Tesla Model Y: running costs & insurance
An average warranty and high insurance premiums dampen what is otherwise a relatively affordable electric SUV to buy and run
| Insurance group | Warranty | Service interval | Annual company-car tax cost (20%/40%) |
|---|---|---|---|
| 46-50 | 4yrs/50,000 miles | Variable | From £180/£359 |
There’s plenty of savings to be made for company-car drivers opting for a Model Y, as it attracts zero road tax and a ridiculously low Benefit-in-Kind (BiK) tax rate of just 2% for the next few financial years. What’s more, Tesla slashed prices for the entire Model Y line-up in January 2023, bringing the starting price down under £45,000. However, high insurance premiums will quickly eat into those savings.
Tesla Model Y insurance group
The main drawback of Tesla ownership is arguably the high insurance premiums it incurs; even the base Model Y occupies the relatively high group 46, making it more expensive to cover than even the high-performance BMW i4 M50. Long Range and Performance Model Ys are even pricier to insure, sitting in groups 48 and 50 respectively.
Warranty
Tesla offers a standard four-year/50,000-mile warranty, which can’t quite match the length of Hyundai or Kia’s coverage, but it is at least longer than the three-year warranties offered by BMW, Mercedes or Polestar. The Model Y's batteries get an eight-year/100,000-mile warranty, too, and will be refurbished or replaced by Tesla if they fall below 70% of their as-new performance within that time. That’s unlikely to happen though, given Tesla’s excellent reputation for battery longevity.
Servicing
Tesla doesn’t state specific servicing intervals – the car will inform you if it needs attention. However, Tesla recommends checking the interior air filter and brake fluid every couple of years. Tesla has service centres dotted around the country, and offers a mobile service where a technician will come to you.
Road tax
Thanks to its zero-emissions status, you currently don’t have to pay any road tax (VED) or the London Congestion Charge with the Model Y. However, both those exemptions will come to an end in 2025.
Depreciation
Most people choosing the Tesla Model Y are likely to be company car drivers, although private buyers will certainly be interested in the electric SUV’s residuals. Thankfully, the Model Y fares pretty well in that department; the latest industry figures suggest it’ll retain anything between 50-55% of its value over three years and 36,000 miles of ownership, which is slightly above that of most rivals.
