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Tesla insurance costs

Teslas are more expensive to insure than a petrol car but the model you get can also make a big difference.

Key statistics

  • A Tesla Model 3 comprehensive car insurance policy costs $3,500 on average – nearly $300 a month.
  • A Tesla Model Y comprehensive car insurance policy costs $3,900 on average – about $325 a month.
  • A Tesla Model S comprehensive car insurance policy costs $5,500 on average – almost $460 a month.
  • A Tesla Model X comprehensive car insurance policy costs $6,825 on average – over $560 a month.
  • Insurance costs for the most popular Tesla, Model Y is 193% higher than a traditional petrol car.
  • Out of 16 car insurers, 4 did not cover Tesla Models 3, Y and X. 7 did not cover Model S.

How much does it cost to insure a Tesla in Australia?

We applied for quotes from 16 popular car insurers including AAMI, Budget Direct and NRMA. All were for comprehensive car insurance policies. 4 insurers didn't insure Teslas at all and an additional 3 didn't insure the Model S. Keep in mind that prices will differ based on your driving profile – for example, your age, driving history and where you live.

Tesla Model 3. Average insurance costs for the Tesla Model 3 were $3,500. This is 157% higher than the average annual premium for a Toyota Corolla, according to our Finder Awards.

Tesla Model Y. Average insurance costs for the Tesla Model Y were $3,900. This is 193% higher than the average annual premium.

Tesla Model S. Average insurance costs for the Tesla Model S were $5,500. This is 304% higher than the average annual premium.

Tesla Model X. Average insurance costs for the Tesla Model X were $6,825. This is 401% higher than the average annual premium.

Average cost of car insurance for a Tesla

Tesla model Car insurance cost
Model 3$3,500
Model Y$3,900
Model S$5,500
Model X$6,825

Why is a Tesla so expensive to insure?

There are a few reasons that Teslas cost more to insure than a regular car. These include:

  • The parts are more expensive to produce and replace
  • Some parts need be imported to Australia
  • Regular mechanics might not be able to repair Teslas – they will need to go to a specialist
  • Repairing and replacing damaged electric vehicle batteries is costly and time-consuming
  • Some models like Model S and Model X have been discontinued in Australia
Sarah Megginson

For the first 4 years, a few things were covered under warranty – like the knobs on our steering wheel wore down and were replaced for free. But for general repairs, it's pricier. When driving on the freeway a rock flicked up and caused a 4-inch crack in the rooftop glass – the quote was $1400 to replace it. You definitely need to budget a little more for repairs.
— Sarah Megginson, Head of editorial, Australia & Tesla owner

What might impact my Tesla insurance costs?

  • Your age, gender and driving history. The younger you are, the more expensive insurance tends to cost. Males also typically pay more, as do people with demerit points.
  • Your home address. You will pay more if you live in a suburb with a higher crime rate or flood-prone location. It will also make a difference where you park your Tesla at night – outside on the street, a driveway or inside a locked garage.
  • The model of your Tesla. More expensive or rare Tesla models tend to cost more to insure.
  • Level of cover. You can choose from three levels of cover: comprehensive, third party property and theft, or third party property only. Comprehensive cover is the most expensive because it's the only policy that covers damage to your Tesla as well as other cars.

Fuel efficiency standards

The Australian government plans to introduce a New Vehicle Efficiency Standard (NVES) by 2025. This would place a cap on the emissions output for new cars sold in Australia to incentivise carmakers to supply low and zero emissions vehicles. It could save you up to $1,000 in fuel and $17,000 over the life of the vehicle.

Compare car insurance for a Tesla

Name Product Roadside assistance Accidental damage Agreed or market value
Budget Direct Comprehensive
Optional
Agreed or Market
Finder's summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
Youi Comprehensive
Agreed or Market
Finder's summary: The 2023 winner of our Best Features Car Insurance award. Plus, it's one of the only insurers to automatically include roadside assistance.

Who it might be good for: Those who want good customer service with lots of inclusions.
Australia Post Comprehensive
Agreed or Market
Finder's summary: Covers a little more than other insurers. You don’t need to pay an excess for windscreen repairs and cover applies to anyone who uses your car.

⭐ Current offer: Get $100 off your first year's comprehensive car insurance premium when you buy online. T&Cs apply.

Who it might be good for: Multiple people using one car.
ROLLiN' Comprehensive
Agreed
Finder's summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.
Qantas Comprehensive
Optional
Agreed or Market
Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct).

⭐ Current offer: Earn up to 30,000 Qantas Points with every Qantas Car Insurance policy you take out by 28 May. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
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