Electric vehicles offer plenty of perks—from saving on fuel to reducing emissions—but one question often pops up: are they more expensive to insure? The short answer is yes. Because EVs tend to cost more to repair or replace after a mishap, insurance premiums usually sit higher than those for conventional cars.
EVs already carry a price premium of about 16% compared to gas-powered vehicles, according to recent Kelley Blue Book data. That cost gap spills over into insurance as well.
On average, a driver pays around $228 a month to insure a gasoline‑engine car. For an electric vehicle, that figure jumps to roughly $338 per month, based on research from Insurify.
Of course, your exact rate depends on a mix of factors: your driving record, age, gender, where you live, the specific coverage you choose, the make and model of the car, and even your credit‑based insurance score in some states.
So why the difference? First, repairs on an EV can be pricey. Replacing a high‑voltage battery often costs tens of thousands of dollars, and parts may be scarce because EV production is still relatively niche. Second, not every repair shop is equipped to handle electric vehicles, which can mean the insurer has to send your car to a specialist shop that charges more. Finally, because EVs are generally more expensive to replace than comparable gas cars, insurers may raise premiums for full coverage—including comprehensive and collision.
If your battery gets damaged or destroyed in a covered event, most policies will cover some or all of the repair or replacement, subject to your deductible. That deductible is the amount you pay out of pocket before insurance kicks in.
Hybrid vehicles sit somewhere in between. They have both a gas engine and a high‑voltage battery, so they’re usually cheaper to insure than pure EVs but still cost about 7% to 11% more than a standard gasoline car, according to a leading insurer.
You won’t need a special insurance policy just because your car is electric. State minimum requirements—liability, uninsured motorist, medical payments, or personal injury protection—apply to all vehicles. If you’re leasing or financing, the lender may add requirements like comprehensive, collision, or gap coverage.
Here are a few tips to keep your EV insurance as affordable as possible:
- Shop around and compare quotes from multiple insurers.
- Consider a higher deductible to lower your monthly premium.
- Maintain a clean driving record; safe driving discounts can add up.
- Bundle your auto policy with homeowners or renters insurance for a discount.
- Ask about discounts for safety features, low mileage, or if you’re a member of certain organizations.
- Use telematics or a safe‑driving app if your insurer offers it; it can reduce premiums for good driving habits.
With the right research and a few smart choices, you can enjoy the benefits of an electric car without paying a premium that feels out of line.
