Tesla vehicles have long been expensive to insure, largely due to their high-tech components and costly battery repairs. However, recent acts of vandalism targeting Teslas—coinciding with public backlash against CEO Elon Musk—have raised questions about whether insurance premiums could climb even higher.
While experts acknowledge that a prolonged increase in vandalism could impact rates, they believe it is too early to determine any immediate effects. “It isn’t something drivers need to be worried about happening today,” said Shannon Martin, an insurance expert at Bankrate. “But it is something they need to keep their eye on in the future, especially potential Tesla owners.”
Why Is Tesla Insurance Already So Expensive?
Tesla models consistently rank among the most expensive vehicles to insure. According to Insurify, repairing a damaged Tesla costs about $1,300 more than fixing a comparable gas-powered car. This is reflected in insurance premiums, with Bankrate data showing the following average annual costs for full coverage:
- Tesla Model 3: $3,495
- Tesla Model Y: $3,771
- Tesla Model X: $5,459
For comparison, the electric Ford F-150 Lightning costs $2,942 to insure, while the national average for all cars is $2,678. Among the 50 most popular cars in the U.S., the four most expensive to insure are all Teslas.
Could Vandalism Drive Up Rates?
Insurance companies factor in various elements when setting premiums, including vehicle make and model, parking conditions, and personal driving history. While vandalism can contribute to higher rates, Matt Brannon, a data journalist at Insurify, explains that collisions and individual driving records typically play a bigger role.
Currently, reports of Tesla vandalism remain scattered across regions like the Pacific Northwest and the Northeast. If these incidents escalate significantly, insurers could respond by raising comprehensive coverage rates or even refusing to issue new policies in high-risk areas.
“The first thing insurers could do if vandalism becomes widespread is to stop writing new policies for Tesla owners in affected regions,” Brannon said. “They could resume offering policies once the trend declines or adjust rates to reflect the increased risk.”
How Are Insurers Responding?
So far, no major insurers have announced changes to Tesla coverage, according to Mark Friedlander of the Insurance Information Institute. Tesla also offers its own insurance, though its rates are not publicly disclosed and are only available in 12 states.
Most auto insurance policies renew every six months, meaning any rate adjustments due to vandalism—if they occur—would likely take time to materialize.
Past Precedents: Hyundai & Kia Theft Surge
A comparable situation arose recently when a TikTok challenge demonstrated how to steal Hyundai and Kia vehicles, leading to a 1,000% surge in thefts between 2020 and mid-2023. Some insurers refused to cover the affected models, while others limited comprehensive coverage.
Whether Tesla will face similar restrictions remains uncertain, but for now, Tesla owners should stay aware of potential shifts in insurance policies.
