Tesla offers state-specific discounts for car insurance policyholders in the 12 states where Tesla Insurance operates. These discounts aim to lower insurance costs by utilizing safety features, multi-car policies, and defensive driving courses.
Tesla Insurance offers full coverage options with various limits and deductibles that can be tailored to your needs. In some cases, companye also offer additional insurance coverages and discounts. Coverages may differ by state.
The news follows on from a turbulent year that has seen a rise in GWP, a partnership with Zurich, legal disputes over insurance customer services and claims – and the recall of cyber trucks.
Tesla’s insurance premiums surged by 116% in 2023 compared to 2022. In 2024, insurance premiums jumped by 24%.
17% of Tesla customers in states where insurance is available have signed up for Tesla Insurance. This figure continues to tick up as the company spends more time in markets, according to Tesla Insurance results.
The top three states by premium volume, where Tesla writes on State National paper, are California, Ohio, and Arizona, with $387 mn in premiums in 2023, up from $218 mn in 2022.
On its own paper, the top three states are Texas, Virginia, and Maryland (see US Auto Insurance Rates by States in 2024).
The standout Tesla Insurance discounts
- Multi-Car Discount: Available in all states, this discount is automatically applied when more than one vehicle is insured under the same policy with Tesla Insurance.
- Defensive Driving Course Discount: Offered in several states (e.g., Colorado, Illinois, Minnesota, Nevada, Oregon, Utah, Virginia), typically for drivers over 55 who have completed an approved accident prevention course.
- Group Discount: Available to Tesla employees across multiple states, this discount requires contacting Tesla Insurance to apply.
- Anti-Theft Device Discount: Available in Illinois and Minnesota, this discount applies to vehicles equipped with approved anti-theft devices.
- Autopilot Discount: Available in Nevada, this discount is automatically applied to Tesla vehicles with qualifying autonomous features. Those with non-Tesla cars can contact Tesla to see if their other vehicle qualifies for this discount.
These discounts emphasize the benefits of safety courses, multi-car policies, and specific vehicle features in reducing insurance costs.
Tesla Insurance is available in the following states:
- Arizona
- California*
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
*Tesla Real-Time Insurance is not available in California.
Tesla’s insurance division has seen significant growth, ending the fiscal year with $500 mn in written premiums, marking a remarkable 115% year-over-year increase.
In April, Tesla recalled 3,878 Cybertrucks to address a faulty accelerator pedal pad that could become loose and become trapped in the interior trim, according to a statement from the U.S. National Highway Traffic Safety Administration.
NHTSA warned that a trapped accelerator pedal could lead to unintended vehicle acceleration, increasing the risk of a crash.
Zurich Australia has announced a new partnership with Tesla to become the preferred electric vehicle insurer for Tesla customers in Australia.
Under this agreement, existing and new Tesla owners can access the “InsureMyTesla” EV offering, exclusively provided by Zurich using its “Edge” technology, directly within the Tesla app.
The “InsureMyTesla” coverage includes all vehicle repairs, including glass, charging equipment, and batteries, using Tesla’s accredited repair network. The offering is available to all Tesla Model 3 and Model Y customers through the Tesla app.
EV uptake in Australia is rapidly growing as consumers continue to recognise the importance of lowering their environmental impact. Ensuring these customers receive quality insurance protection is critical for supporting the national transition journey.
Justin Delaney, CEO of Zurich Australia and New Zealand
“Zurich and Tesla share a common pursuit to drive a more sustainable future, invest in cutting-edge technology, and provide leading products and services to a loyal customer base. With shared global strength paired with deep local expertise, this is a natural alignment that will benefit many Australians on our roads,” Justin Delaney said.
As the preferred provider for InsureMyTesla, Zurich offers Tesla customers affordable and convenient insurance, all accessible within the Tesla app. With InsureMyTesla, Tesla ownership becomes even more secure, giving more policyholders the confidence to switch to electric vehicles.
Tesla Insurance Coverage Types
Tesla Insurance is known for its telematics-based car insurance, meaning that real-time driving behavior plays an integral role in calculating car insurance rates.
For this reason, Tesla Insurance may be a natural fit for drivers who want to have a direct influence on their car insurance, as the carrier does not use traditional car insurance rating factors like age, gender, claim history and driving record.
Instead, Tesla Insurance calculates a monthly Safety Score that grades five factors when you drive: hard braking, aggressive turning, unsafe following distance, forced autopilot disengagement and forward collision warnings.
Vehicle Coverage
- Collision – Covers repair or replacement of your covered vehicle for collision-related vehicle damage
- Comprehensive – Pays for covered damage to your covered vehicle caused by anything other than a collision, such as fire, theft, hailstorm, etc.
- Rental – Covers reimbursements for expenses incurred to rent a substitute vehicle if the covered vehicle is unavailable due to accident
- Roadside Assistance – Covers towing services in case of an accident and emergency roadside services
Liability Coverage
- Bodily Injury – Covers medical expenses and lost wages for another person if the policyholder or covered driver is found at-fault
- Property Damage – Covers repairs or replacement of another person’s damaged vehicle and other property (e.g., garage, fence, etc.) if the policyholder or covered driver is found at-fault
- Uninsured/Underinsured Motorist – Covers the policy holder and covered drivers for injuries and property damage caused by another driver who is at-fault with insufficient or no insurance
Medical Coverage
- Medical Payment – Offered in some states and covers accident-related medical expenses for the policyholder and covered drivers and their respective passengers, irrespective of fault
- Personal Injury Protection – Offered in some states and protects you in a similar way as Medical Payment, but with additional benefits like reimbursement of lost wages, irrespective of fault
by Yana Keller
