Haris Ashley
The insurance cost of a Tesla Model 3 varies depending on several factors, including the driver's age, state of residence, driving record, and insurance company. For example, the average insurance cost for a 40-year-old male driver with a clean record is $464 per year, while younger drivers and seniors over 55 typically face higher insurance costs. The state of residence also plays a significant role, with Louisiana being the most expensive state for Tesla Model 3 insurance, while Hawaii offers the cheapest rates. Additionally, insurance companies like State Farm and USAA offer competitive rates for the Tesla Model 3, with State Farm providing the lowest average minimum and full coverage rates. It's worth noting that Tesla's own insurance program can be a cost-effective option, especially for good drivers, but it is currently only available in a limited number of states.
| Characteristics | Values |
|---|---|
| Average cost of insurance | $3,466 a year for a 2024 Tesla Model 3 |
| Average monthly cost | $282 |
| Cheapest insurance provider | State Farm |
| Cheapest state to insure | Hawaii |
| Most expensive state to insure | Louisiana |
| Age of driver | Younger drivers pay higher rates |
| Gender | Men pay more than women up to the age of 40 |
| Driving record | A clean record will help keep costs down |
| Type of car | Electric vehicles are more expensive to insure |
| Location | Insurance rates vary by state |
| Annual mileage | The more you drive, the higher the premium |
| Credit-based insurance score | Poor credit risks pay more |
| Lapse in auto insurance coverage | A lapse will increase the premium |
| Type and amount of insurance coverage chosen | Higher coverage increases the premium |
| Safety score | A higher safety score lowers the premium |
What You'll Learn
The age of the driver
The cost of insuring a Tesla Model 3 also varies depending on the state. Louisiana is the most expensive state, with an average rate of $5,718 annually, while Hawaii is the cheapest, with an average rate of $2,059. State Farm is the most affordable insurer for non-military-affiliated Tesla Model 3 owners, with an average rate of $464 per year for a 40-year-old male driver with a clean record. The average cost of Tesla auto insurance is $3,466 per year for a 2024 Tesla Model 3, and the cost increases for newer models.
Tesla's in-house insurance program is very competitive, especially for good drivers, and is currently available in 12 states. In California, Tesla Insurance does not use driving habits or safety scores to set rates, as this is not legally permitted. However, in other states, Tesla collects data on driving habits through its cars and assigns a Safety Score, with higher scores resulting in lower insurance rates.
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The state of residence
The state in which a Tesla Model 3 owner resides can have a significant impact on the cost of their insurance. This is due to a variety of factors, including state regulations, past claims in the state, medical costs, repair costs, and more. For example, Louisiana is the most expensive state for Tesla Model 3 auto insurance, with an average rate of $5,718 annually, while Hawaii is the cheapest, with an average rate of $2,059.
The cost of insurance can also vary depending on the city within a state, as each city has different rates of car thefts, accidents, and population density. This means that even within the same state, insurance rates can fluctuate depending on the specific location of the insured vehicle.
In addition to location, other factors that can influence the cost of insurance for a Tesla Model 3 include the age of the driver, their driving record, the type of coverage chosen, and the vehicle's trim and upgrades. For example, younger drivers, especially teens, tend to have much higher insurance rates, which decrease as the driver gets older. Rates may also increase for newer models, even of the same car, as they have not yet depreciated and tend to cost more to insure.
It is worth noting that Tesla offers its own insurance program, which is available in a limited number of states. This program bases its rates on the driver's safety score, which is calculated using real-time driving behavior data collected through the Tesla car. While this program can offer competitive rates for good drivers, it is important to shop around and compare quotes from multiple insurance companies to find the most affordable option.
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The driver's gender
The reason for the difference in insurance costs between genders is attributed to factors such as driving records, risk factors, and fatal accident rates. Women tend to have safer driving records than men, and thus benefit from cheaper rates, especially at younger ages. Additionally, according to an IIHS report, males are overrepresented in fatal crashes, accounting for 72% of crash deaths in 2021. They are also more likely to be involved in accidents where speeding and alcohol use are contributing factors. As a result, males are considered a higher risk on the road, which is reflected in their insurance premiums.
It is worth noting that the impact of gender on insurance rates has been a subject of debate, with some states outlawing the use of gender as a rating factor altogether. Additionally, other factors such as credit score have been found to influence insurance rates, and the difference in credit scores between men and women has narrowed in recent years.
In the case of the Tesla Model 3, insurance rates are also influenced by other factors such as the driver's age, location, driving record, and the specific features and cost of the vehicle. The Model 3 is considered cheaper to insure compared to other Tesla models, with an average annual insurance cost of $2,221. However, the overall cost of insuring a Tesla is generally higher than that of a typical car due to the cost of repairs, parts, and labor, as well as the availability of repair facilities.
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The car's features
The Tesla Model 3 is a highly sought-after car, with its performance, range, and unmatched fast-charging network making it the best value in electric vehicles (EVs). However, insurance costs for the Model 3 can be high compared to similar cars, and there are several factors to consider when insuring this vehicle.
Firstly, the cost of repairs is a significant factor in the high insurance costs of the Model 3. The car's aluminium body and custom parts make it expensive to fix, even for minor accidents. Replacing the battery module alone could cost nearly $13,000. Additionally, Tesla's strict repair network requirements further increase repair costs, as only Tesla-approved body shops can undertake these specialised repairs.
Secondly, the Model 3's advanced technology and safety features impact insurance costs. The car's high-end tech contributes to higher replacement costs in the event of a crash. Moreover, Tesla's in-house insurance program, available in a limited number of states, uses real-time driving behaviour to determine insurance premiums. This means factors such as forward-collision warnings, hard braking, aggressive turning, speeding, and inattentive driving can influence your insurance rate.
Thirdly, the Model 3's popularity has made it a target for vandalism, which has resulted in higher insurance rates. There have been reports of Teslas being spray-painted, set on fire, and having windows shattered. These incidents have been attributed to protests against the company and its CEO, Elon Musk. As a result, insurance companies have warned of potential rate increases for Tesla owners.
Lastly, demographic factors play a role in determining insurance costs for the Model 3. Age, gender, driving record, location, and credit score can all influence the price of insurance. For example, drivers under 20 years of age tend to have significantly higher insurance rates, and insurance costs can vary depending on the state and city of residence.
In conclusion, while the Tesla Model 3 offers impressive features and performance, its insurance costs can be high due to repair expenses, advanced technology, vandalism risks, and demographic factors. It is essential for prospective owners to carefully consider these factors and compare insurance quotes to make an informed decision about insuring this desirable electric vehicle.
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The cost of repairs
Maintenance and repair costs for the Model 3 can vary depending on the specific issue and the age of the car. Some common repairs and their costs include:
- Replacing tyres: One owner reported spending a total of $2,395.60 on tyres over 90,000 miles, with individual tyre replacements ranging from $565.44 to $1,252.23.
- 4-wheel alignment: This repair was performed twice, costing around $280 in total.
- Replacing the rear aero shield: This repair cost around $427.13.
- Resealing the right front upper control arm ball joint: This repair, done to address squeaking, cost $49.
- Removing and replacing the Superbottle (battery and drive system cooling valve): This repair, done because the car wouldn't go over 50 mph, cost $672.75.
- Removing and replacing the PTC/cabin heater: This repair, done because the car wouldn't go into drive, cost $1,148.
Some owners have reported that maintenance costs for the Model 3 are higher than expected. One owner, who had driven over 90,000 miles, reported total costs of $5,441.42 for tyres and out-of-warranty repairs. Another owner, who had driven 160,000km, reported spending around $1,000 on servicing. However, it is important to note that these costs can vary depending on driving habits, the age of the car, and other factors.
When it comes to insurance rates, the Model 3 is considered one of the cheaper Teslas to insure. According to Forbes Advisor's analysis, the cheapest driver age to insure a Model 3 is 60 years old. The most expensive age group is 20 years old and under, with 20-year-old men paying significantly more than 20-year-old women. Insurance rates also vary by state, with Louisiana being the most expensive and Hawaii being the cheapest. Additionally, insurance companies use different criteria to determine rates, so it is important to shop around and compare quotes to find the best rate.
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Frequently asked questions
The insurance on the Model 3 is higher than the median national cost of car insurance. The cost of insurance depends on several factors, such as the driver's age, state, and driving record. For example, the average cost of insurance for a 40-year-old male driver with a clean record is $464 per year. However, the insurance on the Model 3 is cheaper compared to other Tesla models, such as the Model S and Model X.
The insurance cost of the Model 3 is affected by various factors, including the driver's age, driving record, state, and chosen coverage level. The age of the car also matters, as newer models tend to cost more to insure due to less depreciation.
The Model 3 is the second cheapest to insure when compared to similar cars such as the Jaguar I-Pace, Mercedes-Benz C-Class, and Volvo Polestar 2. The Model 3's insurance cost is nearly 30% higher than the median national cost of car insurance.
The Model 3 is cheaper to insure than the Model S and Model X but more expensive than the Model Y. The Model Y is the cheapest Tesla model to insure.
There are a few ways to get cheaper insurance on a Model 3. Firstly, compare quotes from different insurance companies, as rates can vary. Secondly, consider the state you live in, as some states have lower insurance costs for the Model 3. For example, Hawaii is the cheapest state, while Louisiana is the most expensive. Lastly, consider raising your deductible, as a higher deductible typically results in a lower premium.
