Tesla Model Y review: running costs & insurance
High insurance ratings will eat into some of the savings you make from lower company-car tax and servicing
|Insurance group||Warranty||Service interval||Annual company-car tax cost (20%/40%)|
|46-49||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 ratings will eat into those savings.
Tesla Model Y insurance group
The insurance rating for the Model Y depends on what version you go for. The entry-level Model Y falls into insurance group 46 out of 50, while the Long Range and Performance land in groups 48 and 49 respectively. Those are some of the highest insurance ratings possible, meaning it will cost considerably more to get coverage for a Model Y compared to its rivals from Skoda, Hyundai, Volkswagen or even BMW and Audi.
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.
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.
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.
In This Review
- 1VerdictThe long-awaited Model Y boasts ultra-rapid charging capability and bundles of practicality, making Tesla’s take on the popular mid-size SUV class one of the best electric cars on sale
- 2Range, battery & chargingThe Model Y leads the pack when it comes to both range and ultra-rapid charging speeds
- 3Running costs & insurance - currently readingHigh insurance ratings will eat into some of the savings you make from lower company-car tax and servicing
- 4Performance, motor & driveIt’s startlingly quick for a family SUV, but the Model Y is bigger than most of its rivals and has a particularly firm ride
- 5Interior, dashboard & infotainmentTesla’s minimalist cabin will continue to divide people, but there’s not arguing its infotainment system is still one of the best in the business
- 6Boot space, seating & practicalityFold the rear seats down and the Model Y offers van-like levels of cargo space, plus a frunk up front as a bonus
- 7Reliability & safety ratingReliability and build quality might not be Tesla’s strong suit, but the Model Y does boast a five-star rating and high scores in the Euro NCAP crash safety tests