Your Tesla insurance rate is determined by which car you drive, the address you supply,
how often you drive, the insurance coverage you choose, and your vehicles monthly safety rating.
Teslas Auto Insurance is tied directly to a Tesla car,
which allows the company to evaluate the customers risk based on real-world driving behavior, and then adjust the monthly premiums accordingly.
What makes Tesla Insurance so expensive is that Teslas have higher repair costs when they have accidents,
which is the main factor used by insurance providers to set rates for particular makes and models.
Accident insurance costs are especially expensive for Teslas due to their high repair and service costs, higher than those for other luxury cars or EVs.
The expensive repair costs contribute to higher insurance premiums,
as insurers must pay out more on an accident claim to fix your damaged Tesla,
and this expense is passed along to you through higher average auto insurance rates for Teslas.
Most large auto insurance providers do offer coverage for Teslas, but since they classify them as luxury vehicles, they charge a higher-end premium to match.
Tesla plans to leverage its knowledge about the Teslas safety features and partly automated driving tech
to lower the cost of insurance for drivers, particularly those that use the companys Autopilot system.