Tesla insurance Canada

About Tesla

Tesla was founded in San Carlos, California, in 2003 and is now led by its well-known CEO, Elon Musk. The company's first car, the Roadster, debuted in 2009. Since then, Tesla has introduced several models, including the Model S sedan, Model X SUV, Model 3 sedan, and Model Y crossover.

Tesla is currently the fastest-growing brand in the world and a leader in electric vehicles. Its global EV sales keep rising, with vehicle deliveries hitting 444,000 in July 2024. In 2021, the Model 3 made history as the best-selling plug-in electric vehicle ever. However, since then, the Model Y has overtaken the Model 3 to become the best-selling electric vehicle.

Tesla is not only recognized for its eco-friendly cars but also for leading the way in autonomous driving technology. The company has been developing self-driving and semi-autonomous software for years, and all new Tesla vehicles are equipped with the hardware needed for future full self-driving capabilities.

Telsa car insurance

No matter which Tesla model you choose, you’ll need to buy car insurance to go with it.

When it comes to insurance, Tesla now offers its own in-house auto coverage but it is only available in the United States. In Canada, Tesla insurance is underwritten by Aviva Canada and called InsureMyTesla. It's a special Tesla insurance policy made just for Tesla owners in Canada. It offers tailored protection, including comprehensive coverage and other features designed for Tesla drivers.

Your Tesla insurance requirements will depend on your province and the level of coverage you want. Here are some of the most common types of auto insurance coverage for Telsas:

Third-party liability coverage

Third-party liability insurance is required across Canada and helps protect you from costs if you're found responsible for an accident that causes injury or property damage. It can also help cover legal fees and court costs if needed.

Accident benefits coverage

Accident benefits coverage is mandatory throughout Canada. It covers medical expenses for you, your passengers, or even pedestrians after an accident, no matter who is at fault. This allows the policyholder to seek compensation for medical care through the coverage.

Uninsured automobile coverage

Uninsured automobile coverage is mandatory in many Canadian provinces, but not all of them. It protects you and your passengers if you're in an accident caused by a driver who doesn't have enough insurance or none at all.

Direct compensation-property damage coverage

If you're injured or your car is damaged in an accident that wasn’t your fault, direct compensation coverage steps in. With this coverage, you file a claim directly with your insurance company to get compensated if you live in a no-fault insurance province.

Collision coverage

Many Canadian drivers choose to add collision coverage to their Tesla insurance. This coverage protects you if you're in an accident with another vehicle or object, regardless of who’s at fault. It covers damage to your car but doesn’t cover injuries—that’s handled by the accident benefits part of your policy.

Comprehensive coverage

For protection beyond just car accidents, you might consider getting comprehensive coverage. This type of insurance helps cover things like theft, vandalism, fire, water damage, and more. Keep in mind that comprehensive coverage is optional.

Accident forgiveness coverage

If you choose Tesla car insurance with accident forgiveness , your rates won’t go up after your first at-fault accident. Like comprehensive coverage, accident forgiveness is optional, but it can be worth it to help protect your premiums.

Tesla car insurance premiums

Insuring a Tesla can be pricier than other cars. While Teslas have advanced safety features, their repair costs tend to be higher. Factors like the model you drive, where you live, your driving history, and the coverage you select will all play a role in determining your insurance costs. For example, Ontario drivers can expect their yearly premium, on average, to be anywhere from $2,000 to $5,000 or more.

On top of that, because Teslas tend to have a higher value, some insurance companies may require you to carry a higher deductible, like $2,500, instead of the more common $500 or $1,000.

Tesla cars also come with a few unique factors that can affect your insurance rates. The advanced technology and parts are more expensive than those in traditional cars, leading to higher repair costs. And since not all mechanics are trained to work on Teslas, you’ll likely need a specialized, and often pricier, mechanic.

When you're shopping around for Tesla car insurance quotes, it's best to get several quotes from multiple insurance companies to get a better idea of how much your insurance premiums will cost.

You can either do this yourself or work with an insurance brokerage like BrokerLink, where our Telsa car insurance brokers will do all the work for you. We'll shop around and compare Tesla car insurance quotes to find you the one that best meets your needs and budget.

Factors that affect Tesla car insurance rates

As we mentioned earlier, several factors play a role in determining auto insurance rates. From local laws to your driving history, let’s take a closer look at the most common factors used to calculate car insurance for Tesla owners:

Your driving experience and record

Your driving experience and record are two of the biggest factors in determining your Tesla insurance rate. Generally, the more driving experience you have, the better your rate will be. This is why younger drivers often face higher premiums due to their lack of experience.

However, experience alone won’t lower your insurance rate—you also need a clean driving record. A clean record shows insurance companies that you’re a safe and responsible driver. On the flip side, if you have speeding tickets, accidents, or DUIs on your record, you’ll likely pay more for insurance.

The model and year of your Tesla

The Tesla model you choose can also affect your insurance cost. Typically, the more expensive the car, the higher the insurance since repairs and parts are pricier. Opting for a less expensive Tesla model could help you save on insurance.

How long you’ve owned your Tesla

The length of time you've owned your Tesla can affect your insurance costs. On your insurance policy’s declarations page, you’ll need to list anyone else who drives the car, usually a partner or family member in the same household. If multiple people have shared the car for years without any accidents, this looks good to insurance companies, showing that you're all safe and responsible drivers.

However, if you buy new cars every year and everyone in your household has their own vehicle, you might end up paying higher premiums.

Your age

Your age is another factor that affects your Tesla insurance rate. Since insurance companies link age with risk, they always consider it when calculating premiums. Younger, less experienced drivers and older drivers may be seen as having higher risk, based on statistics, so both groups may end up paying more for Tesla insurance.

Your location

Where you live and work also impacts your insurance costs. If you're in a busy city like Toronto or Vancouver, you’ll likely pay more due to the higher traffic and increased chances of accidents, especially during rush hour. On the other hand, if you live in a rural area, you might get lower rates. Additionally, if you live in an area prone to weather-related issues like floods, you could see higher insurance costs for your Tesla.

Your annual mileage

How often you drive is another factor insurance companies look at when determining your rate. If you only drive your Tesla occasionally, like a few times a week or just on weekends, your insurance could be lower. On the other hand, if you're on the road a lot—whether for work, night driving, or frequent highway trips—your premium might be higher.

Local laws

Each Canadian province and territory has its own car insurance rules. To make sure your Tesla insurance meets the legal requirements, you'll need to check the minimum coverage for where you live. In general, the higher the required coverage, the more expensive your insurance will be.

Ways to save money on your Tesla car insurance

As we explained earlier, insuring a Tesla can be pricier than other cars. But that doesn't mean you can't find ways to save on your insurance rates! Our BrokerLink brokers have put together the following tips to help you find more affordable Tesla car insurance:

Shop around for Tesla car insurance quotes

Not all insurance companies weigh their factors the same when determining your insurance premiums. So, when you're looking for Tesla car insurance, it's a good idea to get quotes from multiple insurance companies. This will help you get a clearer picture of what your premiums will cost and provide you with multiple quotes to choose from.

Bundle your home and auto insurance

If you have other things to insure, like a home, cottage, boat, or RV, you can bundle these with your Tesla car insurance and save 15% or more! Bundling also helps simplify your paperwork by keeping all your policies in one place.

Increase your deductible

Your deductible is the amount you pay out of pocket before your insurance company covers the rest of a claim. One way to lower your auto insurance premium is to raise your deductible. We know we mentioned before that some insurance companies already require you to have a very high deductible if you own a Tesla, but if your insurer doesn't, then raising it can help reduce your premium.

Ask about a green vehicle discount

Many insurance companies now offer discounts to policyholders with electric or hybrid vehicles. These discounts vary by provider but can be as high as 10% just for driving your Tesla.

Practice safe driving

Many insurance companies offer Usage-Based Insurance (UBI), also known as telematics. These programs let insurers offer premium discounts based on your safe driving habits. And speaking of safe driving habits, having a clean driving record may qualify you for a safe driver discount.

Choose a cheaper model

Remember, your insurance costs will depend on the Tesla model you drive. To save on insurance, consider choosing a more affordable model or even buying a used one.

Work with an insurance broker

If you're worried about your budget, working with a trusted insurance broker can be a great option. BrokerLink’s team of expert advisors is here to help you find the best deal on Tesla car insurance. We know the industry inside and out and can show you all the ways to save money. We’ll also help you find discounts and compare quotes, making sure you get the most competitive rate. In the end, partnering with a BrokerLink insurance advisor is one of the smartest ways to save 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.

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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.

If you have any questions, contact one of our local branches.