Cost of Tesla Model Y car insurance – Forbes Advisor
Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.
Tesla Model Y car insurance at a glance:
- Average auto insurance premium for a 30-year-old driver: $2,648
- Most Affordable Insurance Companies for Tesla Model Y Insurance: Nationwide, USAA, and Erie
- Cheapest state for Model Y insurance: Vermont
- Most Expensive State for Model Y Insurance: California
The Forbes Wheels team says the Tesla Model Y is an all-electric compact crossover with a robust suite of advanced driving and entertainment technologies. Unfortunately, Model Y is not eligible for federal tax credits. But you may be able to save money when you take out a car insurance policy. Here we take a look at the average insurance costs for a Tesla Model Y.
Tesla Model Y Insurance Costs by Company
Tesla Model Y owners can potentially save hundreds of dollars a year by comparing car insurance quotes from multiple insurers. Of the major insurance companies we analyzed, Nationwide offers the cheapest car insurance for a Tesla Model Y. The second cheapest in our analysis was USAA. If you don’t qualify for USAA auto insurance as a military veteran, veteran, or family member, try Erie and State Farm quotes.
Additionally, Tesla Insurance is available directly from Tesla.
Related: The best car insurance companies
Tesla Model Y Insurance Costs by State
State variations in Tesla Model Y insurance costs are usually due to past claims, medical expenses, repair costs, state regulations, etc. California is the most expensive state for Tesla Model Y car insurance ($4,244 per year). Vermont is the least expensive ($1,616 per year).
Cost of insurance for a Tesla Model Y according to the age of the driver
The cheapest age to insure a Tesla Model Y is 60, according to a Forbes Advisor analysis of rates.
Women and men between the ages of 30 and 70 pay about the same amount to insure a Tesla Model Y. For example, 40-year-old women pay only $12 less per year than 40-year-old men.
The most expensive age to insure a Tesla Model Y is 20 and under. Gender is also a cost factor for young drivers. A 20-year-old female driver can pay nearly $800 less per year to insure a Model Y compared to a 20-year-old male.
There are several factors that go into determining your car insurance rate. These include your driving record, garage address (where you keep the car), annual mileage, credit-based insurance score (low credit risks pay more), past claims, type car, any recent failure of car insurance coverage and the type and amount of insurance coverage selected.
Related: 9 Factors That Affect Your Car Insurance Rates
Tesla Model Y insurance vs similar cars
If you’re considering buying a Tesla Model Y, you might also consider an Audi e-tron, Ford Mustang Mach-E, or Volvo XC40 Recharge. Among these models, the Tesla Model Y is on average the most expensive to insure.
Related: Most and least expensive green cars to insure
How to Save Money on Tesla Model Y Car Insurance
There are several ways to reduce car insurance costs, such as:
- Compare quotes. Not all insurers charge a policy for a Model Y the same way. The best way to find a good price is to compare car insurance quotes from several different companies.
- Buy the right amount of car insurance. While you want to make sure you’re adequately insured, you also don’t want to pay too much for insurance you don’t need. Here’s a guide to determining how much car insurance you need.
- Get rewarded for safe driving. Most insurance companies have a usage-based insurance program that tracks and rates your safe driving habits like phone use, speeding and hard braking. If you prove you are a safe driver, you can get a discount.
- Maintain good credit. Insurers in 46 states can use your credit-based insurance score as a pricing factor. But not all insurers weigh this factor equally, which is why comparing quotes is crucial.
- Increase your deductible. Generally, the higher your auto insurance deductible, the lower your premiums. Common deductible amounts range from $100 to $1,000 (and more).
- Ask for discounts. You may be eligible for car insurance discounts such as safe driver discounts, student voucher discounts, multi-car and multi-policy discounts, and full payment discounts.
Related: Test of the Tesla Model Y
Best car insurance companies 2022
With so many choices for car insurance companies, it can be difficult to know where to start to find the right car insurance. We’ve rated insurers to find the best car insurance companies, so you don’t have to.
Rates are based on drivers with clean records with $100,000 bodily injury liability per person, $300,000 per accident and $100,000 property damage liability, uninsured motorist coverage and any other coverage required in a state. The rate also includes collision and comprehensive coverage with a $500 deductible. Rates are from Quadrant Information Services as of June 2022.