|Savings: $1,521 (43%)|
Tesla is an electric vehicle (EV) using superior car technology to enhance driving experience, while offering superlative security systems and rider protection measures. Without a doubt, Tesla is top of the line in EV segment and offers some of the best tech features available in the market. However, being a superlative, technologically driven car comes with its share of premium services, leading to expensive insurance. Being fitted with high-quality sensors, cameras and expensive technology makes Tesla an insurance company’s ‘cash cow’. Repairing Tesla after a collision that might look like a minor fender-bender can cost big bucks because of the exclusive technology it offers. Compared with gas-powered vehicles, repairing a Tesla can be more expensive since not all mechanics possess the necessary expertise to repair them.
Tesla’s driver assistance package called Autopilot is common in all its cars, but it has recently come up with a Full Self-Driving (FSD) system which is a much more advanced feature. These features could impact your insurance premium as they’re an addition to the already tech loaded EV.
Many insurance companies in Canada offer Tesla insurance, which is likely to be more expensive than gas-powered cars and other EVs.
In Canada, Tesla offers a comprehensive insurance program, InsureMyTesla, that it has developed with Aviva Agency Services. Aviva distributes insurance products underwritten by S&Y Insurance Company and Traders General Insurance Company. This insurance program is not available in British Columbia, Manitoba or Saskatchewan. To be clear, Tesla does not have its own insurance agency. This insurance program offers discounts recognizing the safety and technology in Tesla vehicles, as well as multi-vehicle and multi-policy discounts, wall connector coverage, full glass coverage, coverage for key fobs if they’re lost or damaged, or destroyed, and an optional endorsement up to 60 months for new for old replacement should Tesla vehicle become a total loss.
While your car insurance premium depends on your policy specifics, a basic or mandatory coverage can be cheaper than a policy with additional coverage. For an 18-year-old male driver with a clean driving record in Toronto and basic mandatory coverage, the average annual premium for 2023 Tesla Model 3 would be $4,573. This is higher compared to annual average premium paid by a 40-year-old driver with clean driving record living in Toronto driving a same car, which would be $1,050. The premium depends on your postal code, claims history, driving record, car usage, among other factors.
It is common to see the premium reduce as you age and your driving usage. There are several factors you could consider to help drive down your insurance premium and the simplest one being to shop around and compare prices.
Here are some more examples of average premium paid by Toronto male drivers living in the postal zone M6G 0A1 based on their age, a basic mandatory coverage with usage of 10,000 kms/year with a clean driving record and no claims history:
|Driver’s age||Average Premium 2023 Tesla Model 3|
The 2023 Tesla Model Y Long Range Dual Motor with All-Wheel Drive costs over $76,090 and is more expensive than the Model 3. This implies that the premium for this car would be higher than the Model 3.
We looked at the recent average premium paid by Toronto male drivers using 2023 Tesla Model Y living in the postal zone M6G 0A1 based on their age, a basic mandatory coverage with usage of 10,000 kms/year with a clean driving record and no claims history:
|Driver’s Age||Average Premium for 2023 Tesla Model Y|
The most expensive Tesla that ranges from $95,000 to $110,000 and more is the 2023 Model X. It comes with top notch technological features and safety systems and hence calls for special insurance. Fitted with unique tech features, this Tesla car’s insurance premium is significantly higher than Model Y or Model 3. For an 18-year-old male driver in Toronto, driving Tesla’s 2023 Model X, insurance premium on an average would cost a whopping $7,336 per year. As we know already that auto insurance premium reduces with age, we can see below that a 60-year-old Toronto man will only have to shell out $961 per year for Tesla Model X insurance if that person has a clean driving record.
|Driver’s Age||Average premium for 2023 Tesla Model X|
Another high-end luxury electric car from Tesla, the Model S comes with advanced technology and features. We know very well by now that the higher value of the vehicle, the higher insurance premiums will be. The 2023 Model S with dual motor all-wheel drive costs around $88,490 and a tri motor all-wheel drive is configured around $108,490 without potential incentives. Tesla Model S has unique components and advanced technology that can be more expensive to repair or replace compared to traditional gas vehicles. Insurance companies consider the potential repair costs when determining premiums.
Compared with Model X, the average premium for 2023 Tesla Model S is lower. A 30-year-old Toronto man driving a Tesla Model S will have to shell out $1,908 per year, compared to the same driver using Model X, which would be at $2,004.
|Driver’s Age||Average premium for 2023 Tesla Model S|