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.
