Tesla insurance premiums are increasing at more than twice the rate of the rest of the US auto market due to higher repair costs and amid increased instances of vandalism on Tesla vehicles.
Insurance on Tesla vehicles has always been fairly high, so much so that it encouraged Tesla to launch its own insurance product to try to mitigate the issue.
However, most Tesla owners still use insurance from other providers.
Insurance premiums in the US have been increasing across the board over the last year, and especially over the last few months, as the market fears the tariffs will increase auto industry repair costs.
A new study from Insurify shows that the average cost of full coverage has increased by 10% year over year, from $2,102 to $2,302.
The study also points to insurance premiums on Tesla vehicles increasing at about twice the rate of the rest of the market, and the Model Y premiums increased by almost 3 times the rest of the market increase:
Three Tesla models saw the sharpest increase in full-coverage insurance costs between 2024 and 2025, with the rates for the Tesla Model Y rising 2.9 times faster than the national average.
In fact, the study ranked the top 10 vehicles that saw the highest premium increases in the US:
- Tesla Model Y
- Percentage increase in the cost of full coverage (2024–2025): 29%
- Average annual cost of full coverage (2025): $3,996
- Tesla Model 3
- Percentage increase in the cost of full coverage (2024–2025): 24%
- Average annual cost of full coverage (2025): $4,364
- Tesla Model X
- Percentage increase in the cost of full coverage (2024–2025): 22%
- Average annual cost of full coverage (2025): $4,046
- BMW 5 Series
- Percentage increase in the cost of full coverage (2024–2025): 19%
- Average annual cost of full coverage (2025): $3,229
- Toyota Prius
- Percentage increase in the cost of full coverage (2024–2025): 18%
- Average annual cost of full coverage (2025): $2,151
- Hyundai Santa Fe
- Percentage increase in the cost of full coverage (2024–2025): 15%
- Average annual cost of full coverage (2025): $2,241
- Honda Accord
- Percentage increase in the cost of full coverage (2024–2025): 14%
- Average annual cost of full coverage (2025): $2,623
- Hyundai Elantra
- Percentage increase in the cost of full coverage (2024–2025): 14%
- Average annual cost of full coverage (2025): $2,851
- Honda Civic
- Percentage increase in the cost of full coverage (2024–2025): 13%
- Average annual cost of full coverage (2025): $2,600
- Hyundai Sonata
- Percentage increase in the cost of full coverage (2024–2025): 12%
- Average annual cost of full coverage (2025): $2,735
The study used 97 million quotes between February 2024 and February 2025 to arrive at these results.
Therefore, it’s likely that the increased instances of vandalism against Tesla vehicles had an impact on these results, but it’s likely that higher repair costs are having a bigger impact.
Teslas are notoriously expensive to repair after a collision, and insurance companies often salvage them because of this.
The automaker is trying to address the issue by opening its own body shops to try to get the repair costs under control. It seemingly has yet to have a positive impact on insurance premiums.
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