Data Shows Tesla Is At Least 24% More Expensive To Insure In 2025

If you own a Tesla, expect to pay more to insure it in the future

Car insurance rates are creeping upward for all vehicles, but new data from Insurify shows some owners will have it worse. According to the numbers, the ubiquitous Tesla Model Y's insurance rates are rising 2.9 times faster than the national average and have risen 24 percent year over year.

The average cost to insure a Model Y with full coverage is $3,996 annually. The Tesla Model 3 also saw a 24 percent uptick since 2024, with the average cost to insure one being $4,364. Tesla's Model X also saw a sharp increase of 22 percent since last year, with an average cost to insure one at $4,046 annually.

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The cost to repair is driving insurance rates up

EVs don't need traditional services like oil changes, but they do require service, and that service is often far more costly than that of vehicles with internal combustion engines (ICE). When an EV owner makes an insurance claim, the insurance company has to pay more to repair the vehicle, driving rates up.

A report from analyst firm Mitchell claims that across the United States and Canada, the cost to repair a Tesla is ever-so-slightly more than the average for an EV. ICE vehicles are the least costly to repair, with mild hybrids costing about the same and plug-in hybrids a bit more costly than ICE and mild hybrid vehicles.

Dated battery technology is also to blame. As the industry shifts to cell-to-pack battery technology, which allows technicians to replace individual cells as needed, older Teslas have older technology that may require replacing an entire battery pack.

Tesla leads the pack, but other manufacturers are also costly to insure

Three Tesla models may top the list of most expensive vehicles to insure, but even more affordable vehicles can be costly. The BMW 5 Series is fourth on this list, and it's worth noting that it encompasses all 5 Series variants, including ICE, hybrid, and fully electrified models. Year over year, the cost to insure a 5 Series rose 19 percent and averages $3,229.

The Toyota Prius now costs $330 more to insure annually, an 18 percent increase, totaling $2,151 annually. The study ranks the year-over-year increase by annual cost, meaning that a Prius is the least expensive vehicle on this list.

The Hyundai Santa Fe ($2,241 per year; 15 percent more in 2025), Honda Accord ($2,623; 14 percent more in 2025), Hyundai Elantra ($2,851; 14 percent more in 2025), Honda Civic ($2,600; 13 percent more in 2025), and Hyundai Sonata ($2,735; 12 percent more in 2025) round out the top ten.

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Final thoughts

Teslas have always been costly to insure. In their earliest days, some insurance companies even refused to insure any Tesla. Other manufacturers on this list, namely Hyundai, have issues with vehicle theft, which is why the lowly Elantra is more expensive to insure than a Prius. This is why we always advise getting an insurance quote before buying any vehicle, as insuring your car is a cost of ownership, too.