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Which insurance company should I get a quote from? What about GAP insurance?

Last modified: 2023-09-19

10 min(s) read

Updated September 2023

Insuring a Tesla really isn’t any different from insuring any other car—and like every car, insurance prices continue to rise. For some of our members, the price rises have been quite significant (and stressful). We have therefore assembled this set of guidance to help where we can.

I paid £x, what did you pay?

The most important thing to remember about insurance is that it is completely individual. Each insurer will make their own assessment of you, looking at a wide range of criteria including postcode, age, driving history, employment, and so on. And each company will have its own profile of how much to charge for different patterns of risk.
So comparing notes with other Tesla owners is really not going to help: one person might pay £400 and another £1500 for the same type of vehicle. And some will see quotes of £3000. Some companies will quote you £500 and others £1000 based on the same information. That’s just how insurance works.
So, unfortunately there is no substitute for doing the legwork individually: trying different companies, checking that you have built the correct set of facts, and so on.

So which company is the cheapest?

A Tesla really isn’t that different to insuring any other car, however, the companies below have all been known to give competitive quotes but there is no simple answer to this – see above.

  • A-Plan – One of the largest specialist insurance distribution groups in the UK with 100+ branches nationwide, they do a car insurance comparison with carefully selected insurers to get you the right price and make sure you’re covered (Key Partners of the Club)
  • Direct Line has a specialist Tesla website – Once you’ve got a quote consider calling up to negotiate
  • Novo – They include guaranteed Tesla loaner vehicles during your claim irrespective of fault, full value + European cover + fully comp on any other vehicle
  • Admiral
  • LV
  • Diamond
  • Hastings Direct
  • Churchill

And of course, price comparison websites can also be very helpful, e.g. Compare prices on Confused.com*

Things to check with your policy:

  • Confirm the car listed on the policy is exactly the car you own. e.g. V5 paperwork sometimes list cars as 90D when the car is a P90D or similar
  • Companies such as LV may require a tracker, the Tesla tracker has been agreed to match their criteria however some staff will not know this so ensure you confirm it with them/get it in writing
  • Some companies may offer discount for cars with Autopilot
  • If the car is stolen or written off will they pay you the market price of the car (at the time of the claim) or a guaranteed value (e.g. the cost to replace the car like for like with a new vehicle)

Is cheapest best?

While we all like to save money, it is also important to remember that insurers with excellent claims handling may be worth a higher premium. Saving a few pounds now might be something you regret if you have an accident and end up wrangling for months with an unhelpful insurer, with no loan vehicle, or being forced into substandard repairs. Again, this is a personal choice we all have to make when choosing an insurer.
You should also consider how your driving pattern may evolve and whether this matches what a cheaper insurer will provide. For example, if you are going to drive in Europe or you need to cover a loan vehicle while yours is being repaired, some insurers will include this in the base policies but others will require a separate add-on to be purchased for each trip.
As an example, Novo (https://www.novoinsurance.co.uk/products/tesla/) is a specialist insurer who maintain a Tesla fleet so they can provide you with a loan car during repairs. Over many years they have built an exceptional reputation with Tesla owners for their personalised claim service and the range of “extras” they include; but there have also been reports that with recent changes to their underwriters, their quotations are very high and some members have now moved elsewhere.

Why are Teslas so expensive to insure?

We are seeing rises in insurance premiums across all makes of vehicle—it doesn’t matter whether you have a Skoda or a Porsche, at the time of writing (2023) owners are seeing 30-90% price rises or even higher. There are many factors behind this, widely discussed in the national press and not specific to Tesla. In addition to rising costs, insurers are adjusting their models to new regulations which prohibit offering “new joiner” bonuses to attract customers (because this was unfair to loyal existing customers)—so there may be fewer opportunities to save money by switching.

Of course, Teslas are also quite expensive to repair after a major accident. Tesla are closely monitoring insurance prices and are taking their own steps to reduce repair costs. Our Group management meets regularly with senior Tesla UK executives to discuss this topic and we have been briefed on a wide range of helpful initiatives. For example, Tesla UK are:

  • expanding the network of approved repairers (now over 400 in EMEA) and conducting audits to ensure that these firms do cost effective repairs (eg discouraging replacement of parts that do not need to be replaced);
  • making sure that supply chains are efficient to reduce time off road;
  • building more Tesla Bodyshops (Dartford, Wolverhampton, Milton Keynes…) which bring consistency and set a market standard, aiming to cut waiting times in half;
  • working with the insurance industry to build a better understanding of Teslas and EVs more generally
  • regularly collecting feedback from the Group on insurance issues.
In the US, Tesla offers its own branded insurance. There are currently no announced plans for this kind of scheme in the UK, although our Group continues to encourage Tesla to move in this direction.

What are some “tricks” to reduce insurance costs?

  • Apart from searching through comparison websites and directly with a range of insurers, often the most effective way to make a dent on insurance prices is to opt for a high excess, eg £1000. You can then either take that risk yourself (perhaps set some money aside in case you do have to make a claim) or take out a separate policy (with a different firm who specialist in excess reduction) to insure the £1000 excess.
  • Some insurers have premiums which vary significantly based on the number of miles you plan to drive—too few or too many and your risk profile changes. This is worth experimenting with.
  • With some insurers it is worth talking directly to their call centre, as sometimes ways can be found to reduce below an online quote.
  • There are referral schemes which could give you a few percent cashback on insurance found through them, e.g. TopCashback / Quidco.
  • Some insurers will offer discounts if you have a tracker installed. This typically needs to comply with testing standards from Thatcham Research, and the in-built location tracking in Teslas may not meet those standards. Some insurers can be persuaded, but with others you are taking a risk that a claim will not be paid if you assert that your vehicle has a tracker and at time of claim the insurer decides it did not. If you reach agreement that your Tesla should have a tracker discount, make sure you get the decision in writing.
  • As with any vehicle, you can sometimes reduce premiums if you secure your car better at home (eg in a garage), you join certain groups who have affiliate discounts, you insure multiple cars with the same insurer, you add or remove named drivers, you move from market value to “agreed value” basis (ie agree a lower figure for what you will receive if the car is written off), or you are a member of an advanced driving scheme. For further ideas, consult one of the money-saving or comparison websites.

Should I consider GAP insurance?

GAP (“Guaranteed Asset Protection”) insurance is a separate product which will ensure that if your car is stolen or written off, you will receive enough payout to buy a new one (vs only the market value at the time).
Members of our Group have found GAP insurance very helpful, and it is often not particularly expensive. There are many providers; ALA is a well-known one.
Before taking GAP insurance, check that you don’t already have it. Most insurers include it for the first year on new cars; others include it as a standard part of their policy.

If your car is stolen or written off (damaged beyond repair), GAP insurance covers the difference between what your insurer will pay out and the amount you originally paid for your car. – MoneySupermarket

What do Tesla owners think of GAP insurance:

Just bought Gap insurance for my new Model S 90D being collected Friday – for £474 I’m covered for 5 years that if the car is written off I can get the difference between the insurance payout and the original invoice price paid, or replacement of the car with one the same, whichever is the greater. 26p a day – UK Tesla owners

Previous discussions on GAP insurance within the group might be useful

What GAP insurance companies should I get a quote from? (all recommended by Tesla owners on the discussion groups)

Remember to check your car insurance as some may already cover you for gap insurance / guaranteed value or similar (e.g. NFU & Novo offer this)

Should I insure my wheels?

Companies such as ALA offer Alloy Wheel insurance. Read more about protecting your wheels.

Should I get breakdown cover?

Read this

Do you have the expertise? Share your knowledge!

Remember modifying your vehicle may invalidate part of your vehicle’s warranty.
Therefore, be careful and check with Tesla if unsure. Also any modifications will most likely need to be OK’d with your car insurance company.

To the best of our knowledge, these guides are correct and factual. However we take no responsibility if something does go wrong.

If you spot a mistake please ensure you alert us.