The Tesla Model 3 is a popular electric car. In fact, it was the best-selling electric vehicle in 2020. This is the smallest and cheapest Tesla available to buy, but it offers far better acceleration and driving range than other electric entry-level models. In this guide, you’ll find out how much it costs to insure a Tesla Model 3 based on the age and location of the driver.
What insurance group does the Tesla Model 3 fall under?
All vehicles are given a specific insurance group that ranges from 1 (cheapest) to 50 (most expensive) which helps determine the cost of your premium. Tesla Model 3 models range from insurance group 48 to 50, meaning they’re among the most expensive cars to insure. As an example, a 30-year-old driver in an average postcode could pay around £2,354 for cover on a Tesla Model 3 Standard Range Plus auto 4d that is in insurance group 48 or around £2,537 for a Tesla Model 3 Long Range auto 4d that is in insurance group 50. This clearly shows the impact on premium pricing that occurs when one car is in a much higher insurance group.
These rates are based on the average cost of cover for cars in the insurance groups shown, for drivers of different ages with a Newcastle (NE1) postcode, which our research suggests represents an average for insurance rates in the UK. Updated: June 2024 (source: Confused).
Tesla Model 3 insurance cost by location
Among the factors that affect the cost of your car insurance premium, one of the biggest is your location.
To show the impact of your home address, here are some average quotes for a 30-year-old living in three different locations. The quotes are for a Tesla Model 3 Standard Range Plus auto 4d.
Expensive: £5,307 (London SE1)
Average: £2,354 (Newcastle NE1)
Cheap: £1,930 (Galashiels TD1)
These rates are based on the average cost of cover for cars in the locations shown. Our research suggests SE1 is one of the most expensive locations, NE1 represents an average cost location and TD1 represents one of the cheapest locations. Updated: June 2024 (source: Confused).
Which factors affect my Tesla Model 3 insurance rate?
Along with insurance group, there are many other key factors that have a big impact on your insurance premium costs:
Engine type and capacity. In general, the larger the engine, the more you’ll pay for your car insurance. For example, it may cost £5,307 for insurance for a Tesla Model 3 Standard Range Plus auto 4d, while you may pay £5,145 for a Tesla Model 3 Long Range auto 4d. So, that’s an extra £15 per year you’ll pay for the Long Range engine.
Driver location. Insurers use your home address to determine the level of risk that your car may be stolen or involved in an accident, and this affects the cost of insurance. For example, a 30-year-old in central London may pay £5,145 for insurance for a Tesla Model 3 Long Range auto 4d, while the same 30-year-old in Newcastle may only pay £2,537. That’s an extra £83 per year that the average 30-year-old would pay in London compared to Newcastle.
Driver age. The youngest drivers will pay the most for car insurance because they are the most likely to make a claim. As an example, the average 20-year-old driver in London may pay £32,809 for the Tesla Model 3 Standard Range Plus auto 4d, while the average 40-year-old Londoner will only pay £3,606. That’s £1,023 more per year that the younger driver would pay in this scenario.
Other factors that influence the cost of your insurance include:
Car insurance can be expensive, but you don’t need to let it break the bank. Here are some ideas to help you lower the cost of your premium.
Limit your annual mileage (where possible). If you can occasionally walk or use public transport, rather than using your car, this can help to save on your premium.
Pay annually rather than monthly. When you pay annually, you eliminate the possibility of being charged interest on monthly payments.
Install extra safety precautions. This makes you car safer and reduces the risk of you making a claim on your premium. That’s why many insurers are happy to lower your premium when you do so.
Shop around for the best deal using price comparison websites. Don’t just settle for the renewal price given to you. You’ll usually find a better deal by switching to a competitor each year.
Bottom line
This was the best-selling electric car of 2020 for a good reason. It provides an enjoyable drive combined with environmental deity. The key downside is the horrifically expensive insurance costs, but the tips in this guide will help you to reduce your premiums.
Frequently asked questions
Depending on the model version, you can expect a Tesla Model 3 to reach a top speed of 162 miles per hour.
In its Euro NCAP crash tests, this vehicle achieved a full 5-star rating. This rating included a 96% rating for protecting adult occupants and 86% for protecting child occupants.
The UK standard car tax rate sits at £150 per year. However, you might pay more or less depending on your car’s emissions.
You can buy a Tesla Model 3 at dealerships, using online sellers or from a current owner.
In short, yes. The Tesla Model 3 received a maximum 5 star rating from What Car? who praised its superior performance and drive.
You can compare the costs of Tesla Model 3 car insurance using any price comparison website.
The Tesla Model 3 can be found in insurance groups ranging from 48 to 50. This means they’re among the most expensive cars to insure.
*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (Mar ’24). 51% of car insurance customers could save £539.54
The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Danny is a publisher at Finder specialising in insurance and investing. He previously worked at the global insurer Aon and has appeared in national media giving advice on insurance. Danny holds a BA in International Business from the University of Plymouth and has undying loyalty to his average-poor football team, Portsmouth FC. See full bio
Danny's expertise
Danny has written 369 Finder guides across topics including:
Find out how agreed value car insurance works and if it’s the right option for you.
Feedback
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
