The Cheapest Tesla To Insure? It’s Not What You’d Expect
The Tesla Cybertruck costs 30% less to insure on average than a Model 3.
A key factor is that two-thirds of Cybertruck owners have excellent credit.
Even so, its insurance cost remains 45% higher than the national average.
You’d think the most affordable car in an automaker’s lineup would also be the cheapest to insure. Makes sense, right? Well, not for Tesla. In fact, it’s quite the opposite—the Cybertruck, that giant stainless steel wedge, is actually the least expensive Tesla to insure, with significantly lower rates than the entry-level Model 3 sedan.
According to a recent study compiled by Insurify, full-coverage insurance for the Cybertruck costs an average of $3,392 per year. That’s 45% more than the national average ($2,336) and 17% higher than the typical EV ($2,892), but still cheaper than insuring any other model in Tesla’s current lineup.
In fact, the Model 3 has the highest insurance rates in the Tesla lineup with an average of $4,347. That means insuring Tesla’s most affordable model costs 28% more than the Cybertruck, which starts at $79,990, even though the Model 3 is 53% cheaper to buy in its base form at $42,990 before federal and state credits, delivery fees, and taxes.
As for the rest of the pack, full-coverage insurance averages $3,510 for the Model S, $3,658 for the Model X, and $3,832 for the Model Y.
Insurance Costs Across Tesla and EV Models
Model
Starting MSRP*
Avg. Annual Cost Of Full Coverage
Share of Drivers w/ Excellent Credit
Ford F-150 Lightning
$62,995
$3,193
18%
Tesla Cybertruck
$79,990
$3,392
66%
Tesla Model S
$79,990
$3,510
34%
Tesla Model X
$84,990
$3,658
49%
Tesla Model Y
$44,990
$3,832
50%
Tesla Model 3
$42,490
$4,347
13%
EV Average
$56,351
$2,892
35%
National Average
$48,397
$2,336
13%
Source: Insurify / * Before tax credits
SWIPE
Why Is the Cybertruck Cheaper to Insure?
So, what’s behind this insurance pricing paradox? A big factor is credit scores. Insurify found that 66% of Cybertruck drivers have an excellent credit score, compared to just 13% of Model 3 drivers and 35% of EV drivers overall. The Model 3’s lower credit score average is likely tied to its mass-market appeal—Tesla sells a lot more of them, and its buyers tend to be younger and/or have riskier financial profiles.
In particular, half of Cybertruck owners (50%) are in their 40s, while only 14% of Model 3 owners fall into that age group. Since older drivers generally pose less of an insurance risk, this helps keep Cybertruck rates in check.
Even with its relatively low insurance costs, the Cybertruck still isn’t the cheapest electric truck to insure. That title goes to the Ford F-150 Lightning, which averages $3,193 per year or 6% less than the Cybertruck. The Lightning’s lower insurance costs are likely due to its more affordable starting price and cheaper repair costs, despite the fact that only 18% of Lightning owners have excellent credit (compared to the Cybertruck’s 66%).
Will Cybertruck Insurance Rates Stay Low?
That depends. If Tesla lowers the Cybertruck’s entry price, it could attract a younger, riskier demographic, which would likely push insurance rates higher. At the same time, rising EV repair costs could add even more pressure, making premiums climb further. Since EVs are already more expensive to fix than gas-powered cars, any increase in repair expenses could have an outsized impact on insurance pricing.
Broadly speaking, EVs cost more to insure because post-accident repair costs are 30% higher on average, and they’re more likely to be deemed total losses. Batteries, advanced sensors, and proprietary parts make even minor collisions costly. That trend isn’t unique to Tesla, but given its vehicles’ repair complexities, it’s a key factor in the company’s insurance rates.
For now, though, the Cybertruck remains an insurance outlier, one of the rare cases where a high-priced vehicle is cheaper to insure than its budget-friendly sibling. Whether that trend holds depends on how Tesla’s sales, pricing, and repair costs evolve in the years ahead.
