If you’re tired of the sticker shock you experience every time you fill up at the gas pump, consider driving an electric vehicle (EV) or hybrid. These vehicles rely entirely or partially upon batteries to power your ride, saving you significant money on fuel costs.
However, that doesn’t necessarily translate to adoption. According to a fall 2026 CarInsurance.com survey, 41% of drivers are not considering an EV, and among those who are, insurance cost concerns cluster around battery repair (51%) and premium levels (24%)
How to get car insurance for an EV
Getting car insurance for an EV is like shopping for insurance for any other vehicle. Get quotes to compare the rates of at least three companies since rates are highly variable for each driver and their location, the driver’s history, and the make and model of the car.
“The depreciation on Teslas and other electric/hybrid vehicles is lower than for many gas-powered cars. They really seem to hold their value and their reliability seems to be very good,” said Fred Balkin, a personal injury attorney with Stein Sperling in Rockville, Maryland.
Here are three things to do when you’re buying an insurance policy:
- Determine how much you can expect to pay and gather vehicle/personal information.
- Review your current policy and assess your coverage. You might want to increase your coverage limits if purchasing a more expensive vehicle.
- Compare insurance quotes and research insurers to find the best one for you.
Cost of car insurance for EVs vs. hybrids vs. gas-powered cars
Based on the models we analyzed, the average yearly cost of insurance for an EV ranges from $2,447 to $6,413. For comparison, the annual full-coverage rate for a gasoline-powered Toyota RAV4 is $2,414, compared to $2,499 for the Hybrid Toyota RAV4.
Insuring an electric or hybrid vehicle can cost more than covering a gas-powered car, depending on the make, model, and year. These vehicles often have pricier parts, and not every repair shop is equipped to handle them, factors that can lead to higher insurance premiums. Insurers also have less long-term data to assess risk compared to traditional gas-powered cars.
According to a fall 2026 survey conducted by CarInsurance.com, battery replacement/repair coverage is the top insurance concern by far (51%) — more than double the next concern, higher premiums than gas vehicles (24%), among drivers considering an EV.
Amy Harris, a State Farm Insurance spokeswoman, said her company uses a variety of factors when determining the price of each auto insurance policy for a hybrid or EV.
“Prices for individual customers are influenced by a policyholder’s driving record, the make and model of the vehicle, who drives the vehicle, how it is driven and the amount and types of coverage selected – among other things,” Harris said. “For State Farm auto customers, there is not much difference in insuring an electric or hybrid car compared to a gasoline-powered one. We use the same underwriting guidelines for all these vehicles.”
What are the advantages and disadvantages of EVs?
Andre Disselkamp, the co-founder of Finsurancy, an insurance broker, said that hybrids, EVs and gasoline-powered cars have advantages and disadvantages. Gas-fueled vehicles are usually more powerful and faster than hybrids or EVs, making them better for drivers requiring those capabilities.
“Hybrid vehicles are often seen as the best option for those looking to reduce their carbon footprint. They are powered by gasoline and electricity, meaning they produce minimal emissions. When the stored electrical power in the batteries runs out, the gasoline engine kicks in. Every time you brake, you begin to recharge the battery,” Disselkamp said.
Michael Kim, co-founder of Evcharger Reviews – a site that reviews EVs and EV home chargers – said electric vehicles are typically more expensive than hybrids and gasoline-powered cars.
“However, hybrids and gasoline-powered cars require more regular tune-ups and maintenance than electric vehicles,” Kim said. “Over the long run, EVs may be less expensive to own and maintain than hybrids or gasoline-powered vehicles.”
Janet Ruiz, director of strategic communications for the Insurance Information Institute, said that consumers have more choices today regarding the vehicles they drive.
“There are various options for consumers to use renewable energy by purchasing a hybrid or electric vehicle. They may be more expensive to purchase initially. However, they are less expensive to fuel – especially if they are entirely electric and fueled by plug-in charging stations,” Ruiz said.
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Do you need extra insurance coverage for EVs?
Experts recommend considering optional car insurance coverage for any vehicle if you want more protection and peace of mind, including rental reimbursement, roadside assistance, glass coverage, accident forgiveness, umbrella insurance and gap coverage.
“Gap insurance is a good additional coverage to purchase if your electric or hybrid vehicle is three years or newer,” Ruiz said. “With gap coverage, in the event of a total loss, you will get the newer model year replacement.”
What are the benefits of driving electric vehicles?
Electric vehicles depreciate at a rate similar to that of gas-powered vehicles, according to Consumer Reports.
According to the report, “new electric vehicles that go at least 200 miles on a single charge are projected to maintain their value as well as comparable gas-powered vehicles over the next five years. New data show that both battery electric vehicle (BEVs) and plug-in hybrid electric vehicle (PHEVs) drivers are saving 50 percent on their repair and maintenance costs when averaged over a typical vehicle lifetime.”
How to save on EV car insurance
EV insurance doesn’t have to break the bank. While electric cars can cost more to insure than gas-powered vehicles, smart shopping and strategic choices can help you keep premiums under control.
- Compare quotes from multiple insurers. Rates vary widely between companies. Some insurers, like Travelers and Progressive, offer specialized EV coverage or green-vehicle discounts that can significantly lower costs.
- Ask about green vehicle or hybrid discounts. Many insurers offer up to 10% off for owning an electric or hybrid vehicle, rewarding environmentally friendly drivers.
- Bundle your policies. Combine your car insurance with a homeowners, renters or motorcycle policy to save up to 20% on premiums.
- Use telematics programs. Programs like Drive Safe & Save (State Farm) or Snapshot (Progressive) track your driving habits and reward safe or low-mileage driving — a common trait among EV owners.
- Raise your deductible — wisely. Opting for a higher deductible can lower monthly payments, but make sure you can comfortably cover the amount if you file a claim.
- Install anti-theft or tracking devices. Because EVs are often targeted for high-value parts and batteries, adding security features may qualify you for extra savings.
- Keep a clean driving record. Accidents and violations can raise premiums — and since EV repairs can be expensive, staying ticket-free helps keep costs down in the long term.
Final thoughts
Before committing to an electric or hybrid car, you must do your homework and learn the average monthly charging or fueling costs, and whether you want to own or lease the car to keep your monthly payments affordable.
Frequently Asked Questions: Electric vehicles
Will an in-home EV charging station affect my homeowners insurance?
Having an in-home EV charging unit in your garage or on your property should not affect your homeowners insurance premiums negatively, said Janet Ruiz, an Insurance Information Institute representative. But it’s important to inform your insurer that you have an in-home EV charging unit to cover it in case of a loss.
Can I still get a tax credit if I buy an EV?
The federal tax incentives for electric vehicles expired on September 30, 2025, meaning new EV purchases made after that date no longer qualify for federal tax credits. As of October 1, the federal EV tax credit is no longer available.
Will my car insurance cover EV roadside assistance?
Roadside assistance coverage may be included in your automobile insurance policy at no extra cost. Your carrier may charge extra for this protection, regardless of the type of vehicle you drive.
Resources & Methodology
Source
Consumer Reports. “Electric Vehicles May Cost More to Insure Than Gasoline-Powered Cars.” Accessed September 2026.
Methodology
CarInsurance.com editors collected rates from Quadrant Information Services for a 40-year-old male and female driver carrying a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles. Read the detailed methodology for more information. In the fall of 2026, CarInsurance.com commissioned Dynata to survey 1,471 consumers about their auto insurance and attitudes regarding climate change.
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