Carrier review · Updated August 3, 2026
Tesla Insurance review for the Model Y
Real-time Safety Score pricing from the automaker itself. Tesla underwrites and prices policies using vehicle telemetry rather than traditional rating factors. In California the product is a conventional filed-rate policy without telematics; everywhere else your monthly premium moves with a Safety Score derived from forward-collision warnings, hard braking, aggressive turning, unsafe following and forced Autopilot disengagement.
Who Tesla Insurance is right for
Tesla Insurance is our pick for safe drivers in supported states. Tesla prices this policy from your Safety Score rather than from a fixed annual rate, so the premium moves month to month with how you drive. There is no annual average to compare against the carriers above, so it does not appear in the price ranking on this site. Everything below covers what it offers; the price comparison has to come from a quote.
Tesla underwrites and prices policies using vehicle telemetry rather than traditional rating factors. In California the product is a conventional filed-rate policy without telematics; everywhere else your monthly premium moves with a Safety Score derived from forward-collision warnings, hard braking, aggressive turning, unsafe following and forced Autopilot disengagement.
Pros and cons
What works
- Frequently the cheapest option for drivers who hold a Safety Score of 90 or above
- No credit-based insurance score in most states, which helps drivers with thin credit files
- Coverage for wall connectors and mobile connectors is built into the policy
- Claims are filed in the Tesla app and parts routing to Tesla Collision centers is direct
- No separate surcharge for Full Self-Driving or Autopilot hardware
What does not
- Not sold in most states, so it is unavailable to the majority of owners
- A single hard-braking event can visibly raise next month's bill
- Customer service and claims-handling reviews are noticeably mixed
- You cannot bundle homeowners or renters coverage for a multi-policy discount
- Only insures Teslas, so a two-car household usually needs a second carrier
Coverage highlights
Beyond standard liability, collision and comprehensive, these are the coverages and endorsements that matter most for a Model Y owner at Tesla Insurance.
- Wall connector and mobile connector coverage included
- OEM Tesla parts used on repairs
- Rental reimbursement available as an add-on
- Roadside assistance with flatbed towing to a Tesla service center
Discounts available
Not every discount below applies in every state, and several are never surfaced in an online quote. Ask an agent to confirm each one against your filing.
Availability and claims
Where you can buy it: 13 states: Arizona, California, Colorado, Florida, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, Virginia
How claims are handled: In-app, routed to Tesla-approved body shops
Telematics: Required (Safety Score, recalculated monthly)
How Tesla Insurance compares
| Carrier | Avg. annual | Avg. monthly | Best for |
|---|---|---|---|
| USAA | $2,256 | $188 | Military members and their families |
| Travelers | $2,748 | $229 | Owners bundling home and auto |
| Nationwide | $3,044 | $254 | Low-mileage drivers using SmartMiles |
| State Farm | $3,051 | $254 | Owners who want a local agent |
Tesla Insurance FAQ
Is Tesla Insurance cheaper than a traditional carrier for a Model Y?
For a driver who consistently scores 90 or higher on Safety Score, it is often among the cheapest options available. Drivers who score in the 70s or below routinely pay more than they would with a conventional carrier, because the score drives the monthly premium directly rather than acting as a one-time discount.
Does Tesla Insurance use my driving data?
Yes, outside California. The Safety Score is calculated from vehicle telemetry including forward-collision warnings per 1,000 miles, hard braking, aggressive turning, unsafe following time and forced Autopilot disengagement. California policies are priced on filed rates without telematics.
Can I insure a non-Tesla vehicle with Tesla Insurance?
No. The product only covers Tesla vehicles, so households with a mixed garage typically carry a second policy elsewhere or move everything to a traditional carrier for the multi-vehicle discount.