Tesla Car Insurance: Here's Why It's More Expensive Than Other Cars

Why Is Insurance For Tesla So Expensive?

When you buy a Tesla, you get a vehicle with a powerful battery pack that can go 400 miles on a single charge and a National Highway Traffic Safety Administration (NHTSA) safety rating of 5 stars. In addition, the battery pack comes with an eight-year/100,000-mile guarantee, so you'll be covered in the case of a problem.

Planning a budget for a new Tesla requires some forethought. However, even if the lowest Tesla model costs less than half as much as the most costly versions, it is still more expensive than other EVs – and there are many additional costs to consider, such as the cost of vehicle insurance.

Although purchasing an electric car can save you money over time, it is common knowledge that electric cars generally have higher insurance premiums. It is also common knowledge that Teslas have higher insurance premiums than different types of electric vehicles. This is partly because of external variables beyond your control, such as Teslas being regarded as high-end luxury cars. Nevertheless, you can still do certain things to bring down the cost of your insurance rates.

Why does Tesla have such expensive insurance? There are a few reasons that have contributed to this:

1. Tesla Vehicles Are Expensive to Buy and Repair

Tesla Vehicles Are Expensive to Buy and Repair

To begin with, Teslas are pricey, which means they're more expensive to insure than a more affordable vehicle. To insure these vehicles, insurance companies will consider them to be both more expensive and so more likely to be stolen. So, accident coverage costs for Teslas are exceptionally high because of their high maintenance and repair expenses, which are more than for other luxury cars or electric vehicles.

The price of a Tesla Model 3 begins at slightly over $45,000, while the price of a Tesla Model Y is around $65,000, and the price of a Tesla Model X may be at least $120,000. Adding more features to your car, such as the Full Self-Driving Capability, might cause your vehicle's value to climb even further, which will drive up the cost of your insurance.

So, it's only reasonable that electric cars like the Nissan LEAF, which cost less than $30,000, have lower insurance premiums than Tesla. Some other high-end electric vehicles like the Porsche Taycan are similarly costly to Tesla to insure.

2. Teslas Use Specialized Parts

Teslas Use Specialized Parts

Even while electric vehicles may have lower operating costs than traditional automobiles, this does not always follow that they have lower repair costs in the event of a collision. It may be costly to replace the battery pack or the driver assist technology if any of these components are damaged. Because they include more expensive equipment and technology, electric vehicles have higher repair and insurance costs than conventional automobiles.

Teslas have higher battery life than other electric vehicles, so they often rack up more kilometers. The greater the time spent going, the higher the accident risk. If you get into a collision, your auto insurance carrier will be responsible for covering the greater repair costs associated with Tesla automobiles, particularly because of the unique components.

Even though generic aftermarket parts may be used to fix many automobiles, Tesla parts are more challenging to come by and consequently more expensive. For instance, some Teslas are made using aluminum frames instead of the steel frames used in most automobiles. The aluminum frame of the Model S is more costly and harder to maintain than the steel frame.

3. Teslas Are Serviced By Certified Mechanics

Teslas Are Serviced By Certified Mechanics

In addition to the higher costs associated with specialist components, Teslas may only be fixed at body repair facilities certified by Tesla. The expense of being certified will be much greater due to the equipment and training required. Tesla maintains its own network of Tesla Service Centers and Tesla-Approved Collision Centers, which can perform cosmetic repairs on Tesla vehicles.

4. Other Aspects That Impact the Cost of Car Insurance

Other Aspects That Impact the Cost of Car Insurance

Your Location

It's necessary to acquire an exact quote for the price of auto insurance where you live because insurance prices differ from state to state. Even if you have no immediate plans to relocate, the choice between parking your car on the street or in a garage can affect your cost of insurance.

Your Driving Background

Your driving history is taken into consideration by car insurance providers when computing your rate. Regardless of the type of vehicle you drive, inexperienced and risky drivers always pay extra. By taking a defensive driving course or joining a safe driver program, you might be able to get your insurance rates reduced.

The Extent of Your Coverage

Your car insurance prices could significantly be affected by the amount of insurance protection you require. Your lender will likely need you to keep full coverage until your debt is repaid if you're leasing or financing your car. You might have more options if you own the vehicle, such as having a policy with a greater deductible or deciding to forego full coverage as the automobile ages.

Conclusion

Teslas are expensive to insure, because they're expensive to buy and repair. Plus, their high repair costs make them more expensive than many other luxury cars, which raises the cost of accident coverage.

Because of all these, the cost to repair a Tesla may quickly approach several thousand dollars, even for a simple accident like a fender bender. The autopilot technology that is incorporated into Tesla vehicles aims to reduce the number of accidents that occur, but the price of a Tesla takes into account the expense of replacing all of the high-end equipment in the event of an accident. The cost of each accident may continue to climb as automobiles get more technologically advanced and include more specialized components.