With the Model Y becoming more popular, Tesla insurance costs have dropped. That’s great for existing and new owners. Here’s the full Model Y price history. As a result, you can find better rates with major providers such as Geico, State Farm, Progressive, Allstate, and others. And if you can get insurance directly from Tesla, that might be the cheapest option if you’re a good driver.
I’ll show you exactly how much I’ve paid for Tesla insurance on my Model Y. Rates have changed a few times, and I’ll show you average Model Y insurance costs to compare.
How Much is Tesla Insurance a Month?
Here’s my review of Tesla insurance costs and tips to find the best policy.
I bought a new long range Model Y at the start of 2023. My monthly insurance was $139.57, or $1,675 a year. And since, it’s changed four times.
In July 2023, it bumped up to $155.43 a month, or $1,865 a year. Then at the start of 2024 (January), it bumped down to $151.13, or $1,814 annually. Then came another jump in July 2024 to $165.26, and that’s $1,983 a year.
Then for one more surprising twist, it dropped to $142.98 in February 2025, or $1,716…
| Date | Monthly Cost | Annual Cost |
| Feb. 2023 | $139.57 | $1,675 |
| July 2023 | $155.43 | $1,865 |
| Jan. 2024 | $151.13 | $1,814 |
| July 2024 | $165.26 | $1,983 |
| Feb. 2025 | $142.98 | $1,716 |
Over this entire stretch, I didn’t have any accidents or make any claims. I also didn’t move, with my homebase set in South Dakota. Although, I drove all over the U.S.
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The cost of my Tesla Model Y insurance might seem cheap, especially for an around 30-year-old male driver.
There are many factors, and location is a big one. If you’re paying for Tesla insurance, please share your cost in the comments on the video. Because that helps us all out, whether you’re a current Tesla owner or potential buyer. Either way, here are some rough averages to help you compare.
Average Tesla Insurance Costs
Here are average insurance costs, but keep in mind that these change a lot based on many factors. The same provider could offer wildly different rates in areas areas.
| Insurance Provider | Monthly Cost | Annual Cost |
| The General | $353 | $4,230 |
| Travelers | $287 | $3,440 |
| Progressive | $290 | $3,480 |
| GEICO | $233 | $2,790 |
| State Farm | $234 | $2,810 |
| Allstate | $250 | $3,000 |
| American Family | $294 | $3,530 |
| Nationwide | $335 | $4,020 |
| CSAA | $210 | $2,520 |
| USAA | $197 | $2,360 |
These rates are for a Model Y. If you’re looks for Model 3 insurance, the policies should be cheaper. And to find the best Tesla insurance, here are some useful tips.
Cheapest Tesla Insurance 3 Tips
1. Get Multiple Quotes
It’s good to shop around and get multiple quotes. Even if you don’t change cars or move States, insurance companies can drastically change your premiums and policies. I got ripped off by State Farm when I lived in Maryland. I switched to Geico. But now in South Dakota, State Farm offered the best rates for my Tesla Model Y.
2. Call Insurance Providers Directly
Avoid third-party companies and insurance quote aggregators. They can collect commissions or sell your info to insurance agents. Cut out these middlemen and go straight to the source. You’ll get far fewer annoying sales calls.
And a side note, be wary of insurance bundling. It might make sense, but often it just adds to your overall cost.
3. Check if Your State Allows Tesla Insurance
At the time of filming, Tesla directly offers car insurance in 12 states. Tesla is breaking down barriers in both direct auto sales and insurance. Tesla has some of the best data on its drivers, fleet and services. If you have good driving habits, this might be the lowest cost Tesla insurance. It doesn’t hurt to reach out for a quote.
Tesla Tips, Resources and Accessories
Congrats on your Tesla or planning in advance to buy one. I’ve had great luck with my new Model Y and have driven over 40,000 miles. I even lived in it for a year traveling all over the States. To say the least, I’ve learned a lot about these EVs.
If you have any questions, feel free to reach out. I should see a notification when I get a comment on any of my videos. For more useful Tesla insight, here are some useful guides, along with my favorite accessories.
Thanks for stopping by and best of luck tracking down cheap Tesla insurance. I’m guessing we’ll see prices come down as the Model Y and Model 3 become even more popular.