Car insurance is an expense most car owners will have to deal with. Insurance premiums can add up pretty quickly. This is especially true for luxury cars like Tesla EVs, which will be insured at luxury rates. However, that’s not the case for the Tesla Model 3, which is a relatively cheaper car to insure.
The Tesla Model 3 is relatively cheap to insure
The math behind car insurance is a very complicated topic. Car insurance companies factor many aspects into their equations to give you a quote. That’s where averages come in handy. According to NerdWallet, the Tesla Model 3 ended up being one of the cheapest cars to insure on average.
The Model 3 barely made NerdWallet’s list, but it still made it. The Model 3 didn’t crack the top 10, but it did end up coming in 25th. According to NerdWallet, The Model 3’s average annual insurance premium was $2,215, which comes to about $184 a month.
The cheapest car to insure was the Subaru Outback on average, which had an annual insurance premium of around $1,392, which is about $116 a month.
Still on the list of the cheapest EVs to insure
The Model 3’s numbers are better when its insurance cost is compared with its price tag. According to NerdWallet, the Model 3’s insurance costs are equal to around 5.83% of its prices, which is average. The Outback has insurance costs that are equal to 5.22% of its price. Another car on the list, the Nissan Sentra, has insurance costs that are equal to 9.03% of its price.
The Model 3’s placement is better when compared to its peers. Like NerdWallet wrote, EVs are disadvantaged since car insurance companies think EVs are more costly to insure. This is partly because of the high price tags of EVs and high potential repair costs.
The Tesla Model X will cost about $4,000 a year to insure, while the Model S will cost about $4,100. Even compared to another cheaper EV, the Chevy Bolt, the Model 3 comes out ahead. According to Finder, it’ll cost about $2,800 a year to insure a Bolt, which comes out to about $238 a month. That means that Model 3 owners will save about $600 a year on average car insurance compared to Bolt owners.
Why the Tesla Model 3 is cheaper to insure
The Model 3 is the cheapest Tesla on the market, with a starting price of just under $40,000. It’s not surprising that its insurance costs are more affordable than other Teslas. However, the Model 3 comes with some great features that may help drive down insurance costs.
Tesla’s security and safety system make it pretty difficult for a Tesla to get stolen. Tesla also offers its own car insurance for Tesla owners in California with plans to eventually expand its operations elsewhere. This can be helpful as Tesla owners who are on Tesla Insurance may save significantly more money on their car insurance than other EV owners using a regular insurance company.