Tesla car insurance

About Tesla car insurance

Tesla was founded in San Carlos, California in 2003. Today, the company is led by its charismatic CEO, Elon Musk, an American entrepreneur and business magnate.

Tesla’s first model was the Roadster, a sports car that made its debut in 2009. Since then, the automaker has released the Model S sedan, the Model X SUV, the Model 3 sedan, and the Model Y crossover. The Model 3 shattered records in 2021, becoming the best-selling plug-in electric vehicle of all time.

The company has made waves not only for the sustainability of its vehicles but for spearheading the autonomous driving movement. Tesla has been testing autonomous and semi-autonomous software for years, with the brand manufacturing all new vehicles to have the hardware necessary for full self-driving features in the future.

Fun facts about Tesla

• As of 2022, Tesla is the world’s most valuable automaker, with a market capitalization of nearly US$1 trillion.
• Tesla has a subsidiary, Tesla Energy, that develops and manufactures solar energy generation systems and battery energy storage products.
• The company’s name is an homage to Nikola Tesla, the famous Serbian-American inventor.
• Tesla is in the midst of developing an all-electric semi-trailer truck, the Tesla Semi, and an electric pickup truck, the Cybertruck, slated to be released in 2023.

Common types of Tesla auto insurance

Whichever Tesla vehicle you decide to purchase, you’ll need to buy car insurance to go with it. Remember, driving without insurance is illegal in Canada, no matter which province or territory you live in. Your specific insurance needs will vary depending on your province and how much coverage you want. Here are a few of the most common types of Tesla auto insurance coverages:

Third party liability coverage

Liability coverage is mandatory throughout Canada and aims to protect the policyholder against the cost of injury or property damage in the event they’re found at fault for an accident. This type of coverage can also help pay for legal counsel and court fees if required.

Accident benefits coverage

Accident benefits coverage is also compulsory in several Canadian provinces. It protects you in the event that you, a passenger, or a pedestrian require medical attention following an accident. Regardless of who is at fault for the accident, the policyholder can still seek to recover compensation through accident benefits coverage.

Collision

Canadian drivers may wish to consider purchasing collision coverage as part of their Tesla car insurance policy. This type of coverage protects the policyholder if they are in an accident with another vehicle or object. It covers the policyholder regardless of which party is at fault for the accident. Please note that collision coverage specifically covers the cost of vehicle damage, and does not pay for any injuries suffered in the accident (this is covered under the accident benefits portion of the policy).

Comprehensive

To protect yourself against circumstances other than car accidents, purchasing comprehensive auto insurance coverage can help. Comprehensive coverage can offer financial protection in the event of theft, vandalism, fire, water damage, and more. This type of insurance is also optional.

Accident forgiveness

If you purchase Tesla car insurance with accident forgiveness, your insurance rates won’t increase for your first at-fault collision. Like comprehensive coverage, accident forgiveness coverage is optional but may be worth it, especially if you are a high risk driver.

Direct compensation

If you suffer an injury or your car is damaged in an accident that was not your fault, you are covered under direct compensation. For this type of coverage, the policyholder must file a claim directly with their insurance company to receive compensation.

Uninsured automobile coverage

Uninsured automobile coverage protects you and any passengers in your vehicle if you get into an accident with an at-fault driver who is either uninsured or underinsured.

Factors that affect Tesla car insurance rates

When you’re ready to buy Tesla car insurance, several factors will be used to determine your car insurance rate. From local laws to your driving record, the most common factors used to calculate Tesla auto insurance are below.

Local laws

As mentioned above, each Canadian province and territory has its own car insurance regulations. To ensure your Tesla auto insurance complies with provincial law, you will need to research the minimum coverage requirements in the province where you live. Generally speaking, the higher the coverage requirement, the more expensive the insurance.

Age

Age is another factor used to determine how much your Tesla car insurance rate is. To an insurance company, age and risk go hand-in-hand, which is why every provider will ask your age when calculating your insurance rate. Young drivers with less experience along with elderly drivers may be deemed more at risk than other age groups based on statistics, so members from both these groups may pay more for Tesla car insurance..

Location

Where you live and work can also influence your insurance premium. If you live in a high-density urban area like Toronto or Vancouver, you may pay more for insurance. Since there is more traffic on the road in urban areas, your chances of getting into an accident increase, especially if you drive during rush hour. In contrast, Canadian drivers who live and work in rural parts of the country may be rewarded with lower insurance rates.

Lastly, if you live in an area that is prone to climate related weather incidents, such as floods, you may pay more for Tesla car insurance.

Annual mileage

How frequently you drive is another factor insurance companies will consider when calculating your rate. If you drive your Tesla very infrequently (for example, a couple of times per week or on the weekends only), your insurance may be less. Conversely, if you spend plenty of time on the road - if you drive as part of your job, you frequently drive at night or you drive often on highways, your insurance premium may be higher.

Driving experience and record

Driving experience and record are two of the most important details when calculating your Tesla car insurance rate. Generally speaking, the more experience you have under your belt, the better. A lack of experience is what leads to high insurance premiums for young drivers.

However, having driving experience in and of itself is not enough to lower your Tesla insurance premium. You must also have a clean driving record. A clean record indicates to the insurance company that you are a safe and responsible driver who follows the rules of the road.

In contrast, if your driving record is rife with speeding tickets, collisions, DUIs, and other unlawful acts resulting in demerit points, you will likely pay more for car insurance.

Model and year of Tesla

Which Tesla model you purchase can impact how much you pay for car insurance. In general, the more expensive the vehicle, the more it will cost to insure, simply because repairs and the cost of parts are typically higher. This means that choosing one of the cheaper Tesla models could save you money on car insurance.

How long you’ve owned your Tesla

The length of time you’ve owned your Tesla may impact how much you pay for car insurance. On the declarations page of an insurance policy, there is a space where the policyholder is required to list the names of anyone else who drives the vehicle (usually this is a partner or other family member who lives in the same household). If multiple people have shared the same car for years without any accidents, this is a positive sign for insurance companies, as it indicates you are safe and responsible drivers.

On the other hand, if you purchase new cars every year and each member of your household has their own vehicle, your insurance premium may be higher.

Marital status

One last factor that can impact how much you pay for Tesla car insurance is your marital status. Some insurance providers believe married drivers to be more financially responsible and therefore less likely to get into accidents. As a result, married people may pay less for car insurance than single people.

How to save money on Tesla car insurance

Car insurance can be costly, especially when purchasing a luxury vehicle, such as a Tesla. Owing to the high value, repair costs, and claims costs of Tesla vehicles, insurance premiums may be higher for Tesla drivers. However, there are ways to reduce how much you pay for Tesla car insurance. In fact, many Canadian insurers now offer discounts to drivers of hybrid or electric vehicles, which means buying a Tesla could automatically reduce your insurance rate. For a few other ways to save money on Tesla car insurance, check out the list of tips below:

• Purchase car insurance for multiple vehicles together (savings of up to 20%)
• Buy multiple insurance policies (home insurance + car insurance, leisure vehicle insurance + car insurance, etc…) from the same provider (savings of up to 15%)
• Increase your deductible
• Enrol in driving school (for young drivers)
• Pay auto insurance annually rather than monthly

Work with an insurance broker

If budget is a serious concern, enlist the help of a trusted insurance broker. BrokerLink’s team of expert insurance advisors is always available to help you find the best deal on Tesla car insurance. We know the industry intimately, and can introduce you to all the ways you can save money on car insurance. We can also help unlock discounts and compare quotes on your behalf, ensuring you receive the most competitive Tesla car insurance rate out there.

Ultimately, working alongside a BrokerLink insurance advisor is one of the best ways to save money on Tesla car insurance.

Contact BrokerLink for your Tesla insurance needs

Want to learn more about Tesla car insurance? You’ve come to the right place.

BrokerLink is the go-to brokerage for Tesla car insurance. We are one of the leading brokerages in Canada and have been committed to helping Canadians find quality car insurance since our inception over 30 years ago.

When you partner with BrokerLink, you will receive a dedicated insurance advisor who will help you every step of the way. We will obtain competitive quotes and compare them on your behalf to ensure you have the best coverage options and discounts available for your Tesla car insurance policy. BrokerLink is a customer-centric insurance brokerage that places customer needs first and takes the time to get to know you. From start to finish, we make you our top priority.

Contact us today, BrokerLink is pleased to offer free, competitive car insurance quotes to all Canadian drivers. Our insurance advisors are available to take your calls, answer your emails, or chat in person at one of our many locations throughout Canada.

Start your car insurance journey today.

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Tesla auto insurance FAQs

What is the least expensive Tesla model to insure?

Generally speaking, the less expensive the car, the less it costs to insure. At approximately $35,000, the Model 3 is the cheapest Tesla model available in Canada and is therefore likely to be the least expensive to insure. However, insurers consider a number of factors when calculating car insurance rates for Tesla vehicles. Even though the Model 3 is the cheapest model, it is still equipped with premium features, such as a large flat screen, no gear shift, and built-in sensors, all of which can be complex and costly to repair.

Ultimately, Tesla car insurance may not come cheap, but you could save money in other ways when purchasing a Tesla, such as at the gas pump. Tesla vehicles are also known for their superior safety features and long-lasting, durable construction, which may offer better protection in a collision.

Is it safe to buy Tesla car insurance online?

Shopping for Tesla car insurance can be daunting. With so many options out there, navigating the minefield of car insurance on your own can be stressful. That’s why we recommend using an insurance broker to buy car insurance. A trusted broker from BrokerLink will make sure you have the right car insurance for your needs with the best coverage for the best price.

*This article is in no way sponsored, endorsed, or associated with Tesla.