Does Tesla Insurance Cover Rental Cars? (Explained)

Like every other vehicle, EVs like Tesla also need repairs sometimes. In other cases, you may need to fix your Tesla due to an accident.

Whichever way, you need a spare car to move around while your car is in repair. Most vehicle insurance policies allow car owners to rent cars during this period.

However, determining if this applies to Tesla insurance can be challenging, especially due to its nature as an electric vehicle.

Tesla Insurance may cover rental cars if this is part of your chosen policy. The car rental service varies according to each Tesla’s insurance policy. It also depends on other factors like the coverage limit and covered claim. Tesla’s insurance for each model is quite expensive. Therefore, it is essential to understand your insurance policy and claim rights.

In this article, I will help you know if Tesla insurance covers car rentals, the insurance company handling Teslas, and how expensive it is to insure Teslas.

By the end, you’ll also know the most expensive Tesla model to insure and the benefits of insuring your Tesla vehicle.

Does Tesla’s Insurance Cover Rentals?

Does Tesla Insurance Cover Rental Cars

Tesla insurance may cover rentals or not, depending on the specifics of your insurance policy. Different factors determine your insurance policy.

Here are the determinants:

#1. Type of Policy

Your policy may cover car rental or not, depending on the type you have. A standard Tesla insurance policy will make car rental an optional option.

You may decide to include this in the policy or not. On the other hand, a car purchase and Tesla insurance policy bundle may cover rentals.

So, you must confirm the type of policy you have to determine if your insurance covers rental.

#2. Limit of Coverage

Your Tesla insurance may cover rentals, but this may have a limit. This will determine the extent of the rental service.

For example, the insurance may cover car rental for a specific number of days or a rental car up to a certain amount of money per day.

#3. Covered Claim

Tesla insurance only covers car rental if your Tesla is going through a repair or replacement due to a covered claim.

Outside these valid reasons, you may not get rental car coverage. A Tesla undergoing routine maintenance or other reasons outside the covered claim may not be eligible.

You can review your insurance policy or check with Tesla Insurance customer support to confirm if your insurance covers car rental.

Make sure to inquire about the limits and restrictions that may apply to the rental service. This will help you know the determinants of your car rental coverage.

An extensive Tesla insurance may make you eligible for the cost of renting a “like-for-like” vehicle. This means a vehicle almost similar to the one you have in repair.

You can get this even without selecting your policy’s “Hire Car” option.

The insurance company will cover the major expenses if you make an “At-fault” claim against a third party after a car accident.

They will cover the damages caused by the accident, car rental services, and personal injuries incurred.

A good insurance policy and compensation depends on the company handling your insurance, so it is best to know the right insurance company to use for your Tesla.

Which Insurance Company Handles Tesla’s Insurance?

Tesla partners with the State National Insurance Company to handle their insurance; this company is a subsidiary of Markel Corporation, a giant in the insurance market.

Tesla insurance effectively serves Tesla owners to fulfill their demands. However, it is only available in 12 states.

These include:

  1. Arizona
  2. Texas
  3. Colorado
  4. California
  5. Maryland
  6. Nevada
  7. Illinois
  8. Minnesota
  9. Oregon
  10. Ohio
  11. Virginia
  12. Utah

Drivers outside these states must pick up normal car insurance from another company. In addition, Tesla owners can add non-Tesla vehicles to their insurance plans.

This means the company will provide similar plans for other car models. As easy as this sounds, the insurance policy has advantages and disadvantages.

The table below outlines the pros and cons of Tesla insurance.

Every Tesla vehicle automatically falls under the insurance planIt is only available in a few selected states
Tesla owners can easily get an insurance planIt is expensive for non-Tesla vehicles
It is cheaper for Tesla ownersSome policies don’t cover car rental
It integrates into the Tesla app

Is Tesla Insurance Expensive?

Tesla insurance is more expensive than other car insurance due to its high repair cost. Repairing a Tesla requires a lot of money, especially one which collided with another vehicle.

The average cost of a new Tesla vehicle insurance is $3,947 yearly. However, this price varies according to the car model.

In addition, the insurance cost depends on your Tesla model and several other factors.

This includes your location, chosen trim, driving history, and your selected amount of coverage.

Here is a detailed explanation of Tesla insurance cost according to each model:

#1. Model 3

The Tesla Model 3 has the least expensive insurance. The price is $3,209 per year for the latest model 3.

This goes at the rate of $267 per month. This price may vary in other trims of the Model 3 and according to the company’s decision.

#2. Model Y

The Tesla Model Y has the cheapest insurance. The average cost for the base trim is $3,057 yearly. The Model Y is the cheapest because of its design.

It is a compact crossover vehicle, which makes repair costs and spare parts more affordable.

#3. Model X

The Model X is also expensive to insure at an average cost of $4,275 annually. However, you can get it cheaper through the Tesla insurance program.

Their program offers it at the yearly rate of $2,095.

#4. Model S

The Model S is the foundation of Tesla’s mass production. Its insurance is also the most expensive, at an average of $4,956 yearly.

As expensive as this model’s insurance seems, the high-end Model S has the least expensive insurance compared to the base model.

Both trim insurance have a difference of $93 per year.

Irrespective of your Tesla model, it is best to always insure the vehicle through the company’s program.

This makes it cheaper to buy and easier to lay claims on anything covered in the policy.

What Is the Most Expensive Tesla to Insure?

The Tesla Model S is the most expensive to insure due to its design and technology. In addition, its repair costs more due to some additional features.

However, each Model S trim has a different insurance cost. This depends on their design and year of production.

The table below outlines the average insurance cost for different Model Ss according to their trims and production year.

Production yearModel TrimMonthly Cost
2019Long range$383
2020Long range$395
2021Long range$405
2022Long range$413

Please note that these prices might vary depending on the insurance company, insurance policy, and driving habits.

Your location can also be a determinant of the price. So, it would be best to consider all these factors when getting Tesla insurance.

In addition, it is best to read the insurance policy thoroughly to know what it covers and when you can lay claims.

This will help you know if your insurance covers car rental while your Tesla is in repair.

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