Is Tesla insurance affordable or ridiculously overpriced? The Palo Alto, California-based company is making its vehicles more affordable, but what about its vehicle insurance? Teslas will save drivers money on gas and oil changes but insuring a vehicle can be one of the most costly parts of car ownership. MotorTend broke down how insuring Tesla models compares to insuring luxury BMWs.
Is a Tesla expensive to insure?
Before the introduction of the Tesla Model 3 and Model Y, all Teslas were considered luxury vehicles. Naturally, insurance coverage for these luxury vehicles was above average. In fact, the Tesla Model S is one of the most expensive vehicles to insure on the market.
The 2021 Tesla Model S Performance Plaid is second only to Maserati insurance prices when it comes to expensive coverage. The Model S Plaid costs an average of $4,143 to insure. This is over three times the average annual insurance costs of a good driver with good credit in America. So, yes, Tesla models have been notoriously expensive to insure. Although, the popularity of the more affordable Tesla Model 3 and Model Y could change the narrative around Tesla insurance costs.
How much does it cost to insure a BMW?
German automaker BMW creates luxury vehicles, so insuring a BMW can get pretty pricey. The average cost to insure a BMW is close to $4049. The BMW X1 has one of the most reasonable insurance coverage price ranges for the automaker. Unfortunately, models like the BMW M4, 740i, and i8, cost well over $4000 to insure for the average driver.
BMWs are much more expensive to insure than other vehicles. Driving luxury automobiles comes at a price that extends far beyond the purchase price. BMWs may boast amazing performance attributes, but they can become very expensive to own and maintain over time. How do BMW models compare to Teslas in regards to insurance coverage prices?
Which brand is cheaper to insure: Tesla or BMW?
MotorTrend’s report concluded that the Tesla Model 3 and BMW 330i are nearly identical in insurance coverage costs. The highest Tesla Model 3 provides better insurance value than the BMW 330i’s final trim. The Tesla Model S costs about 600 more dollars to insure on average than the comparable BMW 7 at $3,673 a year.
Tesla’s compact SUV, the Tesla Model Y, costs $2,118 to insure on average. The BMW X3 compact SUV costs $1,725 on average to insure. Tesla’s luxury SUV, the Model X, costs an average of $3,355 a year to insure. The comparable BMW X5 M50i costs around $2,528 to insure annually.
All in all, BMWs are cheaper to insure in every vehicle class. Teslas may save money in certain areas, but their coverage prices can get pretty ridiculous, especially when compared to high-end automobiles that may offer more luxury and comfort. When it comes to more affordable insurance options, German automaker BMW has Tesla beat. If you are looking to save money on insurance, it’s probably a good idea to avoid either brand. Is a new Tesla or BMW in your future, or are you passing on these expensive rates?