I’m on the market for purchasing a Tesla Model 3 LR but I’m having a huge problem when it comes to finding affordable insurance. I’ve talked to family members & colleagues & they said it’s most likely due to my age (22), I make 23 in January. I just wanted to ask is it due to age primarily or is it due to it being a Tesla? I’ve received quotes of $400+ from various companies.
It’s both.
Tesla’s (like all EV’s) tend to be more expensive than similarly sized ICE vehicles, thus the replacement and repair costs are higher. Add to that the higher likelihood of having to total out the car if you are in an accident compared to a similar ICE vehicle, then insurance companies may factor that into the premium rates.
Then the age is a demographic factor that insurance companies use to gauge potential insurance costs. Young drivers are more likely to get into accidents, than they charge more. If you’re male, then that is another hit since men tend to have higher accident rates than women.
Rates will typically drop as the vehicle value decreases and as you get older or a major life change happens that puts you into a different insurance demographic group.