Tesla Insurance auto insurance

Overview

Tesla Insurance is the car insurance program run by Tesla, Inc. for drivers of its vehicles. You buy, manage and claim on a policy in the Tesla app, and in every state except California the monthly premium is recalculated from data the car itself collects about how you drive. Tesla Insurance Services, Inc., based in Draper, Utah, is the agency that sells and services the policies.

The business ranked #36 among U.S. private passenger auto insurers by 2025 direct premiums written according to NAIC market share data, with $1.04 billion in premiums and a 0.28% share. The NAIC records it as the Tesla Inc Group, meaning the policies are written by Tesla-owned insurance companies. Tesla's 2025 annual report lists insurance subsidiaries including Tesla General Insurance, Inc. (Arizona), Tesla Property & Casualty, Inc. (California), Tesla Insurance Company (California) and Tesla General Insurance (TX). In California, Tesla also refers some customers to State National Insurance Company for quotes.

Tesla's annual report filed in January 2026 listed 13 states. By October 2026 Tesla's own support pages listed 15, adding Indiana and Tennessee: Arizona, California, Colorado, Florida, Illinois, Indiana, Maryland, Minnesota, Nevada, Ohio, Oregon, Tennessee, Texas, Utah and Virginia.

History

Tesla launched its insurance product in California in August 2019, saying it offered rates that were often better than alternatives as part of an effort to lower the total cost of owning a Tesla. In 2021 it launched insurance priced on real-time driving behavior in select states, built on the Safety Score that Tesla vehicles calculate. Expansion since then has been gradual, state by state, and Tesla says it plans to add markets.

California remains different. Tesla Real-Time Insurance is not offered there, and California policyholders can view a Safety Score for educational purposes only; it does not affect their premium. California's rating rules under Proposition 103 are stricter than most states' about which factors insurers may use. In August 2025 the California Department of Insurance approved a 12.4% general rate increase for Tesla Insurance in the state, applied to policies starting on or after August 11, 2025, and certain coverage limits were discontinued at renewal.

Auto insurance coverage

Tesla Insurance offers the standard coverages, with limits and deductibles that vary by state: bodily injury and property damage liability, collision, comprehensive, uninsured/underinsured motorist, medical payments or personal injury protection where offered, rental reimbursement and roadside assistance. Optional auto loan/lease gap coverage pays the difference between what you owe and the car's actual cash value after a total loss or theft.

Policies are designed around Tesla vehicles, but in California customers can add or quote vehicles not made by Tesla; those cars do not get a Safety Score.

Discounts and programs

Tesla Real-Time Insurance sets your premium each month from the car you drive, where it is garaged, how many miles you drive, the coverage you choose and your Safety Score. New customers start with an assumed score of 90. After that, the premium uses a mileage-weighted average of the car's daily Safety Scores over the previous 30 days, so a higher score and fewer miles mean a lower bill. Tesla notifies you of the new monthly premium in advance. Unlike many usage-based programs, no add-on device is needed, because the car's own sensors and software supply the data.

The Safety Score (0 to 100) combines several measured factors: hard braking above 0.3g, aggressive turning above 0.4g, unsafe following distance at 50 mph or more, excessive speeding (over 85 mph, or 20% faster than the car ahead), late-night driving between 11 p.m. and 4 a.m., forced Autopilot disengagements and unbuckled driving. Braking, turning, following and speeding while Autopilot is engaged are left out of the calculation. Tesla publishes the formula, which converts a predicted collision frequency into the score.

Other discounts vary by state and include a discount for driving with Full Self-Driving (Supervised) engaged in select states, multi-car, Tesla employee group, good driver and elite driver (California), mature or defensive driving courses, airbags, antilock brakes and anti-theft devices. The Tesla Insurance guide and the telematics privacy guide cover what this data use means for you.

Claims

The fastest way to file is in the Tesla app (Menu, Tesla Insurance, Start New Claim), which also lets you request roadside assistance, review repair estimates and book service. By phone, claims go to 1-844-34-TESLA (844-348-3752), weekdays 6 a.m. to 5 p.m. Pacific. Documents can be emailed to the claims team with your claim number or mailed to Tesla Insurance Claims, PO Box 4000, Draper, UT 84020.

Repairs can be done at Tesla Service Centers, approved third-party shops or a shop of your choice. Rental cars are arranged by email once an adjuster approves coverage. If another party was at fault, Tesla's recovery team tries to recover your deductible through subrogation. Tesla also collects vehicle data to help settle claims and fight fraud.

Ratings and reputation

Tesla Insurance does not publish a financial strength rating for its insurance companies on its support pages. Tesla has sold insurance only since 2019, so its track record is short compared with most carriers in the top 40. Prospective customers who want an independent view can ask which entity will issue their policy and look it up with their state insurance department.

The biggest reputational question is data use. Pricing depends on continuous driving data, and premiums can change monthly. Cars that stop reporting data for 60 consecutive days are treated as unconnected vehicles. Some states cap how much Safety Score changes can move the premium.

Who it suits

Tesla Insurance suits Tesla owners in one of the 15 available states who drive calmly, avoid late-night trips and want everything in the Tesla app. It suits poorly anyone who drives aggressively by the Safety Score's definitions, often drives late at night for work, or prefers a stable annual premium and an in-person agent. Compare quotes with telematics programs from carriers such as Progressive and Root, since EV repair costs make price differences large.

• Strengths: Pricing based on actual driving rather than many traditional factors; transparent published Safety Score formula; no add-on device; integrated app claims, roadside and repair booking; FSD usage discount in select states.
• Weaknesses: Only 15 states as of October 2026; real-time pricing not available in California; premiums can change monthly; no published financial strength rating; phone claims line keeps weekday business hours only.

How to contact Tesla Insurance