CarInsurance.com Insights
- 71% of drivers are not considering an EV purchase.
- Among those who are, cost savings on fuel and maintenance is the top motivator (76%).
- Limited charging availability is now the No. 1 barrier — cited by 55% of non-considerers.
- Higher insurance costs are also a stated concern among drivers avoiding EV purchases.
A CarInsurance.com survey of 1,510 drivers finds that nearly 3 in 4 Americans are not considering the purchase of an EV, with charging access, range anxiety and battery reliability cited as the top concerns.
The Pew Research Center reported that one-third of Americans would very or somewhat seriously consider purchasing an electric vehicle (EV) as their next vehicle, according to 2025 data.
In a survey of 1,510 drivers nationwide, CarInsurance.com asked whether they were considering an EV purchase: 71% said no. Only 29% said they were.
Why drivers are considering an EV
Of the 29% considering an EV purchase in the CarInsurance.com study, cost savings dominated the reasoning — a shift from prior years when environmental concerns led the list. Other reasons drivers are considering an EV include:
- Cost savings on fuel and maintenance: 76%
- Environmental benefits: 64%
- Performance and technology: 49%
- Government incentives and tax credits: 31%
- Brand or social appeal: 15%
The fuel and maintenance savings argument has clearly become the primary sell for prospective EV buyers. Nearly two-thirds still cite environmental benefits, but the economics are now the leading edge.
Maintenance: EVs vs. gas-powered vehicles, which costs more?
The perception that EVs are more expensive to maintain than gas vehicles doesn’t hold up to reality, according to AAA. It found that EVs cost about $949 annually to maintain in line with automaker recommendations — about $330 less per year than a gas-powered vehicle.
Still, many drivers remain skeptical, and concerns about long-term reliability — particularly battery performance — show up clearly in the data on why drivers are holding back.
What is holding back drivers from buying an EV?
Among the 71% not considering an EV, the top barriers were infrastructure and reliability concerns — not just sticker price, which has historically topped these lists.
- Limited charging station availability: 55%
- Limited driving range: 50%
- Long-term reliability/battery concerns: 50%
- Higher upfront cost: 47%
- Higher insurance costs: 24%
The shift is notable. In previous surveys, a higher upfront cost was the dominant objection. In this data, charging access has moved to the top — suggesting that as EV prices have gradually come down, the infrastructure gap has become the more pressing concern for skeptical buyers.
“EV sales gain more traction each year, but we know that consumers still have a lot of questions about them, such as battery life and ease of charging,” said AAA’s Megan McKernan, manager of the association’s Automotive Research Center.
Drivers also expressed uncertainty about EV battery repair costs, and not without reason. The cost to replace an EV battery can skyrocket to $20,000, according to J.D. Power.
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Are EVs more expensive to insure?
Insuring an electric vehicle will generally cost more than insuring an equivalent gas-powered car — and it’s one of the reasons cited by drivers in the survey for avoiding an EV purchase.
A variety of factors explain the higher premiums. Electric vehicles are more expensive to replace, and their parts are more costly. If the battery pack is damaged, repair shops must follow specific safety protocols that increase the repair/replacement cost. There are also fewer qualified repair technicians and those facilities tend to charge higher rates for specialized work.
All of this means potentially higher costs for insurers when a claim is filed — and those costs get passed on through higher premiums.
How much does it cost to insure an EV?
The average cost to insure an electric vehicle varies widely from about $2,500 per year on the low end to more than $6,400 for a premium vehicle like an Audi RS E-Tron GT, according to a CarInsurance.com analysis. Fiat 500e tops the list as the cheapest EV to insure, followed by the Hyundai Kona Electric and Kia Niro EV.
That compares to an average annual car insurance rate of $2,513 for 100/300/100 full-coverage insurance, based on 40-year-old drivers with clean records and good credit.
Final thoughts: Electric vehicles
Most drivers aren’t ready to go electric — but the reasons are shifting. The infrastructure gap is now the dominant obstacle, overtaking upfront cost for the first time. Until charging access becomes as routine as pulling into a gas station, the 71% of drivers who say no are likely to stay put.
Resources & Methodology
Sources
Cox Automotive Inc. “Electric Vehicle Sales Report.” Accessed March 2026.
Edmunds.com. “Big Gap Remains in Average Price of Electric Car vs. Gas Car.” Accessed March 2026.
J.D. Power. “How Much Do EV Batteries Cost.” Accessed March 2026.
Pew Research Center. “Americans’ interest in purchasing electric and hybrid vehicles.” Accessed March 2026.
Methodology
CarInsurance.com commissioned Dynata in March 2026 to field a survey asking 1,510 people about their insurance products, 1,415 of whom reported having auto insurance. CarInsurance.com commissioned Quadrant Information Services to get car insurance rates. The rates are based on the sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
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