Tesla Electric Car Insurance

Tesla’s electric cars are the iconic symbol of innovation in the UK EV sector. Getting Tesla electric car insurance can be costly due to Tesla’s expensive blend of advanced technology, electric powertrains, and unique features.

In this guide to Tesla car insurance, we’ll fully review Tesla electric car insurance in the UK, exploring what makes it different, what options are available, and how Tesla owners can find the best or cheapest insurance cover for their EV.

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What Teslas Can You Buy in The UK

Tesla has revolutionised the UK car industry, with its range of cars that combine high performance and cutting-edge technology. 

Let’s have a run through the Tesla models available in the UK and their standout features:

Tesla Model S

  • This is Tesla’s flagship sedan, known for its luxurious interior and impressive range.
  • The Model S boasts a high-performance all-wheel-drive system and advanced autonomous driving features. 
  • The Model S Plaid variant has superb acceleration, reaching 0-60 mph in just about 2 seconds.

Tesla Model 3

  • The Model 3 is Tesla’s most popular and affordable model, it’s the most common Tesla that needs insuring on UK roads.
  • It offers a blend of performance, range, and advanced technology, suited for everyday use.

Tesla Model X

  • The Model X is a luxury SUV known for its distinctive Falcon Wing doors and spacious interior.
  • It’s ideal for families or those needing more cargo space, without compromising on performance.
  • The vehicle comes with features like a panoramic windshield and an advanced air filtration system.

Tesla Model Y

  • The Model Y is a compact SUV, offering a more affordable SUV option in the Tesla lineup.
  • It maintains a balance between efficiency, space, and performance, suitable for a wide range of users. Its versatility is a key selling point, offering optional third-row seating to accommodate up to seven passengers.
Tesla charging with a Zappi EV charger

What Types of Tesla Car Insurance Cover are there?

When it comes to insuring a Tesla in the UK, drivers have three main options, just the same as with petrol cars. Each Tesla insurance option has different levels of protection and is suited to varying needs and budgets. 

Understanding the differences between these types of insurance cover is crucial for Tesla owners to ensure they choose the right policy. Here are the three main types of car insurance cover available for Tesla vehicles:

Third Party Tesla Car Insurance

This is the most basic form of car insurance and is the minimum legal requirement in the UK.

It covers damages or injuries that the policyholder causes to other people and their property. However, it does not cover any damage to the policyholder’s own Tesla.

This type of insurance is often chosen by Tesla owners looking for the most economical option and are willing to accept the risk of not having coverage for damages to their own vehicle.

Third Party, Fire and Theft Tesla Car Insurance

This type of insurance includes everything covered by Third Party insurance, with additional protection.

It covers the Tesla owner against loss or damage to their vehicle caused by fire or theft.

This is a middle-ground option for Tesla owners who want more protection than the basic Third Party insurance but are not looking for the full coverage provided by Fully Comprehensive insurance.

Fully Comprehensive Tesla Car Insurance

Fully Comprehensive insurance offers the most extensive coverage and is often recommended for Tesla vehicles due to their high value and repair costs.

This insurance covers damages to the policyholder’s Tesla, as well as damages or injuries to third parties.

Additional coverages often included are accidental damage, vandalism, and sometimes coverage for personal belongings, windscreen damage, and more.

Given the advanced technology and cost associated with repairing or replacing parts in Tesla vehicles, this type of insurance is a popular choice among Tesla owners.

What Insurance Group are Teslas in?

Teslas are generally placed in higher insurance groups due to their advanced technology, high-performance capabilities, and the cost associated with repairing and replacing their parts. 

Electric Car Insurance groups in the UK range from 1 (the lowest) to 50 (the highest), and they play a significant role in determining insurance premiums.

Tesla Model Y: The Model Y is placed in Insurance Group 46 and also in the highest category, Group 50.
Tesla Model 3: The Model 3 falls into Insurance Groups 48 and 50.
Tesla Model S and Model X: Both the Model S and Model X are categorized in the highest insurance group, Group 50.

The Best Tesla Car Insurance

The best Tesla car insurance is a policy that comprehensively covers the unique needs of a Tesla vehicle. The ideal insurance for a Tesla should have all the following features, ensuring maximum protection and convenience for the owner:

  • Comprehensive Coverage for Charging Equipment
    The best electric car insurance should include cover for charging cables, wall boxes, and adapters, protecting against damage or theft of these crucial components.

  • Inclusive Battery Coverage
    Given the high cost and importance of Tesla’s battery, the policy should cover the car battery, regardless of whether it is owned or leased.

  • Assistance to the Nearest Charging Point
    In case of running out of charge, the insurance should offer EV roadside assistance that includes recovery to the nearest charging station.

  • Protection for Over-the-Air Software Updates
    Coverage should extend to issues that might come from over-the-air software updates.

  • Reimbursement for Unplanned Charging Costs
    The policy should cover expenses incurred from using public or emergency charging in unexpected situations.

  • Personal Item Cover
    The best Tesla insurance would include protection for personal belongings inside the car, such as electronics, in case of theft or damage.

  • Comprehensive Key Replacement Cover
    Considering the advanced technology of Tesla’s keys, the policy should cover the cost of replacing lost or damaged keys.

  • Protected No Claims Discount
    To ensure premiums remain stable over time, the insurance should offer protection for your no claims discount, even after making a claim.

  • Provision of a Courtesy Car
    During repairs, the policy should provide a courtesy car, ideally another electric vehicle, to maintain a similar driving experience.

  • Specific Windscreen and Glass Cover
    Due to the unique design of Tesla cars, including large windshields and panoramic roofs, the policy should specifically cover glass damage.

  • Legal Expense Coverage
    The insurance should also include legal expense cover to assist in any legal disputes or claims related to Teslas.

A policy that has all of these features would be considered the best Tesla car insurance, offering extensive cover that meets the real needs of Tesla vehicles and their owners. When selecting an electric car insurance policy, it’s important to confirm that all these aspects are included to make sure that your Tesla has the most comprehensive protection possible.

Tesla Model 3 (Insurance Group 50) White Trim parked on grass

Tesla Car Insurance Cost

The cost of insuring a Tesla can be high due to Tesla’s space-age tech and high performance, because of this Teslas fall into higher insurance groups, which influences their insurance premiums.

Based on data collected by MoneySuperMarket between April 2021 and April 2022, the average annual premiums for fully comprehensive policies with one driver holding a full UK driving licence for various Tesla models are as follows:

Tesla Model S 85 Insurance Cost

The average annual premium for the Model S 85, a high-performance luxury sedan, is approximately £1,859. This higher cost reflects its status as a premium vehicle with advanced features and technology.

Tesla Model X Insurance Cost

For the Model X, Tesla’s luxury electric SUV known for its unique Falcon Wing doors and spacious interior, the average insurance cost is around £1,248 per year.

Tesla Model 3 Insurance Cost

The Model 3, Tesla’s more affordable and popular model, sees an average annual premium of about £821. Its balance between performance, technology, and a slightly lower price point than the Model S and X is reflected in this insurance cost.

Tesla Model S Insurance Cost

Tesla Model S has an average insurance cost of £615 annually. This is a much lower rate compared to the Model S 85, down to differences in specifications, features, and the value of the car.

Tesla Model Y Insurance Cost

The Model Y, a more recent addition to the Tesla lineup and a compact SUV, has the lowest average annual premium among the Tesla models listed, at about £479. This makes it the stand-out budget option in the Tesla range.

Why Is Tesla Car Insurance So Expensive?

Tesla car insurance tends to be more expensive because the cars are equipped with cutting-edge technology, including their Autopilot system, electric powertrain, and sophisticated infotainment systems. The cost to repair or replace these components can be significantly higher than in traditional cars.

Repairing a Tesla can be more expensive due to the need for specialised parts and expertise. The battery pack is one of the most expensive parts to replace in a Tesla and if the battery gets damaged, the replacement cost can contribute significantly to the overall insurance claim cost.

Also, Tesla cars are known for their high performance, including acceleration and high top speeds. This can increase the risk of accidents, which in turn can lead to higher insurance premiums.
Electric cars are relatively new to the market compared to normal cars. This lack of historical data can lead insurers to err on the side of caution and charge higher insurance premiums for EVs.

Teslas are generally more expensive than average cars. Insurance premiums are affected by the vehicle’s value, as higher-value vehicles typically cost more to replace or repair.

MORE> How Long Does a Tesla Battery Last?

How to Get Cheap Tesla Car Insurance

In order to get the cheapest Tesla insurance in the UK you should consider several strategies. Here’s a list of tips to potentially reduce the cost of your Tesla car insurance:

  1. Consider a Telematics Policy
    Some insurers offer policies that use telematics devices to monitor driving habits. Safe, responsible driving as tracked by these devices can lead to lower Tesla premiums.

  2. Pay Annually
    Opting to pay your insurance premiums annually rather than monthly can often result in lower overall costs. Many insurers offer a discount for those who choose to pay in one lump sum each year.

  3. Increase Your Excess
    Agreeing to a higher voluntary excess can lower your premium. This is because you’re taking on more financial responsibility in the event of a claim, thereby reducing the insurer’s risk.

  4. Build a No Claims Bonus
    Maintaining a clean driving record and avoiding insurance claims can significantly reduce your premiums over time through a no-claims discount. The longer you go without making a claim, the greater the potential savings.

  5. Enhance Security and Storage
    Storing your Tesla in a secure location like a locked garage can lower the risk of theft and vandalism. Additionally, using manufacturer-approved security systems such as alarms and immobilizers can also reduce premiums.

  6. Pay Annually
    Opting to pay your insurance premiums annually rather than monthly can often result in lower overall costs. Many insurers offer a discount for those who choose to pay in one lump sum each year.

  7. Reduce Mileage
    Lower annual mileage can lead to cheaper insurance since less time on the road means a lower risk of accidents.

  8. Avoid Non-Safety Modifications
    While personalising your Tesla might be appealing, aftermarket modifications (unless they are for safety or security) can increase insurance costs. Keep modifications to a minimum unless they improve the vehicle’s safety.

  9. Shop Around for Insurance
    Don’t settle for the first quote you receive. Comparing quotes from different insurers can help you find the best deal for your Tesla.

  10. Look for Dedicated  Electric Vehicle Insurance
    Some insurers offer policies specifically tailored to electric vehicles, which might provide better coverage options at more competitive rates for Teslas.

  11. Take Advanced Driving Courses
    Completing an advanced driving course can demonstrate to insurers that you’re a lower-risk driver, potentially leading to reduced premiums.

Tesla Safty Features

Tesla’s range of electric cars come with some pretty neat advanced features that protect passengers and potentially contribute to lower insurance costs.

The structural design of Tesla cars features a unique, reinforced body construction with extensive crumple zones that provide exceptional protection during collisions. The strategic placement of the battery pack lowers the vehicle’s centre of gravity, significantly reducing the risk of rollovers, a common concern in standard SUVs.

Tesla vehicles come equipped with a sophisticated airbag system, strategically positioned to maximize safety across various types of collisions. This system includes front, knee, and side curtain airbags, each designed to offer maximum protection.

Additionally, Tesla cars are fitted with automatic emergency braking as a standard feature, aiding in the prevention or mitigation of frontal collisions. The collision avoidance system is another critical safety feature, capable of detecting potential collisions with other vehicles, pedestrians, or obstacles and assisting the driver in avoiding them.

Tesla has incorporated energy-absorbing side pillars in their designs. These pillars are engineered to absorb and dissipate impact energy in side collisions, adding an extra layer of passenger protection.

The Final Word on Tesla Car Insurance

The cost of insuring a Tesla, often higher than what we are used to paying for our old petrol cars, reflects the advanced technology, performance capabilities, and repair costs associated with these luxury electric cars. However, the very features that contribute to the higher insurance costs also make Teslas some of the safest electric vehicles on the road.

For Tesla owners, finding the right insurance policy means balancing the need for comprehensive coverage with the ability to get cheaper premiums. Strategies such as paying annually, opting for a higher excess, and building a no-claims bonus can help reduce costs. Additionally, the choice between different levels of coverage – from Third Party to Fully Comprehensive – allows Tesla owners to tailor their insurance to their specific needs and preferences.

While insurance for a Tesla may come at a premium, the benefits of driving such an advanced, safe, and environmentally friendly electric car often make the costs worth it. With careful consideration and informed choices, Tesla owners can find insurance policies that provide the protection they need at a price that aligns with their budget.

This article is intended solely for informational purposes and should not be considered as advice. It is important to consult the specific terms and conditions of an insurer before making any commitments to financial products.

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