While 292.3 million EVs hit the road in the U.S. in 2024, this figure was only 1.4% of the total vehicles. It’s also only a slight increase from the previous two years – 2023 had 288.5M EVs on the road and in 2022, there were 285.2M – less than 1% – according to Experian.
While EVs might save you money on gas and maintenance, an electric car will cost you an average of $3,174 per year for full coverage car insurance. Compared to the $2,403 for a gas-powered sedan or $2,316 for an SUV, EV car insurance is significantly higher.
- Major carriers like State Farm, Nationwide, Geico, Progressive, Farmers and Allstate offer EV auto insurance.
- The cost of insuring Tesla vehicles is higher than that of other EVs or hybrids.
- EVs cost an average of $3,174 annually to insure, higher than the national average for all cars of $2,663.
How much does electric car insurance cost?
It costs an average of $3,174 per year to insure an EV. But the cost you’ll pay varies based on the vehicle you drive. For example, the Mini Cooper Electric costs an average of $2,099 to insure per year. However, the Mercedes-AMG EQS costs an average of $5,648 annually to insure.
In the table below, see the cheapest average annual full coverage rates for EVs.
| Make model | Annual rates | Six-month rates | Monthly rates |
|---|---|---|---|
| Audi e-tron GT | $5,528 | $2,764 | $461 |
| Audi Q4 e-tron | $2,711 | $1,355 | $226 |
| Audi Q8 e-tron | $3,295 | $1,647 | $275 |
| Audi SQ8 e-tron | $4,010 | $2,005 | $334 |
| BMW i4 | $3,726 | $1,863 | $310 |
| BMW i5 | $3,877 | $1,939 | $323 |
| BMW i7 | $5,480 | $2,740 | $457 |
| BMW iX | $3,916 | $1,958 | $326 |
| BMW X5 | $3,369 | $1,685 | $281 |
| Cadillac LYRIQ | $2,985 | $1,492 | $249 |
| Chevrolet Blazer EV | $2,890 | $1,445 | $241 |
| Chevrolet Corvette E-Ray | $4,584 | $2,292 | $382 |
| Chevrolet Silverado EV | $2,452 | $1,226 | $204 |
| Dodge Hornet Hybrid | $2,741 | $1,371 | $228 |
| Ford Escape Hybrid | $2,163 | $1,082 | $180 |
| Ford F-150 Lightning | $2,743 | $1,372 | $229 |
| Ford Mustang Mach-E | $2,851 | $1,426 | $238 |
| Genesis Electrified G80 | $3,646 | $1,823 | $304 |
| Genesis Electrified GV70 | $3,006 | $1,503 | $251 |
| Genesis GV60 | $3,172 | $1,586 | $264 |
| GMC Hummer EV SUV | $4,513 | $2,256 | $376 |
| GMC Hummer EV Truck | $4,111 | $2,056 | $343 |
| Honda CR-V Hybrid | $2,164 | $1,082 | $180 |
| Hyundai Ioniq 5 | $2,721 | $1,360 | $227 |
| Hyundai Ioniq 6 | $2,929 | $1,465 | $244 |
| Hyundai Kona Electric | $2,276 | $1,138 | $190 |
| Hyundai Santa Fe Hybrid | $2,460 | $1,230 | $205 |
| Hyundai Tucson Hybrid | $2,347 | $1,174 | $196 |
| Jaguar I-Pace | $3,054 | $1,527 | $254 |
| Jeep Grand Cherokee 4xe Hybrid | $2,879 | $1,439 | $240 |
| Jeep Wrangler 4xe Hybrid | $2,608 | $1,304 | $217 |
| Kia EV6 | $2,850 | $1,425 | $238 |
| Kia EV9 | $3,064 | $1,532 | $255 |
| Kia Niro EV | $2,239 | $1,120 | $187 |
| Kia Niro Hybrid | $2,128 | $1,064 | $177 |
| Kia Sorento Hybrid | $2,407 | $1,204 | $201 |
| Kia Sportage Hybrid | $2,218 | $1,109 | $185 |
| Lexus ES Hybrid | $2,951 | $1,476 | $246 |
| Lexus NX Hybrid | $2,668 | $1,334 | $222 |
| Lexus RX Hybrid | $2,725 | $1,363 | $227 |
| Lexus UX | $2,490 | $1,245 | $208 |
| Mazda CX-90 Hybrid | $2,784 | $1,392 | $232 |
| Mercedes-AMG EQS | $5,648 | $2,824 | $471 |
| Mercedes-Benz EQB | $2,879 | $1,440 | $240 |
| Mercedes-Benz EQE | $3,862 | $1,931 | $322 |
| Mercedes-Benz EQE SUV | $3,639 | $1,819 | $303 |
| Mercedes-Benz EQS | $4,786 | $2,393 | $399 |
| Mercedes-Benz EQS SUV | $4,663 | $2,331 | $389 |
| Mini Cooper Electric | $2,099 | $1,050 | $175 |
| Mitsubishi Outlander Hybrid | $2,671 | $1,336 | $223 |
| Nissan Ariya | $3,059 | $1,529 | $255 |
| Nissan Leaf | $2,396 | $1,198 | $200 |
| Polestar 2 | $3,367 | $1,683 | $281 |
| Porsche Cayenne Turbo E-Hybrid | $4,074 | $2,037 | $339 |
| Porsche Taycan | $5,073 | $2,537 | $423 |
| Porsche Taycan Cross Turismo | $4,981 | $2,490 | $415 |
| Subaru Solterra | $2,647 | $1,324 | $221 |
| Tesla Model 3 | $3,466 | $1,733 | $289 |
| Tesla Model S | $5,074 | $2,537 | $423 |
| Tesla Model X | $4,805 | $2,403 | $400 |
| Tesla Model Y | $3,529 | $1,765 | $294 |
| Toyota bZ4X | $2,699 | $1,350 | $225 |
| Toyota Corolla Cross Hybrid | $2,218 | $1,109 | $185 |
| Toyota Crown | $2,871 | $1,435 | $239 |
| Toyota Grand Highlander Hybrid | $2,515 | $1,258 | $210 |
| Toyota Highlander Hybrid | $2,328 | $1,164 | $194 |
| Toyota Mirai | $3,064 | $1,532 | $255 |
| Toyota Prius | $2,415 | $1,207 | $201 |
| Toyota Prius Prime | $2,666 | $1,333 | $222 |
| Toyota RAV4 Hybrid | $2,189 | $1,094 | $182 |
| Toyota Tundra Hybrid | $2,755 | $1,377 | $230 |
| Toyota Venza | $2,240 | $1,120 | $187 |
| Volkswagen ID.4 | $2,318 | $1,159 | $193 |
| Volvo C40 Recharge | $3,139 | $1,569 | $262 |
| Volvo XC40 Recharge | $2,853 | $1,426 | $238 |
Why do electric vehicles cost more to insure?
According to Consumer Reports, EVs cost more to insure than gas-powered cars because insurance companies don’t have the historical data to review for EVs as they do for gasoline vehicles.
David Griffin Jr., senior vice president for The Dowd Agencies in Holyoke, Massachusetts, says you will typically pay more to insure an electric or hybrid vehicle than a conventional car.
“This is primarily because these cars are more expensive and also have higher repair costs,” Griffin says. “Because certain components are so expensive to replace – like the battery packs – even a simple accident can cost a lot of money.”
Hybrid and electric car insurance costs can be higher because of the increased risk of theft and vandalism. But there’s good news.
“As more repair shops and a larger volume of parts become available and more affordable, insurance is gradually becoming less expensive for hybrids and EVs,” says Janet Ruiz, director of strategic communications for the Insurance Information Institute.
What are the insurance requirements and coverage options for electric cars?
Auto insurance for EVs and hybrids functions similarly to coverage for gasoline or diesel-powered cars. Every state except New Hampshire mandates minimum limits for liability coverage when you drive an EV, as with any type of car; also, collision and comprehensive coverage may be required if you are leasing or financing or leasing an EV, but remains optional if you fully own your vehicle.
When selecting insurance, you can access the same coverage options as with a gas-powered car. These include liability, comprehensive and collision coverage, along with medical payments (MedPay), personal injury protection (PIP), and uninsured/underinsured motorist coverage. These standard policies provide essential protection regardless of whether your vehicle runs on electricity or gasoline.
Given that electric and hybrid cars tend to be more valuable and can be more costly to repair or replace than gas-only vehicles, it’s worth considering additional coverages. New car replacement, rental car reimbursement and gap insurance are recommended.
Which insurance companies provide cheap car insurance for electric cars?
Major auto insurance carriers like State Farm, Nationwide, Geico, Progressive, Farmers and Allstate offer electric vehicle insurance. The table below highlights the average annual rates for EVs by insurance company.
Select your car's make and model below to view the insurance company and its average six-month rates for electric vehicles.
What are the insurance costs for popular electric car models?
Are you curious about how much a policy will cost for an in-demand EV? The average rates can vary from $2,985 for a Cadillac LYRIQ to $3,529 for a Tesla Model Y. The table below shows more rates for popular EVs.
| Popular make model | Annual rates | Six-month rates | Monthly rates |
|---|---|---|---|
| Tesla Model Y | $3,529 | $1,765 | $294 |
| Tesla Model 3 | $3,466 | $1,733 | $289 |
| Ford Mustang Mach-E | $2,851 | $1,426 | $238 |
| Hyundai Ioniq 5 | $2,721 | $1,360 | $227 |
| Ford F-150 Lightning | $2,743 | $1,372 | $229 |
| Cadillac LYRIQ | $2,985 | $1,492 | $249 |
Is auto insurance for Teslas different from other electric cars?
Insurance for Teslas isn’t different than for any other EV, other than it tending to be more expensive. The cost of insuring Tesla vehicles is higher than that of other EVs or hybrids. This is primarily because Teslas have higher sticker prices, which result in higher insurance premiums.
Fred Balkin, a personal injury attorney with Stein Sperling in Rockville, Maryland, says the cost of the parts and labor to fix an EV or hybrid is higher.
“Tesla, for example, can only be repaired in designated body shops certified by Tesla. And many electric vehicle owners are surprised when they are told by their collision repair shop that their auto collision insurer will only cover the repairs up to a certain point and that any further charges must be paid out of pocket by the owner,” Balkin says. “In many cases, the owner may have to contribute up to 40% of the total repair bill for an electric vehicle.”
What factors influence the cost of insuring an electric car?
When it comes to insuring an electric car, insurance companies consider many factors, such as your age, driving record, location and mileage.
Additionally, the repair costs of a particular vehicle come into play.
“Electric vehicles are generally more expensive to repair for several reasons,” says Kevin Kramer, COO at Ignition Dealer Services. “First, they’re loaded with costly specialized parts like sensors and cameras. They’re also packed with advanced technology and software-based systems, which often means components have to be replaced rather than repaired — things like touchscreens, control modules, or sensors usually can’t be fixed the old-fashioned way. Then, there’s the issue of finding a repair shop that knows how to handle EVs properly. Not every mechanic is trained in EV repairs, so drivers are often limited to specialized technicians with higher labor charges.”
How your driving profile affects EV insurance rates
As with other types of car insurance, your driving record impacts your EV insurance rates. Generally, drivers without violations pay less for coverage than those with past violations.
For example, a driver with a speeding ticket or an at-fault accident will likely pay more for insurance than someone without infractions.
How do location and ZIP code affect EV insurance rates?
Where you live and drive significantly impacts your EV insurance rates. Your ZIP code is tied to metrics like congestion, accident rates, thefts and vandalism. If you live in an area with more vandalism and higher accident rates, you’ll likely pay more for coverage.
How to find affordable electric car insurance
You can find cheaper coverage for your EV if you shop around and compare rates from different carriers. Comparing premiums, coverage limits and deductibles can help you find the best deal.
“Most insurance companies insure electric vehicles,” says Janet Ruiz, director of strategic communication for the Insurance Information Institute. “The rates are based on driving record, miles driven, driving experience, cost to repair the vehicle, and, in many states, credit score.”
How do you save on electric car insurance?
Some insurers offer specific discounts for owning an electric or hybrid vehicle. But you may also shave dollars off your premium by qualifying for other discounts and pursuing particular strategies, including:
- If you purchase two or more types of insurance from the same carrier, like home and auto, bundling your insurance policies can yield substantial savings.
- Capitalize on low-mileage discounts: Some carriers provide discounts to drivers and carpoolers who travel less than expected miles annually.
- Equip your vehicle with anti-theft devices.
- Maintain a good credit history.
- Earn a loyalty discount by being a longtime customer.
- Keep a clean driving record (no accidents or moving violations in the past three years).
Dennis Shirshikov, a professor of economics at City University of New York/Queens College, highlights additional money-saving strategies.
“Some insurers also offer usage-based insurance programs that reward low-mileage drivers, which can be particularly beneficial for EV owners who primarily use their vehicle for short commutes,” he says. “Another strategy is to increase your deductible, which can lower the premium, although this comes with the risk of higher out-of-pocket costs in the event of a claim.”
Can electric vehicles help you save in other ways?
Yes. EVs have lower maintenance costs as they don’t need the services that gas-powered vehicles do, such as tune-ups and oil changes. Teslas, for example, could need a new battery, tires and tire rotation, air filters and A/C service, and brakes, but that’s the extent of the maintenance.
FAQs: Electric car insurance
Is insurance for hybrid or electric cars more expensive than gas-powered cars?
Research shows that it can be costlier today to insure an electric or hybrid vehicle than a gasoline-powered automobile, depending on the make, model and year. Hybrids and EVs can also have more expensive parts, and not all auto shops have experience with these vehicles.
Which companies offer electric car insurance discounts?
Auto-Owners and Travelers offer green vehicle discounts.
What are the cheapest and most expensive EVs to insure?
The most expensive EVs to insure are the Mercedes-AMG EQS ($5,648 per year), Audi e-tron GT ($5,528 annual premium), BMW i7 ($5,074), Tesla Model S ($5,074 annual premium) and Porsche Taycan ($4,074 annual premium).
The cheapest EVs to insure are the Mini Cooper Electric ($2,099 annual premium), Kia Niro EV ($2,239), Hyundai Kona Electric ($2,276), Volkswagen ID.4 ($2,318) and Nissan Leaf ($2,396).
Are electric cars cheaper to insure?
No. EVs typically are more expensive to insure because they cost more to purchase and pose a greater financial risk to the insurer. More risk means higher insurance rates.
Does the cost of battery replacement affect insurance rates?
Insuring EVs is often more expensive than insuring gas-powered cars due to several factors, including the fact that their batteries are costly to repair or replace. Additionally, fewer repair shops specialize in EVs, which can increase insurance rates.
The high cost of repairs, the complexity of handling battery issues, and the safety risks involved with battery maintenance all contribute to the higher insurance premiums. Replacing a battery, which can be up to 50% of the vehicle’s price, is sometimes more economical than repairing it.
Consider the expensive minerals needed for EV batteries, such as lithium, nickel and cobalt, which are in limited supply and high demand. Since the battery is the most costly component of an EV, this significantly impacts the vehicle’s overall price. However, as the EV market evolves, prices are expected to decrease.
Do EVs qualify for usage-based insurance programs?
Yes, EVs qualify for usage-based insurance programs. For infrequent drivers, this could lead to more affordable coverage.
Resources & Methodology
Sources
- Consumer Reports. “Electric Vehicles May Cost More to Insure Than Gasoline-Powered Cars.” Accessed May 2025.
- Experian. “Electric Vehicles: 2024 Year in Review.” Accessed May 2025.
- Insurance Thought Leadership. “Electric Vehicles: A Case for UBI.” Accessed May 2025.
Methodology
CarInsurance.com commissioned Quadrant Information Services in 2024 to field rates for a 40-year-old male driver with good credit, full coverage (100/300/100) and $500 deductibles for 1,439 vehicle models in 501 cities. CarInsurance.com commissioned survey company Slice to survey drivers nationwide in 2024 about their driving habits, favorite driving songs, the best roads and DMVs, inflation and attitudes about car insurance.
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs