Tesla Model 3: How Cheap is the Car Insurance
When it comes to purchasing a new car, especially a high-performance vehicle like the Tesla Model 3, one of the most common questions people ask is: how cheap is the car insurance? Car insurance prices can vary widely depending on various factors, including the type of vehicle, the age of the driver, where the car is parked, and even the driver’s job. For young drivers, particularly those in their twenties, this question can be especially challenging to answer. Insurance quotes can sometimes seem astronomical, with some young drivers reporting quotes as high as £36,000 – which, as you can imagine, is nearly as much as the car itself!
So, if you’ve been wondering how much insurance might cost for your Tesla Model 3 in the UK, this article will walk you through the details of my own insurance experience, the factors that influence the cost of Tesla insurance, and some tips on how to lower those premiums.
The Cost of Car Insurance for a Tesla Model 3 in the UK
Let’s get straight to the numbers. For my Tesla Model 3, I’m paying £2,070.88 for a full 12-month policy. While this may sound high to some, it’s important to note that the Model 3 is a powerful car with impressive features, and at 24 years old, I’m considered a young driver, which always impacts the cost of insurance.
For comparison, when I had my first car (a Citroën C1), my insurance was £1,500 for the first year. As a young driver, I’ve come to expect that insurance premiums will be higher, especially for more expensive cars like the Tesla. The premium for a Tesla Model 3 is definitely on the higher end of the spectrum, but considering the vehicle’s value, performance, and my age, it’s not surprising.
Factors Influencing Insurance Costs
Several factors influence the cost of car insurance for any vehicle, and this holds true for a Tesla Model 3 as well. Here are some of the key factors that influenced my quote:
- Age and Experience of the Driver:
At 24 years old, I’m still considered a “young driver,” which is one of the most significant factors in determining my insurance premium. The younger the driver, the higher the premium, as statistics show that young drivers tend to be involved in more accidents. Insurance providers take this risk into account when calculating premiums. - Type of Tesla Model:
The Tesla Model 3 comes in different versions: the Standard Range Plus, Long Range, and Performance models. Since I opted for the Standard Range, which is the most affordable option, my insurance is lower compared to the Performance or Long Range variants. The Performance Model 3, in particular, has more horsepower and is capable of accelerating from 0-60 mph in just 3.1 seconds, making it a higher risk for insurers. - Your Location:
Where you live plays a major role in determining your car insurance rate. Areas with high crime rates or high traffic accidents may result in higher premiums. In the UK, urban areas tend to have higher insurance costs due to the increased risk of accidents and theft. - Vehicle Security Features:
Teslas come with a range of advanced security features, including an app-based security system, automatic locking, and GPS tracking. These features can lower the risk of theft and vandalism, potentially lowering the insurance premium. In fact, Tesla has a vandalism promise that covers damage caused by acts like keying, which is reassuring to Tesla owners who worry about their car being targeted by vandals. - Excess Amounts:
One of the first things I had to consider when setting up my insurance policy was the excess amount. The excess is the amount you must pay out of pocket before the insurance kicks in. DirectLine, my insurer, set a mandatory excess of £500, which is standard for many policies. However, because I’m a young driver, I was also given a “young driver’s mandatory excess” of £250, bringing the total excess I would need to pay to £750. Initially, DirectLine offered me the option of a voluntary excess of £400, but after some consideration, I opted to reduce this to zero. While this increased my premium slightly, from £1,840 to £2,070.88, it lowered the amount I would need to pay out of pocket if I had to make a claim. - Annual Mileage:
Your annual mileage also affects the price of car insurance. Since I work from home and don’t drive long distances, my estimated annual mileage is around 9,000 miles. If you drive significantly more, say over 12,000 miles a year, you can expect to pay more for insurance, as the higher the mileage, the higher the risk of accidents. - Other Personal Details:
The insurance company will also ask for other details, such as your job. I’m listed as a company director, which can sometimes increase the premium due to the perceived risks associated with certain job titles. Even where you park your car—whether it’s on the street or in a secure garage—can impact your rate. - Optional Coverage:
Additional coverage, such as motor legal protection or windscreen replacement, can add to your premium. In my case, I opted for motor legal protection, which costs an additional £28 per year. This coverage helps protect me in the event of a legal dispute following an accident.
Understanding Tesla Insurance in the UK
Tesla owners in the UK often find that their insurance premiums are higher than for other cars, mainly due to the cost of repairing and replacing parts in electric vehicles. Teslas are expensive to repair, and due to their unique parts and technology, they often require specialized repair shops and trained technicians, which can drive up repair costs.
Additionally, the performance capabilities of a Tesla, such as its rapid acceleration and high speed, make it more likely to be involved in accidents, particularly if the driver is inexperienced or not paying attention. As a result, insurers consider these factors when calculating premiums for Tesla models.
Tesla’s popularity also plays a role in the insurance cost. As more Teslas hit the road, the risk of accidents and theft increases, which can result in higher premiums for all Tesla owners. However, despite these risks, Teslas are also equipped with advanced safety features like collision avoidance, which may help reduce the likelihood of accidents and could lower premiums to some extent.
Can You Reduce Your Insurance Premium?
While car insurance premiums for a Tesla Model 3 are generally on the higher side, there are ways to reduce your insurance costs. Here are some tips:
- Increase Your Excess:
By increasing your excess (the amount you pay out of pocket in the event of a claim), you can lower your premium. However, this is a balancing act—too high an excess and you may end up paying more than you’re comfortable with if an accident occurs. - Improve Your Driving Record:
If you have a clean driving history, you may be able to negotiate a lower premium. Additionally, maintaining a good credit score can help lower your insurance costs, as insurers often use credit-based insurance scores to determine rates. - Install Additional Security Features:
Some insurers offer discounts for cars equipped with additional security features. If you’ve installed extra alarms or tracking systems, it’s worth informing your insurer to see if you qualify for a discount. - Shop Around for the Best Deal:
Don’t settle for the first insurance quote you receive. Use comparison websites and get quotes from multiple insurers to find the best price. Tesla’s recommended insurer, DirectLine, may be the best option, but it’s always worth comparing prices.
Conclusion
So, how much is car insurance for a Tesla Model 3 in the UK? For me, the cost is £2,070.88 for 12 months, which is relatively high given my age and the car’s value. However, with factors like the car’s high repair costs, my young age, and the additional coverage I selected, the cost is understandable. If you’re a young driver thinking about purchasing a Tesla Model 3, be prepared for a premium that is higher than average, but also keep in mind that shopping around and adjusting your policy can help reduce that cost.
