US insurers raise Tesla electric car insurance premiums

The average cost of full auto insurance in the United States in 2025 is $2,302, up 10% from last year. The insurance costs of Tesla electric vehicles have increased dramatically, with Model Y insurance costs soaring 29% to an average annual cost of nearly $4,000. Model 3 and Model X increased by 24% and 22% respectively, with the average annual premium of Model 3 reaching $4,364.