CarInsurance.com Insights
- Electric vehicle adoption continues to accelerate as more drivers choose EVs for efficiency, incentives and lower fuel costs.
- EV ownership remains concentrated in certain states where charging infrastructure, incentives and policy support are strongest.
- Higher purchase prices still impact insurance costs since repair complexity and battery replacement increase claim severity.
- Insurance pricing for EVs varies widely by model with some electric cars costing significantly more to insure than gas-powered counterparts.
- Long-term trends point toward broader EV affordability as production scales, technology improves and the market matures.
Once considered a futuristic dream, electric vehicles have become a reality on the road. As electric vehicles become more common, it’s helpful to understand the changing EV landscape. Despite an increase in 2024, the percentage of electric cars in the U.S. decreased to 6.5% in February 2026, down from 7.4% for all of 2025, according to Edmunds sales data.
Consumers aren’t all on board. 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%)
What is an electric vehicle?
An electric vehicle uses an electric motor and battery to run instead of the more familiar gasoline or diesel engine. To generate movement, drivers must charge their EVs’ batteries.
In contrast, popular plug-in hybrid electric vehicles combine a battery and electric motor with a standard gasoline- or diesel-powered engine. The combination lowers the amount of gasoline or diesel necessary to operate the vehicle.
Electric vehicle sales trends in the U.S. over time
According to the International Council on Clean Transportation, EV sales have increased every quarter since the third quarter of 2021.
Electric vehicles have been available for purchase for some time, but their popularity has exploded since 2020, despite a small decrease in 2025. The table below highlights EV sales in the U.S. from year to year.
| Year | Sales |
|---|---|
| 2025 | 1.26 million |
| 2024 | 1.3 million |
| 2023 | 1 million |
| 2022 | 980,000 |
| 2021 | 660,000 |
| 2020 | 320,000 |
| 2019 | 310,000 |
Source: Statista
Which states have the greatest EV market share?
California ranks first for EV adoption, followed by Washington, Colorado, Washington, D.C., and Nevada. The table below shows the electric vehicle market share in each state.
What Is the Percentage of Electric Cars in the U.S.?
Speak with a friendly agent and get your quote in minutes!
What are the top EV manufacturers?
Some EV manufacturers are more prevalent than others. The top company is Tesla, with nearly 60% of the market share — an annualized increase of approximately15%. Other top companies include Chevrolet, Hyundai, Rivian, Toyota and Cadillac.
The table below breaks down the market share by manufacturer in the United States.
| Manufacturer | 2025 market share (%) | Jan. 2026 market share (%) |
|---|---|---|
| Tesla | 43.9 | 59.7 |
| Chevrolet | 7.6 | 7.0 |
| Ford | 7.0 | 2.4 |
| Hyundai | 5.5 | 4.5 |
| BMW | 4.3 | 2.9 |
| Cadillac | 4.1 | 3.6 |
| Rivian | 3.8 | 4.2 |
| Kia | 2.8 | 2.5 |
| Mercedes-Benz | 2.0 | 1.3 |
| GMC | 2.0 | 1.3 |
| Toyota | 1.4 | 5.0 |
Source: Edmunds
What are the cheapest electric vehicles to purchase?
Electric vehicles will save you money at the pump. But not all EVs are cheaper than their gas-powered counterparts. The good news is that some EVs are cheaper than others. Below is a look at some of the cheapest electric vehicles on the market today, all of which run $250 or less per month for full coverage.
- Fiat 500e ($204 per month)
- Hyundai Kona Electric ($212 per month)
- Kia Niro EV ($221 per month)
- Nissan Leaf ($228 per month)
- Toyota bZ4X ($231 per month)
- Chevrolet Equinox EV ($231 per month)
- Subaru Solterra ($235 per month)
- Mini Countryman Electric ($235 per month)
- Ford Mustang Mach-E ($250 per month)
Of course, opting for a basic EV with fewer bells and whistles will lower the price point. Also, remember to shop around to find the more affordable option that suits your needs.
What is the environmental impact of electric vehicles?
Many drivers switch to electric vehicles to reduce their negative environmental impact. According to the EPA, here are some ways electric vehicles affect the environment.
- Reduced tailpipe emissions. EVs have no tailpipe emissions, which is an improvement over gas-powered vehicles. It’s worth noting that the electricity used to charge an EV may produce carbon emissions, but this varies depending on the electricity source.
- Improved air quality: EVs can reduce pollutants such as nitrogen oxides, which contribute to smog and particle pollution.
- Reduced climate pollution: EVs have less climate pollution than gas-powered vehicles.
Although EVs offer environmental benefits, the industry also faces challenges. For example, the conditions under which necessary battery components — such as cobalt and lithium — are mined are problematic. Additionally, the recycling of lithium-ion batteries has yet to be efficiently resolved.
Do EVs save money over time compared to gas vehicles?
“EVs can significantly reduce your fuel expenses,” says Rob Dillan, co-founder of EVhype. “On average, charging an EV costs about half as much as fueling a traditional gasoline vehicle.”
Frequently Asked Questions: EVs
How much can I save on fuel costs by switching to an EV?
Depending on your situation, you can expect to spend around 60% less per year on fuel costs when you switch from a gas-powered vehicle.
Do tax incentives still apply to EV buyers?
No. 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.
Resources & Methodology
Sources
- APM Research Lab. “Lithium mining for EVs: How sustainable is it?” Accessed September 2026.
- Bureau of Transportation Statistics. “Hybrid-Electric, Plug-in Hybrid-Electric, and Electric Vehicle Sales.” Accessed September 2026.
- Department of Energy. “Alternative Fuels Data Center.” Accessed September 2026.
- Edmunds.com. “What Is the Percentage of Electric Cars in the U.S.?” Accessed September 2026.
- EPA. “Electric Vehicle Myths.” Accessed September 2026.
Methodology
In the fall of 2026, CarInsurance.com commissioned Dynata to survey 1,471 consumers about their auto insurance and attitudes regarding climate change.
Still have a question? Ask our experts
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs
