Is full coverage worth it for a 3-year-old Tesla?
Yes. Keep full coverage on your 3-year-old 2023 Tesla Model 3 if the yearly premium hits 10% or less of the car's value. Most Model 3s from 2023 now sell for $28,000 to $35,000. Full coverage costs run $3,000 to $3,200 a year in many cases. That keeps pace with the car's worth, especially since Tesla repairs cost a lot.
Full coverage includes liability, collision, and comprehensive. You need liability in every state. It covers injuries and damage you cause to others. Collision fixes your Tesla after a crash you cause. Comprehensive handles theft, fire, hail, vandalism, or falling objects.
Tesla repairs add up fast. A bumper or fender fix with sensors hits $3,000 to $5,000. Cameras, glass, and radar calibration push costs higher. Battery damage can top $15,000 to $20,000. A medium crash often exceeds $10,000. Liability-only saves money up front, but you pay those bills yourself.
Your lender demands full coverage if you have a loan or lease. Once paid off, weigh the car's value, your premium, and your savings. Stick to the 10% rule. At $30,000 value, spend no more than $3,000 a year on collision and comprehensive.
| Coverage Type | Yearly Cost | What It Covers |
|---|---|---|
| Liability Only | $1,760 | Injuries and damage you cause others |
| Full Coverage | $3,200 | Liability plus collision and comprehensive on your Tesla, minus deductible |
Drop to liability-only and save $120 a month, or $1,440 a year. You take the hit for your own repairs or total loss. At-fault crashes also spike rates 50% to 100%.
Here are steps to decide:
- Grab three insurance quotes. Rates change by ZIP code, miles driven, and record.
- Check your Model 3's value on KBB or Edmunds. Test the 10% rule on quotes.
- Raise deductibles from $500 to $1,000 to lower costs. Keep coverage.
- Drop collision but keep comprehensive. It costs less and covers theft, weather, and glass.
- Hunt discounts for safe driving, telematics, multi-policy, or low miles.
- Verify lender rules. Add gap insurance if loan exceeds value.
Sidekick tracks your insurance costs and car value. It alerts you when to drop collision or raise deductibles.