Car insurance for a Tesla Model 3 usually costs more than insurance for many gas cars, but it is still one of the cheapest Tesla models to insure. On average, Tesla Model 3 insurance in the USA costs between $2,200 and $3,400 per year for full coverage. Some drivers pay less, while others pay more, based on where they live, how they drive, and the coverage they choose.
The Tesla Model 3 is popular across the United States because it is safer, more affordable than other Tesla models, and cheaper to run over time. Even so, insurance companies see the Model 3 as a high tech car. It includes advanced safety systems, cameras, sensors, and a large battery pack. These parts cost more to repair than parts on most gas vehicles. Because of this, insurance companies charge higher premiums.
Your location matters a lot. A Tesla Model 3 owner in a rural area may pay much less than a driver in a busy city like Los Angeles, New York, or Miami. Age, driving record, annual mileage, and deductible also affect the final price. Drivers with clean records and low mileage often get the best rates.
Many Model 3 owners choose full coverage because the car has a higher value than most sedans. If you lease or finance your Tesla, full coverage is required by the lender. Liability only coverage costs less, but it does not protect your vehicle from theft, vandalism, or accidents.
Average Cost of Tesla Model 3 Insurance in the USA
The Tesla Model 3 is the cheapest Tesla to insure in most states.
Average Annual and Monthly Cost
| Coverage Type | Annual Cost | Monthly Cost |
| Liability Only | $1,100 to $1,600 | $90 to $135 |
| Full Coverage | $2,200 to $3,400 | $185 to $285 |
| High Limits Full Coverage | $3,800 and above | $315 and above |
Most drivers choose full coverage because of repair costs and vehicle value.
Why Tesla Model 3 Insurance Costs More Than Gas Cars
Even though the Model 3 is affordable compared to other Tesla vehicles, it still costs more to insure than many gas sedans.
Key Reasons
- Expensive battery and electronic parts
- Limited repair shops in some areas
- Advanced cameras and sensors
- Higher replacement value
- Costly labor for repairs
A small accident can result in a high repair bill. Insurance companies price this risk into your premium.
Tesla Model 3 Insurance Cost by State
Your state has a big impact on what you pay.
Average Tesla Model 3 Insurance Cost by State
| State | Average Annual Cost |
| California | $2,800 to $3,600 |
| Texas | $2,400 to $3,200 |
| Florida | $2,600 to $3,500 |
| New York | $3,000 to $4,000 |
| Illinois | $2,300 to $3,100 |
| Ohio | $2,100 to $2,800 |
| Arizona | $2,200 to $3,000 |
| Georgia | $2,500 to $3,400 |
States with higher accident rates and repair costs charge more.
Tesla Model 3 Insurance Cost by City
City traffic and theft risk matter.
Average Cost in Major Cities
| City | Average Annual Cost |
| Los Angeles | $3,500 to $4,200 |
| San Francisco | $3,200 to $4,000 |
| New York City | $3,800 to $4,800 |
| Chicago | $3,100 to $3,900 |
| Dallas | $2,600 to $3,400 |
| Phoenix | $2,300 to $3,100 |
Urban areas increase risk and cost.
How Your Driving Record Affects Tesla Model 3 Insurance
Your driving history is one of the biggest price factors.
Clean Record
Drivers with no tickets or claims pay the lowest rates.
One Accident or Ticket
Rates may rise by 20 to 40 percent.
DUI or Multiple Violations
Rates can double or more.
Insurance companies reward safe drivers.
Tesla Model 3 Insurance for Young Drivers
Young drivers pay much more to insure a Tesla Model 3.
Average Cost by Age
| Age | Average Annual Cost |
| 16 to 18 | $6,000 to $8,000 |
| 19 to 21 | $4,800 to $6,500 |
| 22 to 24 | $3,500 to $4,800 |
| 25 and older | $2,200 to $3,400 |
Adding a teen to your policy increases rates sharply.
Tesla Model 3 Insurance for Seniors
Older drivers often get better rates.
Why Seniors Pay Less
- More driving experience
- Lower annual mileage
- Fewer risky driving behaviors
However, accident history still matters.
Full Coverage vs Liability Only for Tesla Model 3
Choosing the right coverage matters.
Full Coverage
- Covers theft and vandalism
- Covers collision damage
- Covers weather damage
- Required for financed vehicles
Liability Only
- Covers damage to others
- No protection for your Tesla
- Risky for a high value car
Most Tesla Model 3 owners choose full coverage.
How Much Is Tesla Model 3 Insurance Per Month?
Most drivers want to know the monthly cost.
Monthly Cost Breakdown
- Low risk driver: $180 to $220
- Average driver: $220 to $280
- High risk driver: $300 and above
Monthly costs vary widely by driver profile.
Is Tesla Model 3 Insurance Cheaper Than Other Tesla Models?
Yes. The Model 3 is the cheapest Tesla to insure.
Tesla Insurance Comparison
| Tesla Model | Average Annual Cost |
| Model 3 | $2,200 to $3,400 |
| Model Y | $2,600 to $3,700 |
| Model S | $3,500 to $4,800 |
| Model X | $3,800 to $5,200 |
Lower repair and replacement costs help keep Model 3 insurance lower.
Tesla Model 3 Safety Features and Insurance
The Model 3 includes many safety features.
Key Safety Features
- Automatic emergency braking
- Lane assist
- Forward collision warning
- Strong crash test ratings
These features help reduce accidents and claims. Insurers may offer small discounts for safety.
Does Tesla Insurance Cost Less for the Model 3?
Tesla offers its own insurance in some states.
Pros
- Uses real driving behavior
- Can be cheaper for safe drivers
- Easy to manage in the app
Cons
- Rates can change monthly
- Limited customer service
- Not available everywhere
Some Model 3 owners save money with Tesla Insurance.
How Mileage Affects Tesla Model 3 Insurance
Driving fewer miles helps lower rates.
Why Mileage Matters
- Fewer miles means lower risk
- Lower chance of accidents
- Lower claim frequency
Usage based insurance works well for low mileage drivers.
Common Tesla Model 3 Insurance Discounts
Many drivers miss out on savings.
Popular Discounts
- Safe driver discount
- Multi policy discount
- Low mileage discount
- Anti theft discount
- Defensive driving course
Asking for discounts can save hundreds each year.
How Much Does It Cost to Repair a Tesla Model 3?
Repair costs affect insurance pricing.
Common Repair Costs
| Repair Type | Average Cost |
| Bumper repair | $1,500 to $3,000 |
| Sensor replacement | $1,000 and above |
| Battery repair | $5,000 and above |
| Windshield replacement | $1,200 to $1,800 |
High repair costs increase insurance rates.
Tesla Model 3 Insurance vs Hybrid and Electric Cars
The Model 3 costs more than some EVs to insure.
Comparison
| Vehicle | Average Annual Cost |
| Tesla Model 3 | $2,800 |
| Nissan Leaf | $1,500 |
| Chevy Bolt | $1,600 |
| Hyundai Ioniq | $1,700 |
Tesla parts and labor cost more.
Best Ways to Lower Tesla Model 3 Insurance Cost
You can take steps to reduce your premium.
Smart Tips
- Increase your deductible
- Drive fewer miles
- Bundle home and auto
- Compare quotes yearly
- Maintain a clean record
Small changes add up to big savings.
Is Tesla Model 3 Insurance Worth the Cost?
The Model 3 costs more to insure, but it offers safety, performance, and lower fuel costs. Many owners feel the total cost of ownership balances out.
Frequently Asked Questions (FAQs)
Most drivers pay between $185 and $285 per month for full coverage.
It costs more than gas sedans but less than other Tesla models.
Yes, but it is risky due to the high value of the car.
Yes, but it does not protect your car from damage or theft.
Yes, if you maintain a clean driving record and reduce mileage.
Final Thoughts
Tesla Model 3 insurance costs more than many gas cars, but it is the most affordable Tesla model to insure. Rates depend on your state, driving history, mileage, and coverage choices. Comparing quotes and using discounts can lower your cost. At Alias Insurance, we help drivers across the USA compare Tesla Model 3 insurance quotes from top providers so they can find strong coverage at a fair price.
