Who is Tesla?
Tesla is an American company that had around a 12% market share of electric vehicles in 2022. The top two best-selling all electric cars in the UK in 2022 were the Tesla Model Y and the Tesla Model 3, according to the Society of Motor Manufacturers and Traders.
Tesla also designs and manufactures solar panels and solar roof tiles alongside batteries for energy storage.
It runs its own small but geographically wide Supercharger network to allow you to stay charged on the go, with a 15-minute charge giving you a range of up to 172 miles. You can also charge your car at any publicly available charging station.
The company was formed by engineers Martin Eberhard and Marc Tarpenning in 2003. Elon Musk joined Tesla in 2004 after investing substantially in the business. It is now known as one of the world’s most valuable companies. It’s named after one of the pioneers in electricity, physicist Nikola Tesla.
How much does a Tesla cost to insure?
The cost of your insurance will depend on a number of factors, including your age, address, driving history and the exact model you own.
What type of car insurance do I need?
With the outlay for a top of the range Tesla coming in at around £125K+, you’ll want to make sure your investment is protected.
- Comprehensive insurance provides the highest level of cover for your Tesla and can be the cheapest option for many drivers. It covers fire, theft and damage to your own car, no matter who is at fault.
- Third party, fire and theft car insurance covers you for those three situations, meaning it won’t pay out if your own car is damaged in an accident.
- Third-party car insurance is the legal minimum level of car insurance. It covers you if you damage another person’s car or injure someone while you’re driving, including your own passengers. If an accident is your fault, you won’t be covered for your own injuries or any damage to your car. This can often be the most expensive type of insurance.
Comprehensive policies can vary in terms of the additional cover they include. Some policies offer extras as standard, while others charge you to add them on.
Some providers may offer different tiers of policy. A platinum policy, for example, may offer more cover built in as standard and higher potential pay-outs than, say, a bronze policy offering basic comprehensive cover.
How can I cut the cost of my Tesla car insurance?
All car insurance is based on a number of factors. Optimising these can make your insurance cheaper. For example:
- Driving safely and building up a no claims discount
- Driving less – the higher mileage you do, the higher the premium as there’s more chance of being involved in an accident
- Keeping your Tesla in a secure garage overnight
- Paying annually is often cheaper than paying monthly as there are no interest charges.
Shopping around and comparing prices helps too. But make sure you are comparing like with like. Some policies may cost less but also offer less cover. So check to make sure any policy covers what you need.
Frequently asked questions
What are the advantages of electric vehicles?
As well as reducing emissions and a driver’s carbon footprint, electric cars like the Tesla can be cheaper to run. A full charge is likely to be much cheaper than the equivalent full tank of petrol or diesel.
With fewer moving parts, they have the potential for having lower servicing and maintenance costs too. But against that you will also need to consider battery life and replacement.
Zero emissions vehicles will still be able to enjoy cleaner vehicle discounts for congestion charges – and even free or subsidised parking in some places.
Do all insurance providers offer electric car cover?
Most of them do, but not all. As more people are buying electric cars, more insurance providers are offering insurance for them too.
This is potentially good news. More providers wanting your business can help keep prices competitive.
What happens if I use my Tesla for work without business insurance?
If you use your Tesla for work-related activities, and you don’t have the right business car insurance, you won’t be covered. You’ll essentially be an uninsured driver.
Driving without proper insurance is illegal. The penalties if you’re caught are that the police could give you a fixed penalty of £300 and six penalty points. If the case goes to court, you could you be disqualified from driving and get an unlimited fine. It’s just not worth taking the risk.