A blog post written by both a Tesla owner and insurance professional.
Are you a Tesla owner or thinking about purchasing one? – There’s quite a few things you’ll have to learn if you’re going from Gas or Hybrid to an all electric. But, we’re only here to talk about the insurance side of owning an all electric vehicle and the question is, will buying “Tesla Insurance” be any better than using an independent broker like TCS Insurance Brokers?
Tesla Insurance Services, Inc. was established in 2017 and already has a hefty list of Department of Insurance consumer complaints against them*. As of the date of this post they show to only be appointed with 2 insurance companies*. So we can easily say that Tesla Insurance is currently nothing special. Just a Save-You-A-Buck insurance policy with Tesla badging. Which to me, feels like watering down a brand. As the vehicle itself is good but the insurance product isn’t.
(2026 Update) – It was a while ago that we wrote this Blog post but here are the most recent facts; 902 complaints in CA in 2025, WOW! Not everyone goes the extra mile to make sure that a complaint is posted, so 902 are just those folks that did the extra leg work to make sure they were heard.
(2026 Update continued) Tesla is getting away from using third parties, State National, and is now using “Tesla Insurance Company” to underwrite (established 2024). Will that mean better service? Or will Tesla try to save a buck by doing a quick fix? For those of us that own a Tesla, could this be just like they do when you bring your Tesla for service issues? Parts won’t get replaced, but those service techs will for sure “MacGyver” things to help Tesla Corp save a buck. Even if that means you will be back to the same service center for the same problem week after week. Will it be the same with Tesla Insurance claims?
“Accident at Tracy Blvd and Central. Despite providing witness contact information and following all protocols, the case was closed without contacting the witness or properly resolving the liability. Throughout this process, I experienced a total lack of communication from three successive adjusters. Consequently, I have not been reimbursed for my rental car expenses, which were explicitly covered under my contract while my vehicle was at the Tesla collision center in San Jose. ” – Unsatisfied Tesla Insured in Tracy, 3/2026
Another important question to ask yourself when buying insurance from NON-Insurance folks is, “who is the insurance really protecting?”. – Will buying their insurance completely indemnify the manufacturer from any wrong doing? Where does that leave you and your family in a case where the product you are driving completely malfunctions and injures you and your loved ones? Will this built-in insurance fight for you or fight against you? Are these limitations why their product may seem cheaper?
*CA Dept. of Insurance details can be found at https://cdicloud.insurance.ca.gov/cal/LicenseDetail
3 things you should know about insuring your Tesla Electric Car
- Software upgrades aren’t automatically covered by your auto insurance. – Contrary to popular belief, FULL COVERAGE is NOT the same across the board with all auto insurance companies. Some consider software upgrades, such as full self driving, as customization and it will NOT be covered automatically.
- Dealer parts coverage is NOT a guarantee on any electric vehicle! – Even Teslas have competition in the after market world of crash parts. The insurers have the right to make you wait as long as it takes for more affordable replacement crash parts to be supplied. Which means that you may end up with a down vehicle for upwards of 90 days when you choose not to buy OEM parts coverage.
- Carrying limits above the value of your Tesla will cost you less than going cheap. – The insurance cost per thousand is lowered at the higher end of coverage limits. So buying cheap Full Coverage will actually cost you more than insuring your car at a level that will actually cover a real accident.
These are just 3 things that other insurance folks won’t explain up front. It’s usually not until you are in a claim where you are not being paid for what you thought you had that this comes up.
How do I pick the right insurance to cover my electric vehicle?
Let’s break down the 3 types of car insurance companies just so you can see that they are not all the same. – Skip this headache by hiring a broker like us to do the work for you.
- Bottom of the barrel companies are what we call our C Level Carriers. These companies offer State Minimum coverage with zero flexibility for cheap pricing. Think, coverage for the car, not me and definitely no coverage if others drive my vehicle.
- Middle of the pack companies are what we call our B Level Carriers. These companies offer higher coverage limits than C lever carriers and some additional/custom equipment options. Think, a build-it-myself policy. Some options from the top and some coverage restrictions from the bottom to help your pocket feel better.
- Top of the shelf companies are what we call our A Level Carriers. These companies offer a wide range of coverage options with all sorts of customizations already built-in. The pricing is better at the higher spectrum of coverage and they do most of the thinking for you by building-in the coverage enhancements needed with today’s highly advance vehicles.
Depending on your driving and claims history the pricing will vary with each level of insurance company. Clean Good Drivers usually qualify for Level A Carriers at the lowest pricing. However, not every insurance broker is appointed with more than 2 Level A Carriers. Here at TCS Insurance Brokers we represent the top 10 in the U.S.!
Do homeowners qualify for better insurance rates on their electric vehicle insurance?
With the high number of quality insurers we represent we are likely to offer you several bundle options that could save hundreds of dollars annually. However, many folks we come across usually don’t have the suggested $100,000/$300,000 coverage minimum for homeowners and the savings are then used to purchase up coverage that was missing.
There are times that bundling with the same insurance company is NOT the best decision. Some insurers might be great at affordably insuring one thing but not the other. – At TCS Insurance Brokers we take a different approach and can always provide an inhouse bundle option with different top quality carriers that will protect you, save you money and allow you to keep us as your dedicated insurance professional.
Whether you own a home and would like to insure it with us or you are a renter and simply need good quality insurance, we can help! We come up with innovative ways to qualify you for the best insurance options at the most affordable pricing.
post written by: Domingo Ramos, Insurance Broker, proudly licensed to transact insurance in California, Oregon, Washington, Nevada, Arizona, Texas and Michigan. – domingo@tcsib.com
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