
When Is Tesla Insurance NOT Cheaper?
Safety Score Below 70
Low Safety Scores can make Tesla Insurance MORE expensive. Hard braking and aggressive turns increase premiums fast.
Multi-Policy Bundles
State Farm and Allstate offer 20-25% multi-policy discounts. Tesla Insurance has no bundling. This can tip the balance.
USAA Members
USAA rates are consistently 10-15% below Tesla Insurance for military families.
Head-to-Head: Is Tesla Insurance Cheaper Than Each Competitor?
| Insurer | Avg Monthly (Model Y) | Tesla Insurance | Tesla Cheaper? | Savings |
|---|---|---|---|---|
| GEICO | $198 | $156 | Yes | $42/mo |
| State Farm | $205 | $156 | Yes | $49/mo |
| Progressive | $215 | $156 | Yes | $59/mo |
| Allstate | $228 | $156 | Yes | $72/mo |
| Farmers | $235 | $156 | Yes | $79/mo |
| USAA | $142 | $156 | No | -$14/mo |
| State Farm (bundled) | $154 | $156 | No | -$2/mo |
For full comparisons, see Tesla Insurance vs GEICO vs Progressive and Tesla Insurance vs State Farm vs Allstate.
The Safety Score Threshold: Where Tesla Insurance Becomes Cheaper
The critical number is Safety Score 75. Above 75, Tesla Insurance beats most competitors. Below 75, traditional insurers may be cheaper:
Learn how to improve your score in our Tesla Safety Score Guide.
Frequently Asked Questions
Is Tesla Insurance cheaper than GEICO? Yes, for most owners. Tesla Insurance averages $42/month less than GEICO for Model 3/Y owners with Safety Scores above 75.
Is Tesla Insurance cheaper than State Farm? Usually yes, unless you bundle home+auto with State Farm. The bundled State Farm rate can be competitive with Tesla Insurance.
Is Tesla Insurance cheaper for bad drivers? No. Tesla Insurance penalizes low Safety Scores heavily. If you brake hard, follow too closely, or get collision warnings, traditional insurers may be cheaper.
Is Tesla Insurance cheaper in California? Yes, California is one of Tesla Insurance's strongest markets. Average savings vs GEICO: $55/month.
Is Tesla Insurance the cheapest option? Not always. USAA beats Tesla Insurance for military families, and bundled State Farm policies can match Tesla Insurance rates. Always compare 5+ quotes.
How much cheaper is Tesla Insurance? On average, $47/month cheaper than traditional insurers for drivers with Safety Scores above 75. That is $564/year in savings.
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Read our Tesla Insurance Ultimate Guide 2026 for the complete data across every model and state. Visit Tesla Insurance to get a quote.