The Most Affordable Tesla to Insure? It’s Not What You Might Think | Carscoops

      Tesla's priciest model is surprisingly the most economical to insure across its entire range.

      The Tesla Cybertruck, on average, has insurance costs that are 30% lower than those of the Model 3. A significant reason for this is that two-thirds of Cybertruck owners possess excellent credit scores. Nonetheless, its insurance premiums are still 45% higher than the national norm.

      One might assume that the least expensive vehicle from a manufacturer would also require the lowest insurance costs. That seems logical, right? However, this isn't the case for Tesla. In fact, it's the opposite; the Cybertruck, that enormous stainless steel wedge, is the least costly Tesla to insure, with rates much lower than those for the entry-level Model 3 sedan.

      As reported by a recent Insurify study, the average full-coverage insurance cost for the Cybertruck is $3,392 annually. This is 45% above the national average of $2,336 and 17% higher than the typical EV cost of $2,892, yet still less expensive than insuring any other Tesla model available today.

      The Model 3, in contrast, has the highest insurance rates in Tesla's lineup, averaging $4,347. This means that insuring the most affordable Tesla model costs 28% more than the Cybertruck, which has a starting price of $79,990, despite the Model 3 being 53% cheaper to purchase at $42,990, before accounting for federal and state credits, delivery fees, and taxes.

      For the other models, the average insurance costs are $3,510 for the Model S, $3,658 for the Model X, and $3,832 for the Model Y.

      What accounts for the Cybertruck's lower insurance rates?

      What explains this paradox in insurance pricing? A significant factor is credit ratings. Insurify found that 66% of Cybertruck owners have an excellent credit score, in contrast to just 13% of Model 3 owners and 35% of all EV drivers. The lower average credit rating for Model 3 drivers is likely tied to its appeal to a broader market—Tesla sells many more of these vehicles, and its customers tend to be younger and/or have higher financial risks.

      Specifically, 50% of Cybertruck owners are in their 40s, while only 14% of Model 3 owners are in that age bracket. Because older drivers are generally considered to be lower risk for insurance, this contributes to the more favorable rates for the Cybertruck.

      Even though its insurance costs are relatively low, the Cybertruck is still not the cheapest electric truck to insure. That distinction belongs to the Ford F-150 Lightning, with an average insurance cost of $3,193 per year, which is 6% less than that of the Cybertruck. The lower insurance costs for the Lightning are likely attributed to its more affordable starting price and less expensive repair costs, despite only 18% of Lightning owners having excellent credit, compared to the Cybertruck’s 66%.

      Will Cybertruck insurance rates remain low?

      That is uncertain. If Tesla reduces the Cybertruck's starting price, it may attract a younger, higher-risk demographic, which could lead to increased insurance rates. Additionally, rising repair costs for EVs could further exert pressure, potentially raising premiums. Since EVs are already costlier to repair than gasoline vehicles, any uptick in repair costs could significantly affect insurance rates.

      Generally, EVs have higher insurance costs because average repair expenses following an accident are 30% greater, and they are more frequently classified as total losses. Minor collisions can be very expensive to fix due to batteries, advanced sensors, and proprietary parts. While this trend is not exclusive to Tesla, the complexities involved in repairing its vehicles are a major factor influencing the company's insurance rates.

      For the time being, however, the Cybertruck remains an anomaly in insurance costs—a rare instance where a high-priced vehicle is more economical to insure than its less costly counterpart. Whether this situation continues will depend on how Tesla's sales, pricing, and repair expenses evolve in the future.