Tesla Model Y costs, insurance, warranty & tax

High insurance ratings will eat into some of the savings you make from lower company-car tax and servicing

Overall rating

4.5 out of 5

Running costs & insurance rating

5.0 out of 5

Insurance groupWarrantyService intervalAnnual company-car tax cost (20%/40%)
504yrs / 50,000 milesVariableFrom £208/£415

There’s plenty of savings to be made for company-car drivers with the 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. Therefore, its price tag might start from nearly £52,000, but 20% taxpayers will only need to fork around £200 per year for any Model Y. However, high insurance ratings will eat into those savings.

Tesla Model Y insurance group

Both the Long Range and Performance versions of the Model Y fall into insurance group 50 – the highest possible rating – though the same is true for its sister car, the Model 3. An insurance rating for the recently introduced Standard Range Model Y has yet to be confirmed, but we don’t expect to be much lower than the other two variants.

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.

Most Popular

Fisker PEAR: first look at £25,000 electric city car
Fisker PEAR spy shot
News

Fisker PEAR: first look at £25,000 electric city car

The cut-price EV is due to be unveiled in the second half of 2023 and offer up to 310 miles of range
2 Feb 2023
New electric cars coming in 2023 and beyond
Polestars under cover
Coming soon

New electric cars coming in 2023 and beyond

With electric cars making up an ever-increasing proportion of sales, the industry is working flat out to launch new models – here's what's on the way …
3 Feb 2023
Top 10 best electric SUVs 2023
Best electric SUVs
Best cars

Top 10 best electric SUVs 2023

Electric SUVs combine style and practicality with low running costs, making them a very popular choice in the UK. Here are our top 10 favourites to bu…
26 Jan 2023