Car insurance for a Tesla Model Y costs more than average, but the price is not the same for everyone. In the United States, most drivers pay between $2,200 and $3,200 per year for full coverage on a Tesla Model Y. That comes to about $185 to $270 per month. Liability only coverage is cheaper and often falls between $900 and $1,400 per year, depending on the driver and location.
So why is Tesla Model Y insurance higher than many gas cars? The main reasons are repair costs, advanced technology, and higher vehicle value. The Model Y has expensive parts, advanced sensors, and cameras that cost more to fix after an accident. Even small repairs can raise claim costs. Insurance companies factor this into pricing.
That said, many Tesla Model Y owners still find affordable rates. Your age, driving record, credit score, state, and coverage level matter more than the car alone. Drivers with clean records in low risk states often pay much less than the national average. Some owners also save money by choosing higher deductibles or using usage based programs.
This guide breaks everything down in simple terms. You will learn the average Tesla Model Y insurance cost, how prices change by state and driver profile, and how Model Y compares to Model 3 and other SUVs. We also share real tips to lower your premium without cutting coverage.
Average Cost of Tesla Model Y Insurance in the USA
Most insurance companies treat the Tesla Model Y as a premium electric SUV. That places it above average sedans and compact SUVs in insurance cost.
National Average Costs
| Coverage Type | Average Annual Cost | Average Monthly Cost |
| Full coverage | $2,200 to $3,200 | $185 to $270 |
| Liability only | $900 to $1,400 | $75 to $115 |
These numbers are based on national insurance rate data and EV specific claim trends.
Why Full Coverage Costs More
Most lenders require full coverage if the car is financed or leased. Full coverage includes liability, collision, and comprehensive protection. Since the Tesla Model Y has a high repair value, collision and comprehensive costs drive prices up.
What Affects Tesla Model Y Insurance Rates?
Insurance companies do not use one fixed price. They calculate risk based on many factors.
Vehicle Related Factors
- High repair and parts cost
- Advanced cameras and sensors
- Aluminum body panels
- Battery replacement cost
- Limited repair shops in some areas
Driver Related Factors
- Age and driving experience
- Accident and ticket history
- Credit based insurance score
- Annual mileage
Location Based Factors
- State insurance laws
- Weather risks
- Theft rates
- Traffic density
Tesla Model Y Insurance Cost by State
Your state plays a big role in what you pay.
Average Full Coverage Cost by State
| State | Estimated Annual Cost |
| California | $2,600 to $3,400 |
| Texas | $2,300 to $3,100 |
| Florida | $2,800 to $3,600 |
| New York | $2,900 to $3,700 |
| Ohio | $1,900 to $2,500 |
| Arizona | $2,100 to $2,800 |
States with high accident rates and repair costs usually have higher premiums.
Tesla Model Y Insurance Cost by Driver Age
Age matters more than many people think.
Estimated Full Coverage Cost by Age
| Age Group | Annual Cost Range |
| 18 to 24 | $4,000 to $5,500 |
| 25 to 34 | $2,600 to $3,400 |
| 35 to 50 | $2,100 to $2,800 |
| 50 plus | $1,900 to $2,500 |
Young drivers pay more due to higher risk. Rates drop as experience grows.
Tesla Model Y Insurance vs Other Tesla Models
Many buyers compare Model Y insurance to other Tesla vehicles.
| Tesla Model | Average Annual Cost |
| Model 3 | $1,900 to $2,700 |
| Model Y | $2,200 to $3,200 |
| Model S | $3,200 to $4,500 |
| Model X | $3,400 to $4,800 |
The Model Y costs more than the Model 3 due to size and repair expense but less than luxury Tesla models.
Is Tesla Insurance Cheaper for the Model Y?
Tesla offers its own insurance in some states. Rates are often competitive, but they change based on driving behavior.
Pros of Tesla Insurance
- Designed for Tesla vehicles
- Uses real time driving data
- Often cheaper for safe drivers
Cons of Tesla Insurance
- Limited availability
- Prices can change monthly
- Fewer add on options
Drivers who prefer stable monthly payments may choose traditional insurers instead.
Does the Battery Increase Insurance Cost?
Yes, but not always in the way people expect.
The battery is expensive, but insurance covers damage only in major accidents. Minor claims usually do not involve battery replacement. However, insurers still price risk higher because of potential loss severity.
How Much Does Tesla Model Y Insurance Cost for Full Coverage?
Most Model Y owners choose full coverage.
Typical Full Coverage Includes
- Bodily injury liability
- Property damage liability
- Collision coverage
- Comprehensive coverage
- Uninsured motorist
Average cost remains between $185 and $270 per month for most drivers.
How Much Is Liability Only Insurance for a Tesla Model Y?
Liability only coverage is cheaper but risky for a high value vehicle.
Average Cost
- $75 to $115 per month
This option does not cover your car damage. It works best for paid off vehicles with low resale value, which is rare for Model Y owners.
How Repair Costs Impact Tesla Model Y Insurance
Tesla repairs cost more due to parts, labor, and calibration needs.
Common Repair Costs
- Bumper repair with sensors: $2,500 plus
- Camera calibration: $1,000 plus
- Door panel replacement: $3,000 plus
Higher repair costs lead to higher insurance premiums.
Can You Lower Tesla Model Y Insurance Costs?
Yes. Many drivers save hundreds each year.
Proven Ways to Save
- Compare quotes from multiple insurers
- Raise your deductible if affordable
- Bundle auto and home insurance
- Drive fewer miles per year
- Keep a clean driving record
- Ask about EV discounts
Is Tesla Model Y Insurance Higher Than Gas SUVs?
Yes in most cases.
Comparison Example
| Vehicle | Average Annual Cost |
| Toyota RAV4 | $1,600 to $2,200 |
| Honda CR V | $1,500 to $2,100 |
| Tesla Model Y | $2,200 to $3,200 |
Higher tech means higher risk for insurers.
Tesla Model Y Insurance for Leased Vehicles
Leased Teslas require full coverage and often gap protection.
Why Gap Coverage Matters
If the car is totaled, gap coverage pays the difference between loan balance and market value. Tesla vehicles depreciate differently, so gap coverage offers peace of mind.
Is Tesla Model Y Insurance Worth the Cost?
For most owners, yes. Insurance protects a valuable vehicle with advanced safety systems. The Model Y also scores well in safety tests, which helps reduce injury claims.
Frequently Asked Questions About Tesla Model Y Insurance
Yes, compared to average SUVs. However, rates vary widely by driver and state.
It can be safe for drivers, but pricing changes based on driving behavior.
Yes. Performance trims cost more due to higher speed and repair risk.
No. Charging habits do not impact insurance pricing.
Some insurers offer EV or green vehicle discounts.
Final Thoughts
Tesla Model Y insurance costs more than average, but smart choices make a big difference. Comparing providers, choosing the right coverage, and keeping a clean driving record help control costs. Many drivers overpay simply because they never shop around. At Alias Insurance, we help Tesla owners across the USA compare rates from top insurers and find coverage that fits their budget without stress.
