My Tesla Model Y Insurance Safety Score Keeps Dropping When I Drive, But I Can’t Tell What Tesla Thinks I’m Doing Wrong

This Tesla owner thought she was driving safely, but her Model Y insurance score kept tanking even at normal speeds. Now she’s wondering if the system is broken, inconsistent, or simply impossible to please.

It's frustrating doing everything right behind the wheel and still being told you're doing it wrong. For many Tesla drivers, that frustration comes straight from the app itself. Tesla’s Safety Score system, which silently tracks your moves to determine insurance rates, can feel more like a judgmental backseat driver than a helpful tool. While the idea behind usage-based insurance makes sense in theory, the way it plays out in practice has left many owners scratching their heads.

I saw that firsthand this evening while scrolling through the “Tesla Model Y” group on Facebook, where I came across a post by Tammy Lyons. Tammy is insured through Tesla and says her safety score keeps dropping due to so-called “excessive speeding,” even when she’s driving well below the limit. What’s most frustrating is that the app’s logic seems inconsistent as her daughter’s Model 3 has different criteria, and now Tammy’s wondering if anyone else is just as confused as she is. Here’s what Tammy wrote in full:

“I’m insured with Tesla Insurance and the safety score continues to drive me crazy. Specifically the excess speeding. My daughter has a Model 3 and the app’s definition of excessive speeding is only over 85 mph. My Model Y app says that AND if you are driving 20% faster than the cars in front of you. Why would there be 2 different standards? And what is one going to do when someone pulls out of a side street (safely)? Of course you’re going to be going 20%+ over their speed. I get an excessive speeding ding every single time I drive the car and I don’t even go above 55 mph often. Also, in case anyone else reading this has Tesla Insurance, do you know when the scoring resets? I just passed the first month and all the dings are still there. Is it a 2 month score? Thanks!”

Understanding the Algorithmic Disconnect

Tammy’s experience is a striking example of how Tesla Insurance’s data-driven system can feel overly rigid and at times unfair. What’s supposed to be a smarter and more dynamic insurance model often comes off as inconsistent. This is even between two Teslas in the same household. If her Model Y is being measured against a different standard than her daughter’s Model 3, what exactly determines the behavior thresholds? Is it the year, software version, policy tier, or something else Tesla hasn’t publicly clarified perhaps?

That’s where confusion turns into frustration, especially when the consequence of a misinterpreted metric directly impacts your monthly rate. Tesla's insurance model relies heavily on its built-in Safety Score system that evaluates your real-world behavior behind the wheel, a formula that tracks everything from forward collision warnings to hard braking, and yes, even “excessive speeding.” The idea is noble as it should reward safer drivers with lower premiums. But when the system can’t distinguish between safely passing a slower driver and dangerous speeding, that logic starts to unravel.

Tammy’s concern about her score never resetting is another layer of stress. If the Safety Score continues to carry over indefinitely or for months without clarity, how can drivers know if they’re improving or being punished for past actions? Tesla hasn't published a clear public guideline on when or how Safety Scores reset, leaving many owners like Tammy searching for answers in forums and Facebook groups.

What Other Owners Are Saying

But Tammy isn’t the only one who’s feeling trapped inside the algorithm.

Derek Parker jumped into the conversation with a blunt take: “I'd pay double the rates not have to deal [with] being micromanaged.” His comment reflects a growing sentiment among drivers who feel that Tesla’s usage-based insurance is less about rewarding careful driving and more about penalizing any deviation from perfect behavior no matter how minor.

Reggie Andaya echoed that viewpoint, adding, “One of the reasons why I hesitated to go with Tesla Insurance. I'd rather pay a little more and not have to constantly check my score and see my rate fluctuate. It's like Tesla insurance doesn't want you to have fun with the car.”

That last sentence hits on something deeper: Tesla’s vehicles, especially the Model Y and the high-performance versions of the Model 3 that are known for quick acceleration and dynamic handling, are designed for engaging driving. But when your insurance punishes you for spirited but legal behavior, it feels like a contradiction. It seems strange for Tesla to offer acceleration that rivals supercars while penalizing drivers for using it within legal limits.

Then there’s Anthony McWilliams, who has been using Tesla Insurance for more than three years: “I've never been dinged for passing others driving 20% over. Never even heard of it till now. I've been using Tesla insurance for over 3 years. Guess I'll have to check that out on my app.” His experience brings another perspective that perhaps some owners aren’t seeing these penalties because of vehicle configurations, firmware versions, or even inconsistencies in how Tesla’s algorithms are rolled out.

And finally, Ewa Barker offered a more pragmatic approach: “Go with State Farm. We pay $100/month for a Tesla Model Y Performance.” It’s a reminder that traditional insurance providers may lack the tech bells and whistles but often provide consistent coverage without the emotional rollercoaster.

Where Innovation Clashes with Experience

This is the underlying tension of Tesla Insurance. A program that promises fairness, precision, and transparency through data but could deliver inconsistency, ambiguity, and stress. While the idea of tying premiums to actual driving behavior is progressive, it hinges entirely on the accuracy and fairness of the scoring system.

As Tesla continues to evolve its insurance model, this isn’t the only area where concerns are being raised. Delivery delays remain a major frustration for many buyers. One owner shared a firsthand account of their 2025 Tesla Model Y being delayed with no clear explanation, adding to a broader sense of uncertainty.

Battery degradation has also become a growing worry among long-term Tesla owners. At the same time, this detailed breakdown from a shopper debating whether buying new was worth it after seeing used Model Y prices highlights how confusing the used market can be for prospective buyers.

Together, these factors contribute to a growing list of ownership unknowns that go far beyond just how you drive. Even loyalty has limits as one driver who gave up their trusted Toyota Tundra for a Tesla Model 3 and finally understood the hype, the excitement came with an emotional learning curve and something not unlike what Tammy is feeling now. When expectations clash with the fine print or hidden algorithms, it’s easy to see how excitement can turn into second thoughts.

My Personal Insight

I think what makes Tammy’s post so relatable is how it captures the strange gap between data and real-world driving. I’ve tested vehicles that practically beg to be driven with confidence, but it feels ironic when the same car’s insurance punishes you for doing just that. I see huge potential in usage-based insurance, but it needs transparency, calibration, and better human context. When algorithms define our risk level, it’s only fair we know the rules we’re being judged by. If Tesla can hit those points that I talked about more clearly with consumers, then they have a real shot of making this system incredibly useful for all Tesla owners.

Key Takeaways for Tesla Drivers and Shoppers

• Tesla’s Safety Score system may apply different standards depending on the vehicle, software, or internal policy settings. Those differences aren't always made clear to the public.
• Being penalized for going 20% faster than other drivers, even at low speeds, raises concerns about how Tesla defines “excessive speeding.”
• Many Tesla Insurance users find the system stressful, inconsistent, or overly punitive. Some are switching back to traditional insurance providers to avoid these issues.
• Without clarity on how or when Safety Scores reset, drivers feel stuck in a cycle of penalties with no obvious path to improvement.
• Tesla’s core mission is innovation, but its insurance model could more accurately reflect the nuance of real-world driving behavior.

What Are Your Thoughts on This?

Have you ever felt like your Tesla Insurance Safety Score doesn’t reflect how you actually drive?

And if you don't have Tesla Insurance or a Tesla, how do you feel about Tesla’s dynamic behavior-based insurance model?

I'd like to hear your opinions in the comments below.

Aram Krajekian is a young automotive journalist bringing a fresh perspective to his coverage of the evolving automotive landscape. Follow Aram on X and LinkedIn for daily news coverage about cars.

Image Sources: Tesla Gallery