Is Tesla Insurance Good? (Coverage, Cost, Review + More)

Have you ever asked yourself or your friend if Tesla insurance is worth the price? Well, you are at the perfect place to find the answer to such a question.

Tesla insurance is good for Tesla owners who need to save money while providing effective coverage for their Tesla. Insurance provided by Tesla is usually cheaper than other providers’ and covers cars effectively. However, it’s still expensive and isn’t always positively reviewed, so many customers feel it isn’t worth the money spent.

In the following article, we cover everything you need to know about whether Tesla insurance is good, including cost, customer reviews, and some of the pros and cons.

Table of Contents

Is Tesla insurance good?

Tesla insurance is good in specific circumstances. For Tesla owners who want to take advantage of what the company has to offer, Tesla’s own insurance can be a useful purchase.

Tesla insurance is particularly good for Tesla owners who want to save money on insurance that can otherwise by very expensive.

The insurance is also useful for gaining coverage from the company who built the car and probably know the car better than any other provider will.

However, it’s worth remembering that Tesla insurance isn’t suitable for every customer. Tesla insurance has gained some negative customer reviews and only has limited areas of coverage, meaning that not everyone can access the insurance.

How much is Tesla insurance?

Tesla cars are already more expensive than other cars, so you may not be surprised to find that insurance for your Tesla is more expensive than insurance for other cars.

However, Tesla claim that their insurance is usually cheaper than insurance from other providers.

On average, you can expect to spend around $3,200 per year on insuring your Tesla. However, through insuring with Tesla directly, you do have the opportunity to save money on your premiums.

Why is it so expensive to insure a Tesla?

Getting insurance for a Tesla is so expensive because you are essentially insuring a luxury car, which will always be more expensive than covering a regular car.

When you get insurance for a luxury car, you are relying on your coverage to protect your car in more ways, so you are required to pay more.

Not only are you paying for luxury, but you are also paying for the high-quality, high-powered technical systems that come with owning a Tesla.

Getting these systems repaired if any goes wrong can be very expensive, meaning you need higher insurance to cover it.

You are also limited as to where you can get work done on your Tesla. Most garages are unlikely to be able to manage work on a Tesla, so you will have limited options for Tesla-approved workshops.

What does Tesla insurance cover?

Tesla offers a few different varieties of insurance policy, to help you cover your Tesla in a number of ways.

Customers can get specific policies covering glass insurance, roadside assistance, accident or collision provisions, and comprehensive coverage.

Let’s look at each one in more detail:

Glass only insurance: Tesla’s glass only coverage is intended to help you protect your car’s glass from damage, and includes the windshield, side windows, and back window. With this policy, you will be allowed to either replace your glass or repair it, depending on the level of damage.
Roadside assistance: Tesla offers roadside assistance to help you in cases where your car cannot be driven. If your car breaks down unexpectedly, suffers a battery failure, or you get a flat tire, Tesla will provide you with towing assistance to get you where you need to go.
Accident or collision: This type of coverage allows you to get your car repaired in instances that your car is involved in an accident or collision with either a stationary object or another vehicle.
Comprehensive: The comprehensive coverage offered by Tesla protects your car in cases of damage that is not caused by an accident or collision. This policy offers coverage for things like theft or damage caused by bad weather and allows for the repair or replacement of damaged parts.

Tesla also offer also more specialized coverage options for anyone wanting additional protection for their car.

Some of the additional benefits include cover for key fobs that are lost or broken, rental coverage, and wall charger coverage.

How does Tesla insurance work?

Tesla insurance offers something called real-time driving behavior to assess your insurance premiums.

This is currently available in most of the states you can get Tesla insurance, and is open to all Model S, Model 3, Model X, and Model Y customers.

Tesla don’t rely on additional devices to monitor your vehicle, and instead uses features already in the car. These features inform Tesla of your premium based on your driving behavior, rather than things like credit, gender, claim history, age, or driving records.

You then make monthly payments to Tesla. Your premium is worked out based on the coverage you choose, your address, your vehicle, how much you drive, and your monthly Safety Score.

According to Tesla, you could save up to 60% depending on how you drive.

Where is Tesla insurance available?

Although Tesla have announced plans to expand their insurance program, Tesla insurance is currently only available in the following states:

Arizona,
California (real-time driving behaviour is not available in California),
Colorado,
Illinois,
Maryland,
Nevada,
Ohio,
Oregon,
Texas,
Utah,
Virginia.

How do I get Tesla insurance?

If you already own a Tesla, you can go into the app to arrange insurance cover for your car. In the app, you can click on your profile picture in the righthand corner, where you should choose ‘Get Tesla Insurance’.

For customers who are new to Tesla, you can buy insurance in the app. You will usually do so before taking delivery of your new car but after you have an assigned VIN. On your account, simply select ‘Get Tesla Insurance’ to get coverage for your car.

If you own a Tesla vehicle, you can add a non-Tesla car to your insurance policy by choosing to add the second vehicle when you purchase the policy. Alternatively, you can contact Tesla directly and set it up that way.

How do I claim on Tesla insurance?

To claim on your Tesla insurance, go to the Tesla app, where you can find all the information you need to report and file a claim.

To file your claim on the app, go to the ‘Claims’ section and choose ‘Account’, ‘Insurance’, ‘Manage’, and then ‘Claims’.

The Tesla app allows customers to submit evidence like photos to the app, where it can be used to support your claim. Tesla suggests doing so from the scene of the accident or damage.

In the event of an accident or emergency, you should call for emergency help before doing anything else, particularly if an injury has occurred.

When it is safe, you can begin to gather the information you need, including photos and contact details from other people involved.

Tesla recommends using the app to file a claim, however there are some alternative options. Instead, you can speak to the claims team at Tesla by calling 1-844-34-TESLA, available Monday-Friday, 7AM to 5:30PM.

Pros and cons of Tesla insurance

Pros

Unlike many providers who offer blanket coverage for customers, Tesla insurance offer a number of different types of coverage. This means customers have more control over which areas of coverage they choose and can adapt their insurance to meet the needs and requirements of their vehicle more effectively.
Tesla claim that their insurance is among the cheapest available to Tesla owners. They also allow customers to save money on their premiums by basing the costs off driving behaviours, where the safest drivers can save up to 60% compared with other providers.

Cons

Despite being able to save money on the costs of ensuring a Tesla, owners still pay a significant amount more to insure their cars than owners of regular cars. When you insure a Tesla, you pay for luxury and high-tech features that regular cars don’t have, so you may automatically find yourself paying more money.
There are a limited number of body shops available to work on Tesla cars, as most regular garages don’t have the provisions they need to properly repair a Tesla. Due to this, owners can find it difficult to find somewhere to get their Tesla repaired when something goes wrong.
Finally, customer reviews can sometimes be less than positive, particularly in regard to customer service. Negative customer service can affect the whole experience of buying from a brand, so for many customers, Tesla’s customer service means it simply isn’t worth the expenses that come with its insurance.

Tesla Insurance FAQs

When was Tesla insurance created?

Tesla launched their insurance program in 2019 and have been working on its expansion since. Over the past three years, Tesla have worked to grow the areas provided for and the types of coverage available.

What do customers say about Tesla insurance?

As Tesla insurance has only been available since 2019, it can be difficult to find many customer reviews. However, rating websites show that many customers gave average reviews to Tesla insurance.

Many customers had poor experiences with customers service and were disappointed in the repairs process, causing several to leave negative reviews.

Can I get my deductible back if an accident was not my fault?

In cases where another party was responsible for an accident that has damaged your car, you may be able to get your deductible back.

Tesla’s Recovery Department can try to get your deductible back from the responsible party, and you will be reimbursed in full or in part depending on the amount and any relevant laws.

Whether your deductible will be recovered depends on the situation and your claim. It can take months for liability to be resolved and your money to be recovered, as issues can come from the other party and their insurance provider.

In some cases, it may not be possible for your deductible to be recovered at all.

Can I get a rental vehicle?

You may be eligible for a rental vehicle if you have Rental coverage included in your policy. A rental may be necessary if your car is deemed undriveable or is in need of repairs.

The rental you receive will be from a Tesla-approved rental vendor, who will reimbursed directly based on the Rental coverage you have.

Final Thoughts

Tesla provide a number of different coverage types and their insurance is usually cheaper than other providers’.

However, it’s still more expensive than insurance for other cars, and many customers have had a less than positive experience.

So, while Tesla insurance can be useful, it likely isn’t a good option for everyone.

References

https://finance.yahoo.com/news/tesla-insurance-worth-price-plus-224700704.html

https://www.tesla.com/support/insurance