Tesla Insurance Costs Could Surge Amid Anti-Elon Musk Vandalism
By Giulia Carbonaro
Tesla cars are taking the brunt of growing anger at CEO Elon Musk, who in recent months has courted controversy by making an apparent Nazi salute at Donald Trump's inauguration and ordering the firings of thousands of federal workers in the weeks that followed.
Musk rejected the criticism on X, formerly Twitter, which he owns, in a post about the controversy saying he was being called a Nazi by "radical leftists."
In a recent slew of incidents across the United States and other countries including Germany and the United Kingdom, Tesla cars have been shot at, set on fire, slapped with stickers urging owners not to buy a "swasticar," and marked with a big red swastika.
While owners are trying to protect themselves with stickers saying they bought their cars "before Elon went crazy," increasing vandalism against Teslas, experts warned, could quickly drive up insurance for the already-expensive vehicles.
Newsweek has reached out to Tesla via email for comment.
Why It Matters
Tesla cars, dealerships, and charging stations have become an easy target for protesters angered by Musk's role as a "special government employee" in the Trump administration.
The billionaire is spearheading the so-called Department of Government Efficiency's (DOGE) efforts to shrink the size of the federal workforce, ordering the firing of thousands of employees and slashing agencies' funds. His apparently unfettered power has been questioned by Democrats, as well as the legality of his authority.
Tesla, who has long been considered the undisputed leader of the electric vehicle (EV) revolution, has suffered massively from the backlash against Musk. Sales have slumped across Europe where Musk tried to meddle in local politics, and have dropped on a global level, while the company's stock prices have also plummeted.
How Much Does It Cost to Insure a Tesla?
With a price tag of $35,000 for its cheapest car, Tesla Model 3, Musk's EVs are by far not the cheapest on the market—and insurance to cover them is already more expensive than for most other cars.
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The average cost of full coverage car insurance for a 2023 Tesla Model 3 is $3,495 a year, according to Bankrate's March 2025 rates. "This is about $800 more per year than the national average of $2,678 for a Toyota Camry," Bankrate insurance analyst Shannon Martin told Newsweek.
"However, Model X or S Plaid drivers pay much higher average rates. Comparatively, average BMW i4 insurance costs are closer to that of a Model 3, at $3,792 per year for full coverage," she added.
In general, EVs are now 23 percent more expensive to insure than comparable gas models, with an average annual full coverage cost of $3,430, Matt Brannon, data journalist at Insurify, told Newsweek.
"Tesla Model 3, Model Y, and Model X are the most expensive EV to insure as of February 2025," he confirmed. The cost of full-insurance for a Tesla Model 3, according to Insurify, increased 30 percent last year, to $4,362 annually.
"This is 25 percent higher in cost than the comparable Mercedes Benz A-Class. The annual average cost of full-coverage auto insurance for the Tesla Cybertruck reached $3,813 in 2025," Brannon added.
Tesla Insurance Costs Could Surge
Tesla Insurance Costs Could Surge Amid Anti-Elon Musk Vandalism Photo-illustration by Newsweek/Getty
Are Teslas' Insurance Costs Likely to Go Even Higher?
According to Brannon, theft and vandalism are factors insurers consider when setting insurance rates.
"If vandalism involving Tesla vehicles continues to rise and doesn't go back down, we could see rates rise for comprehensive coverage in the future," he said.
Martin explained that when carried, vandalism is covered by the comprehensive portion of an auto policy. While vandalism claims typically don't increase insurance rates as much as collision claims, they can impact rates, she explained.
"As we have learned from the 2023 TikTok theft trend targeting certain model Kias and Hyundais, if these types of losses continue, carriers could refuse to offer coverage for Tesla vehicles altogether," Martin warned.
In 2022, stealing certain Kia or Hyundai cars became something of an internet challenge on TikTok and Instagram, thanks to the carmaker Hyundai Motors' decision not to install a theft prevention mechanism called an engine immobilizer.
This system sends a signal to the vehicle when a driver inserts the key into the ignition, letting it know that it's safe to start the engine. In case the signal is not transmitted, the mechanism "immobilizes" the car, locking the steering wheel in place and making it impossible to start the engine.
The lack of this feature made it particularly easy for people to break into the cars and drive off in them, even for teenagers without much experience in theft—these same people who then talked about the "Kia Challenge" on social media.
By 2023, thefts involving Kias and Hyundai's had spiked around the country, and insurers were refusing to cover the vehicles in the states with the highest number of thefts. State Farm and Progressive—among the biggest car insurers in the country—announced that they were blacklisting several Kia and Hyundai models made between 2015 and 2021, either by reducing coverage in some states or refusing to offer new policies.
Newsweek contacted State Farm, Progressive, Geico, and Allstate for comment by email earlier this week, but received no response.
More Expensive Car Insurance for All
Car insurance has been on the rise for years now, and Martin thinks that this trend is likely to continue this year. "The cost of vehicles in general may increase based on several factors, pending tariffs being a significant contributor," she said.
Martin added: "Since the recent rise in vandalism is focused on Teslas and not other make vehicles, drivers who carry Tesla Insurance may see a higher premium hike than those who have coverage with other carriers, since the risk of loss isn't as diversified."
According to Brannon, these increases could be even steeper in the EV market.
"EV insurance rates increased by 28 percent in 2024, twice as fast as rates for gas-powered internal combustion engine (ICE) vehicles," he said. "Full-coverage insurance prices for Tesla vehicles have been rising the past few years. High repair costs factor into EV insurance premiums. If the costs of auto parts for Tesla vehicles rises, it could increase full-coverage insurance premium."
Will Tesla's Decline Continue?
Tesla is suffering from more than just a reputational hit. Competition has grown in the EV market, and the company is now facing the rivalry of legacy carmakers as well as foreign EV specialists such as BYD in China.
But as things stand, it is hard to decouple the company's sudden decline with Musk's role in the Trump administration. New data from Cars.com shows that the used EV market has evolved since Trump's return to the White House.
While Americans trying to buy a used EV now have 31 percent more options to choose from than last year, a growing number of buyers are specifically looking for cars that are not Teslas.
According to Cars.com, demand for non-Tesla EVs is now up 28 percent year-over-year, while searches for used Teslas on the websites are down 16 percent compared to a month earlier despite a 6.6 percent price decline.
That buyers are looking for alternatives to Teslas is clear also in the new vehicles market, where searches for EVs jumped 25 percent year-over-year, Cars.com reported. Researchers at the website suggest that buyers might be trying to lock in a purchase now that the $7,500 federal EV tax credit is still available and before the Trump administration enacts potential policy changes.
It is possible that Tesla will be forced to slash prices to attract reluctant buyers, Brannon said.
"Tesla has already dropped prices on the Cybertruck and Model 3," he said. "The average price of a used Tesla has dropped 7.8 percent in the past year, nearly three times faster than the average used car price has dropped (2.7 percent)."
He added: "The company saw sales volume decline 6 percent from 2023 to 2024. If demand remains low, it's possible that Tesla could lean more into lowering prices or extend incentives, like 0 percent financing."
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