Love it or hate it, the Tesla Cybertruck is a head turner with its unique design, sharp edges and non-conventional futuristic approach.
There is a further question though: Who is driving Cybertrucks, and how do insurance costs compare to other EVs?
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In a new study carried out by American insurance comparison shopping website, Insurify, it found that full-coverage insurance for a Tesla Cybertruck costs an average of $3,392 per year, which is 45% more than the full-coverage national (US) insurance average of $2,336.
The study also found that the Tesla Model 3 is 60% cheaper than the Cybertruck; however, insurance for the Cybertruck actually costs 22% less than the Tesla Model 3.
We spoke Matt Brannon, Data Journalist at Insurify, to learn more about the study and to discuss the reasons as to why the insurance for the Cybertruck specifically varies from other EVs on the market and what’s going on with Tesla.
Just Auto (JA): Looking at the data the company has collected what did it reveal about the drivers of Cybertrucks?
Matt Brannon (MB): The two areas where Cybertruck drivers stand out are credit score and age, both of which influence insurance rates. Insurify’s data shows two-thirds of Cybertruck drivers (66%) have excellent credit. Of Model 3 drivers, only 13% had excellent credit. That’s consistent with the fact that the Model 3 has higher adoption and a more mainstream audience due to its lower-than-average cost.
As for age, older drivers generally pay less for car insurance due in part to having a longer driving history. Half of Cybertruck owners are in their 40s, compared to 14% of Model 3 owners.
How much more expensive is a Cybertruck to insure compared to other EVs?
Even though the Cybertruck’s drivers have a less risky driver profile due to their high credit score, full coverage for the Ford F-150 Lightning is 6% less expensive than the Cybertruck, averaging $3,193 per year compared to the Cybertruck’s $3,392.
That’s despite the fact that Lightning drivers are much less likely to have excellent credit (18%). If drivers of both vehicles had the same credit profile, coverage for the Lightning could be much more affordable. The F-150 Lightning is a much less expensive vehicle compared to the Cybertruck overall, with a lower cost of repairs.
So why is the insurance on EVs more expensive than for ICEs?
High repair costs factor into EV insurance premiums. The average post-accident repair cost for EVs is nearly 30% more than internal combustion engine (ICE) vehicles. EVs tend to have more advanced technology that is difficult to repair, instead requiring replacement, which is also generally more expensive.
EVs tend to have more advanced technology that is difficult to repair
Mechanics are also less likely to be familiar with EVs than gas-powered vehicles, which can raise labour costs.
How does this compare to other Tesla models?
The Model 3 is the most expensive EV to insure, costing an average of $4,362 annually at the end of 2024. This is 29% more than the Cybertruck. The Model 3 has a higher adoption rate, leading to a more risky driver profile and higher insurance rates. The cost of insurance on the Model 3 increased by 30% ($1,001 increase) in 2024.
Tesla Model Y costs an average of $3,939 annually. The Model X costs $3,958, on average. The Model S costs an average of $3,535.
Do you predict these insurance prices to stay the same/increase/decrease?
Right now, the average Cybertruck driver has a lower risk profile, which contributes to lower insurance costs. If the price of the Cybertruck decreases, it could allow younger drivers with a riskier insurance profile to adopt the Cybertruck.
This would increase the average cost of insuring a Cybertruck. If repair costs continue to increase, which is likely, EVs as a whole will see rates rise further in 2025.
