Compare Canada’s cheapest Tesla car insurance rates
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- Insuring your Tesla vehicle in Canada
- How much is it to insure a Tesla vehicle for a young driver?
- How much is it to insure a Tesla for an experienced driver?
- Which Tesla model is the cheapest to insure?
- How much can a traffic ticket or an accident raise your insurance?
- How to get cheaper car insurance for your Tesla
- Should you buy or lease your Tesla?
- Which Tesla model is considered safest?
- Protecting your car with InsureMyTesla
Insuring your Tesla vehicle in Canada
Though many other brands are catching up to Tesla in the electric vehicle (EV) segment, Tesla cars are still arguably the best from technological perspective. This is also its Achilles’ heel, since advanced technology often leads to high repair costs, which in turn lead to high insurance premiums.
Below, you’ll find out how various factors – within and outside of your control – could impact insurance premiums for your Tesla vehicle.
How much is it to insure a Tesla vehicle for a young driver
If you're a young driver interested in insuring a Tesla, you might find that the insurance costs are on the higher side. Insurance companies assess various factors when setting rates, and Teslas come with specific characteristics that can drive up premiums for younger drivers.
Here’s a look at why Tesla insurance might be more expensive for you and the key reasons behind it.
Driver's risk level: Insurance companies generally see young drivers as higher risk due to their lack of driving experience. Teslas, especially with their instant torque and fast acceleration, can be tempting for younger drivers to push to their limits increasing the chances of accidents, leading to higher premiums.
Car type and value: Teslas are high-end electric vehicles that tend to have a higher market value compared to standard cars. With models like the Tesla Model 3 or Model Y, the overall cost to repair or replace them can be quite high due to the expensive technology and parts used in the vehicle. This means that if something happens to your car, the insurance company would need to pay more for repairs or a replacement, leading to higher premiums.
Performance: Teslas, particularly models like the Model S or Model 3 Performance, are known for their impressive acceleration and speed. Young drivers might be more likely to take advantage of this power, which could lead to risky driving behavior.
Repair costs: Teslas use specialized parts and advanced technology, so if you're involved in an accident, the cost of repairing your vehicle can be significantly higher than with conventional cars. For example, the electric battery packs in Teslas are expensive to replace.
Location: Where you live can also affect how much you pay for insurance. If you’re driving in a busy urban area, where traffic is dense and the risk of accidents is higher, insurance premiums tend to go up. Teslas are more likely to be driven in these high-risk areas due to their popularity, especially in larger cities, making insurance more expensive for young drivers who live in such locations.
These factors, like driving risk, repair costs, the car’s value, and location, help explain why Tesla insurance premiums can be high for young drivers. However, there are ways to get discounts, even for young drivers.
Age | Insurance cost range |
|---|---|
18 | $19,544 - $21,273 |
19 | $14,431 - $16,404 |
20 | $12,208 - $14,755 |
21 | $10,336 - $12,348 |
22 | $8,407 - $9,612 |
23 | $7,693 - $8,808 |
24 | $7,403 - $8,460 |
25 | $6,134 - $7,338 |
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How much is it to insure a Tesla vehicle for an experienced driver
Even experienced Tesla owners can see varying insurance rates depending on several factors. While safe driving and a clean record help lower premiums, other elements still have a significant impact.
Age and experience: Drivers in their 30s, 40s, and 50s typically enjoy the best rates. However, as drivers age, particularly those in their 60s or 70s, insurance premiums may rise due to factors such as slower reflexes and health-related concerns.
Tesla model: The specific Tesla you drive has a big influence on your insurance rate. Models like the Model 3 tend to be cheaper to insure, as they are smaller and less expensive to repair.
Driving history: If you have a history of safe driving with no accidents or violations, your rates will likely stay low. However, recent accidents or traffic violations can increase your premium, even for seasoned drivers.
Mileage: If you drive your Tesla frequently, your risk of an accident rises. This could result in higher premiums. But, if you only use it for occasional drives or short trips, you might qualify for a low-mileage discount.
Location: Where you live plays a major role in determining your insurance costs. Living in an area with heavy traffic, frequent accidents or high rates of vehicle theft can lead to higher premiums.
Safety features: Teslas are equipped with advanced safety technologies, such as automatic emergency braking and autopilot features. These features make the vehicle less risky to insure and could result in discounts on your insurance premiums.
Coverage and deductibles: The type of coverage you choose impacts how much you pay. Full coverage provides more protection but is more expensive, whereas opting for a higher deductible can lower your monthly payments, though you’ll need to pay more out of pocket if you make a claim.
You can also save on your insurance by bundling policies and taking advantage of various discounts, such as loyalty rewards or usage-based programs like safe driving or low mileage.
Age | Insurance cost range |
|---|---|
30 | $5,187 - $5,669 |
35 | $4,896 - $5,176 |
40 | $3,501 - $4,827 |
45 | $3,065 - $4,749 |
50 | $2,872 - $4,674 |
55 | $2,770 - $4,110 |
60 | $2,724 - $4,028 |
65 | $2,708 - $3,865 |
Methodology
The table above outlines the average cost of car insurance in Toronto for a female G-licensed policyholder driving a 2023 TESLA MODEL 3 LONG RANGE 75D 4DR AWD. Using our rate calculator, we calculated average auto insurance premiums by age, assuming the driver has a clean driving record. All ranges and averages presented represent the three lowest quotes offered. The insurance policies used for comparison include $1,000,000 in coverage, along with a $1,000 deductible for both collision insurance and comprehensive insurance.
It’s important to note that these quoted rates are specific to this driver profile. You are more likely to find rates at the lower end of the provided range by comparing quotes from different providers and selecting the one that offers the best value for your needs.
Disclaimer
Auto insurance rates are influenced by a variety of factors, including (but not limited to) your postal code, driving history, the specific make and model of the vehicle, additional safety features, whether you attended driving school, and more. This means the premiums for individuals with different circumstances may vary significantly from the rates shown here. Always compare personalized quotes to ensure you're getting the best coverage at the best price.
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Which Tesla model is the cheapest to insure?
When it comes to insuring a Tesla vehicle, Model Y stands out as the cheapest.
Here are some reasons the cost of insuring Model Y is lower than for the rest of them:
Vehicle type and size: Compact, efficient models like the Tesla Model 3 or Model Y often have lower insurance costs compared to larger vehicles. Smaller sedans and crossovers tend to be less expensive to repair and present a lower risk profile. On the higher end, models like the Model S Plaid or Model X may carry higher premiums due to their size, power, and potential repair costs.
Safety features: Tesla vehicles are equipped with advanced safety technologies, which can influence insurance rates. Features like Autopilot, collision avoidance, and lane-keeping assist reduce the likelihood of accidents, making certain models more affordable to insure. Tesla Model 3 and Model Y , for example, include many modern safety tools that insurers value highly.
Repair costs and demand for parts: Repair expenses play a major role in premium calculations. For instance, replacing parts on a high-end model like the Model S Plaid typically costs more than repairing a standard compact SUV like the Model Y. Availability of parts also matters—premium or heavily customized models may require specialized repairs, increasing their premiums.
Performance and risk levels: Larger or more powerful vehicles, such as the Tesla Model X or Model S, might attract higher premiums due to their increased risk in certain driving conditions. Insurers assess how these vehicles are used and their relative risks. Conversely, practical, utility-focused models like the Model Y are considered safer and more reliable, which lowers their risk ratings.
Driver profile and intended use: The vehicle’s purpose also influences rates. For example, sporty models like the Model 3 Performance, often used for performance driving, may have premiums that reflect those specific risks. Similarly, family-friendly options like the Model Y should offer competitive insurance costs depending on their intended usage.
Vehicle | Insurance cost range |
|---|---|
Tesla Model Y | $4,600 - $5,400 |
Tesla Model 3 | $4,896 - $5,176 |
Tesla Model X | $4,990 - $7,682 |
Tesla Model X Plaid | $4,990 - $7,682 |
Tesla Model S | $5,094 - $7,009 |
Tesla Model S Plaid | $7,608 - $8,798 |
Tesla Model 3 Performance | $8,760 - $8,760 |
Methodology
The table above presents insurance cost ranges for some of the most popular 2023 Tesla models, calculated specifically for a Toronto-based, G-licensed, 35-year-old female driver. Using our rate calculator, we determined these costs by comparing the three cheapest quotes available for each model. This driver profile assumes a clean driving record and standard coverage, which includes $1,000,000 in liability coverage as well as a $1,000 deductible for both collision and comprehensive insurance.
By focusing on the most affordable quotes from various providers, the ranges provide a clear picture of what drivers with similar profiles can expect to pay. Selecting quotes from the lower end of the range can help you secure the best value for your insurance policy while still providing adequate coverage.
Disclaimer
Insurance premiums depend on many variables, such as your driving history, the vehicle's make and model, additional safety features, your postal code, and more. The rates shown here are specific to the outlined driver profile and may differ from costs for individuals with different circumstances or coverage needs. Always compare personalized quotes across providers to ensure you find the best rates and coverage tailored to your situation.
How much can a traffic ticket or accident raise your insurance?
With Tesla’s advanced safety features, you might expect accidents or tickets to have minimal impact, but unfortunately, they still matter. For instance, getting a ticket for distracted driving or a fender bender could cause your premiums to jump because Tesla’s repairs tend to be more expensive. Insurers also view repeated infractions as a sign of risky driving, which could mean more substantial rate hikes.
Here are some of the possible changes you will see in insurance rates, based on major convictions and at-fault accidents:
Age | Major convictions | At-fault accidents | Insurance cost range |
|---|---|---|---|
30 | None | None | $5,187 - $5,669 |
None | 1 | $8,942 - $12,563 | |
1 | None | $9,739 - $10,824 | |
1 | 1 | $24,650 - $26,826 | |
35 | None | None | $4,896 - $5,176 |
None | 1 | $8,600 - $10,601 | |
1 | None | $9,247 - $10,404 | |
1 | 1 | $23,248 - $24,650 | |
40 | None | None | $3,501 - $4,827 |
None | 1 | $8,218 - $9,864 | |
1 | None | $6,499 - $9,888 | |
1 | 1 | $21,391 - $24,650 | |
45 | None | None | $3,065 - $4,749 |
None | 1 | $8,192 - $9,449 | |
1 | None | $5,647 - $9,852 | |
1 | 1 | $20,061 - $24,172 | |
50 | None | None | $2,872 - $4,674 |
None | 1 | $8,062 - $9,014 | |
1 | None | $5,269 - $9,708 | |
1 | 1 | $19,355 - $22,472 | |
55 | None | None | $2,770 - $4,110 |
None | 1 | $7,013 - $8,472 | |
1 | None | $5,066 - $8,436 | |
1 | 1 | $18,625 - $22,782 | |
60 | None | None | $2,724 - $4,028 |
None | 1 | $6,973 - $8,122 | |
1 | None | $4,979 - $8,436 | |
1 | 1 | $23,168 - $24,650 | |
65 | None | None | $2,708 - $3,865 |
None | 1 | $6,673 - $8,059 | |
1 | None | $15,209 - $17,726 | |
1 | 1 | $17,712 - $23,731 |
Methodology
The table provides a comparison of average car insurance premiums in Toronto for a female G-licensed driver operating a 2023 TESLA MODEL 3 LONG RANGE 75D 4DR AWD. The analysis includes two driving profiles: one for drivers with clean records, meaning no major convictions or at-fault accidents, and another for drivers with one at-fault accident, one major conviction, or both. Using a rate calculator, we determined the average premiums across different age groups by selecting the three lowest quotes from leading insurance providers. The insurance coverage considered includes $1,000,000 in liability coverage and a $1,000 deductible for both collision and comprehensive insurance. For drivers with at-fault accidents or convictions, premiums were adjusted based on the additional risk weighted by insurers, leading to higher quotes for that group.
Disclaimer
It is important to note that the rates listed are specific to this driver and vehicle profile and may vary significantly based on individual circumstances. Factors such as postal code, claims history, specific vehicle features, and even completion of a recognized driving school course can influence premiums. To ensure the best value, it is essential to obtain personalized quotes from multiple providers, as rates and coverage offerings can differ substantially depending on how each insurer evaluates risk. Comparing quotes allows drivers to find the most suitable and cost-effective insurance for their unique needs.
How to get cheaper car insurance for your Tesla
When it comes to insuring your Tesla, there are plenty of options to cut costs while staying covered. For instance, many Tesla models already come with high-tech safety features, which can qualify you for lower premiums. Or, you could look into usage-based insurance programs that reward safe driving. Don’t forget about bundling policies, like auto and home insurance, to unlock further savings in an easy way.
Here are some ways you can get cheaper car insurance
Bundling policies
Bundling your auto and home insurance—or combining other policies like tenant or condo insurance—can significantly reduce your premiums. Insurance companies appreciate customer loyalty and often reward it with discounts. Savings can reach up to 20% or more. By taking advantage of this, you not only simplify your insurance management but also save a chunk of change.
Multi-vehicle discount
If your household has more than one car, insuring them under the same policy can lead to big savings. This is because insurers offer discounts (up to 15%) for placing multiple vehicles together under one account. It’s an easy win for families or households with multiple drivers, as it combines coverage while cutting costs.
Loyalty discounts
Insurance companies love loyal customers, and they often show it by reducing premiums for those who stick with them year after year. The longer you stay, the more you save—it can range from 5% after one year to as much as 10% for a decade of loyalty. If you’re happy with your insurer and their service, this discount is an excellent perk.
Higher deductibles
Choosing a higher deductible (the amount you pay out of pocket in a claim) can reduce your annual premiums by 5-10%. While the trade-off means you’d pay more in case of an accident, it’s a smart option for drivers who are confident in their safe-driving habits and want lower upfront costs.
Paying annually
Paying your entire premium in one annual payment instead of monthly installments can save you money by avoiding administrative or installment fees. While it requires a larger payment upfront, it’s a simple way to cut down on overall costs.
Telematics programs
Telematics are devices which can be added to you car or through a mobile app, which monitor your driving habits, such as speed, braking and mileage, rewarding safe drivers with lower premiums. They offer benefits like fairer rates for low-mileage drivers, personalized discounts and improved driving awareness. To maximize savings, you should focus on consistent safe driving, reduce high-risk night trips and choose a telematics program that best fits your needs.
Winter tires
Installing winter tires is not only smart for safely navigating Canada’s icy roads, but it can also reduce your premiums by 2%-5%. Some provinces, like Ontario, even require insurers to offer this discount. If you regularly switch to winter tires, make sure your insurer knows about it.
Anti-theft devices
Vehicles with anti-theft systems, like alarms or tracking devices, are less likely to be stolen, and insurers recognize this by offering discounts up to 15%. If your car doesn’t come with built-in anti-theft features, consider installing an aftermarket system to take advantage of this savings opportunity.
Should you buy or lease your Tesla?
Choosing between buying or leasing a Tesla can be an important financial decision. Each option offers unique advantages, depending on your lifestyle and budget. Leasing might result in lower monthly payments and allows you to drive a newer model every few years, though it typically comes with mileage restrictions. On the other hand, buying gives you full ownership of the car and eliminates concerns about mileage limits, but it often requires a larger down payment or higher monthly installments.
Here's a list of advantages and disadvantages to help you make the right call regarding your potential Tesla vehicle:
Leasing
Advantages:
- Cutting-edge updates: Leasing allows you to drive a new Tesla every few years, ensuring access to Tesla’s constantly improving features, like enhanced Autopilot or Full Self-Driving upgrades.
- Lower monthly payments: Lease payments are usually more affordable than buying, making luxury EVs like the Model Y more accessible.
- Warranty protection: Leased vehicles are typically covered by Tesla’s warranty, offering peace of mind and saving on repairs during your lease term.
- Flexibility in ownership: At the end of your lease, you can choose to upgrade to a newer Tesla model or reconsider your options without the burden of selling or trading in a car.
Disadvantages:
- Mileage restrictions: Most Tesla leases come with mileage caps, so if you’re planning a lot of road trips in your Model 3 or Model X, you may face overage charges.
- No ownership equity: Leasing doesn’t allow you to build long-term value, and you must return the car once the lease is over.
- Customization limitations: Modifications to your Tesla are typically prohibited, so you can’t make it uniquely yours.
- Early termination penalties: Ending a lease early can be costly, so committing to the full term is essential to avoid fees.
Buying
Advantages:
- Ownership freedom: Once you’ve paid off your Tesla, it’s fully yours, giving you control over vehicle usage and equity for future resale or trade-ins.
- Unlimited mileage: Whether commuting, adventuring, or road-tripping, there’s no need to worry about how far you drive your Model X or Model S.
- Personalization options: Owning your Tesla means you can customize it to fit your personality, whether it’s upgraded wheels, wraps, or unique interior accessories.
- Long-term savings: For committed EV owners, buying can be the more cost-effective choice over time, eliminating recurring lease payments.
- Resale value: Teslas hold their value surprisingly well due to their demand and electric efficiency, making resale or trade-in easier when the time comes.
Disadvantages:
- Higher upfront costs: Compared to leasing, buying usually requires a larger down payment and higher monthly payments.
Repair expenses: After Tesla’s warranty period ends, you’ll need to budget for maintenance and eventual repairs, especially for luxury trims like the Performance and Plaid models.
Potential depreciation: While Teslas typically depreciate slower than many cars, their value will still decrease over time.
Which Tesla model is considered safest?
The 2024 Tesla Model Y earns its reputation for outstanding safety, with top ratings provided by the Insurance Institute for Highway Safety (IIHS). This midsize luxury SUV excelled in key crash tests, showcasing Tesla's commitment to engineering excellence:
Small overlap front test: Simulates a crash where the front corner of the vehicle impacts an object like a pole. The Model Y’s design effectively directs and absorbs impact forces, providing impressive protection to passengers.
Moderate overlap front test: Measures how well the car shields passengers in a broader front-end collision. The durable cabin and reliable safety systems resulted in a top score.
Side impact test: Assesses passenger safety during side collisions, such as being hit by another vehicle. Reinforced panels and advanced side airbags offer robust protection during these impacts.
Beyond its crash safety credentials, the Model Y excels in crash avoidance and mitigation technology. Its standard pedestrian detection system identifies people on the road, using sensors to issue warnings and applying automatic braking when needed. The vehicle’s seat belt reminders ensure every seat is secure, while the LATCH system offers an easy way to install child seats safely. High-quality headlights provide enhanced visibility during nighttime drives, improving safety in low-light conditions.
Category | Evaluation criteria | Rating |
|---|---|---|
Crashworthiness | Small overlap front | G |
Moderate overlap front: updated test | G | |
Side: updated test | G | |
Crash avoidance & mitigation | Headlights | G |
Front crash prevention: pedestrian (Standard system) | G | |
Seat belts & child restraints | Seat belt reminders | G |
LATCH ease of use | A | |
Other available safety features
| ||
Source: The Insurance Institute for Highway Safety
Protecting your car with InsureMyTesla
As an alternative the Tesla Insurance program in the US, Tesla offers InsureMyTesla, an insurance plan, powered by Aviva, that offers enhanced protection, increased value and benefits specifically for Tesla vehicles.
The plan includes:
Bundling discount
You can save on premiums by combining your home and auto insurance policies.
Policy customization
In addition to buying a car insurance policy with standard features, you can choose from optional coverages tailored to your specific needs.
24/7 claim service
You can make your insurance claims online, by phone and an insurance representative – at any time that suits you.
