The three cars with the fastest-rising insurance costs are all Tesla products, according to a new study. The worst of the bunch is the most popular. Tesla Model Y owners saw their insurance costs balloon by 29% over the past year.
The study comes from Insurify, an insurance comparison shopping service. Users input the cars they own and their driving history into Insurify’s systems to get quotes from multiple insurers. That gives the company a wealth of data on American driving habits and insurance costs.
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For this study, data scientists “analyzed more than 97 million quotes from its proprietary database to determine which car models saw the sharpest increase in the cost of full coverage between February 2024 and February 2025.”
Insurance Costs Spiking
Car insurance prices have soared in recent years. Experts blame a variety of factors.
New cars are more complex than ever, meaning that repairs for even minor accidents have spiraled up in cost. Ironically, safety systems that can help prevent accidents are often the most expensive parts to repair. Blind-spot monitors and automatic emergency braking systems require expensive sensors mounted near the exterior of a car where they’re vulnerable in an accident. Replacing them, or even recalibrating them, after a crash is pricey.
The rising number of extreme weather events also contributes. Some prominent insurers have pulled out of Florida and California completely after spiking flood and fire claims,
EVs, Hybrids Lead the List
However, Insurify cites another problem in this study. “Every model among the 10 with the fastest-rising insurance costs is an EV [electric vehicle] or hybrid, or has an EV or hybrid option in addition to a gas-powered version,” study authors explain. “Gas-powered vehicles are less expensive to repair and therefore cheaper for insurers to cover.”
That likely explains Tesla’s position at the top of the list. The most expensive part of an EV is its massive battery. In a Tesla, the battery is a structural part of the car. Even minor damage can require a complete replacement of the battery.
Many rivals now use modular batteries. Repair shops can replace just part of those batteries rather than the entire unit.