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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's headshot

"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."

Head of editorial

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

Product FCI Roadside assistance Accidental damage Agreed or market value
Youi Comprehensive
Finder Award
Youi Comprehensive
Agreed or Market
Summary: One of the only insurers to automatically include roadside assistance. It also won 12 out of the 22 categories in Finder's 2024 customer satisfaction awards.

Winner of 12 out of the 22 categories in Finder's 2024 customer satisfaction awards. Yes, that many.
Budget Direct Comprehensive
Finder Award
Budget Direct Comprehensive
Optional
Agreed or Market
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.
ALDI Comprehensive
ALDI Comprehensive
Agreed
Summary: ALDI's comprehensive insurance policy covers your car for an agreed value and a variety of policy benefits.

Who it might be good for: Ideal for those seeking competitive coverage limits, though other products may have higher limits.
QBE Comprehensive
Green Company
QBE Comprehensive
Agreed or Market
Summary: Finder's best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
ROLLiN' Comprehensive
ROLLiN' Comprehensive
Agreed
Summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

⭐ Current offer: Get 10% off the base premium for the first 2 consecutive monthly policies and up to a 15% potential monthly discount from your 3rd month for being a safer driver. Minimum premiums may apply. Underwriting criteria, limits, exclusions, and T&Cs apply.

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
Qantas Comprehensive
Optional
Agreed or Market
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 40,000 Qantas Points with every car insured by 29 January. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply.

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

Gary Ross Hunter's headshot
Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise
Gary Ross has written 659 Finder guides across topics including:
  • Health, home, life, car, pet and travel insurance
  • Managing the cost of living

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