Do electric cars cost more to insure?
Electric cars cost more to insure on average because they often have higher purchase prices, advanced technology and more expensive repairs. The average cost of electric car insurance is $3,708 a year, which is well above the national average for all cars.
An electric car's higher price tag and more complex equipment mean it may cost more to repair or replace than a gas-powered auto if it's in an accident. That can mean higher rates for policyholders who carry comprehensive and collision coverage.
How much does it cost to insure an electric car?
The average cost to insure an electric vehicle is $3,708, based on full coverage rates from national carriers, but premiums vary by make and model. The Audi e-Tron GT is the most expensive EV to insure in this comparison at $6,413 annually. The Fiat 500e is the cheapest at $2,447 a year.
But rates vary depending on many factors, including the vehicle’s make and model.
The most expensive electric car to insure is the Audi e-Tron GT, with an average annual premium of $6,413. The BMW i7 is right behind it, however, averaging $6,095. The third most expensive electric vehicle to insure is the Mercedes-AMG EQS at an average of $5,866 a year.
| Model name | Monthly premium | 6-month premium | Annual premium |
|---|---|---|---|
| Audi e-tron GT | $534 | $3,207 | $6,413 |
| BMW i7 | $508 | $3,046 | $6,092 |
| Mercedes-AMG EQS | $489 | $2,933 | $5,866 |
| Porsche Taycan | $480 | $2,881 | $5,761 |
| Porsche Taycan Cross Turismo | $479 | $2,875 | $5,749 |
| Lucid Air | $475 | $2,850 | $5,701 |
| Tesla Model X | $455 | $2,731 | $5,462 |
| Mercedes-AMG EQE | $445 | $2,668 | $5,335 |
| Tesla Model S | $440 | $2,642 | $5,285 |
| Mercedes-AMG EQE SUV | $434 | $2,603 | $5,206 |
| Mercedes-Benz EQS | $411 | $2,463 | $4,926 |
| GMC Hummer EV SUV | $404 | $2,425 | $4,849 |
| Mercedes-Maybach EQS SUV | $395 | $2,368 | $4,735 |
| GMC Hummer EV Pickup | $382 | $2,293 | $4,585 |
| Rivian R1S | $382 | $2,292 | $4,584 |
| BMW iX | $375 | $2,249 | $4,498 |
| BMW i5 | $372 | $2,230 | $4,461 |
| Tesla Cybertruck | $368 | $2,207 | $4,415 |
| Mercedes-Benz EQS SUV | $364 | $2,183 | $4,365 |
| Volvo EX90 | $357 | $2,145 | $4,289 |
| Genesis Electrified G80 | $348 | $2,087 | $4,173 |
| Audi SQ6 e-tron | $347 | $2,084 | $4,168 |
| Polestar 3 | $346 | $2,077 | $4,153 |
| Dodge Charger Daytona EV | $337 | $2,022 | $4,044 |
| BMW i4 | $334 | $2,003 | $4,006 |
| Rivian R1T | $333 | $2,001 | $4,002 |
| Tesla Model 3 | $323 | $1,935 | $3,871 |
| Tesla Model Y | $320 | $1,918 | $3,836 |
| Audi Q6 e-tron | $317 | $1,905 | $3,809 |
On the other side, the cheapest electric car to insure is the Fiat 500e at an average cost of $2,447 a year. It's followed by the Hyundai Kona Electric at $2,544 a year and the Kia Niro EV at $2,654 a year.
| Model name | Monthly premium | 6-month premium | Annual premium |
|---|---|---|---|
| Fiat 500e | $204 | $1,224 | $2,447 |
| Hyundai Kona Electric | $212 | $1,272 | $2,544 |
| Kia Niro EV | $221 | $1,327 | $2,654 |
| Nissan Leaf | $228 | $1,368 | $2,735 |
| Toyota bZ4X | $231 | $1,384 | $2,768 |
| Chevrolet Equinox EV | $231 | $1,386 | $2,772 |
| Subaru Solterra | $235 | $1,409 | $2,818 |
| Mini Countryman Electric | $235 | $1,412 | $2,824 |
| Ford Mustang Mach-E | $250 | $1,501 | $3,001 |
| Nissan Ariya | $253 | $1,520 | $3,040 |
| Ford F-150 Lightning | $255 | $1,532 | $3,064 |
| Kia EV6 | $257 | $1,539 | $3,078 |
| Honda Prologue | $259 | $1,551 | $3,103 |
| Lexus RZ | $259 | $1,553 | $3,106 |
| Volvo EX30 | $260 | $1,560 | $3,120 |
| Mercedes-Benz EQB | $270 | $1,622 | $3,245 |
| Chevrolet Blazer EV | $272 | $1,631 | $3,261 |
| Audi Q4 e-tron | $274 | $1,646 | $3,292 |
| VinFast VF8 | $275 | $1,651 | $3,303 |
| Cadillac Lyriq | $276 | $1,655 | $3,309 |
| Kia EV9 | $278 | $1,666 | $3,331 |
| Cadillac Optiq | $281 | $1,688 | $3,376 |
| Genesis GV60 | $282 | $1,694 | $3,387 |
| Hyundai Ioniq 5 | $283 | $1,698 | $3,397 |
| Hyundai Ioniq 6 | $288 | $1,727 | $3,455 |
| Genesis Electrified GV70 | $293 | $1,760 | $3,520 |
| Chevrolet Silverado EV | $294 | $1,763 | $3,526 |
| Volkswagen ID.Buzz | $299 | $1,791 | $3,582 |
| GMC Sierra EV | $301 | $1,807 | $3,615 |
Electric car insurance companies
Most car insurance companies cover electric vehicles, and aside from Tesla insurance, there aren't any electric car insurance companies focused solely on electric cars.
Major car insurance companies that write electric car policies include Travelers, Allstate, and GEICO. Our data shows that, among national carriers, Travelers has the cheapest rates for EVs on average, with rates of $2,306 nationwide. USAA follows at $2,922 a year.
Because so many factors affect car insurance rates, it's important to shop around and compare rates for your needs. Take a look at average rates from the top national carriers below.
| Company | Monthly premium | 6-month premium | Annual premium |
|---|---|---|---|
| Allstate | $381 | $2,285 | $4,570 |
| Farmers | $425 | $2,550 | $5,100 |
| GEICO | $262 | $1,573 | $3,146 |
| Nationwide | $271 | $1,625 | $3,250 |
| Progressive | $290 | $1,738 | $3,475 |
| State Farm | $263 | $1,577 | $3,155 |
| Travelers | $192 | $1,153 | $2,306 |
| USAA | $244 | $1,461 | $2,922 |
| National average | $309 | $1,854 | $3,708 |
Does Tesla offer electric car insurance?
Tesla offers its own insurance program for its vehicles. It doesn't insure any other type of EV. Tesla insurance is expensive, and the Tesla program promises lower rates due to its usage-based program. That program uses a "Safety Score" based on monitoring your driving habits as part of the rate calculation.
Tesla's insurance program is underwritten by State National Insurance. Currently, it's available in the following states:
- Arizona
- California*
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
*In California, the Tesla Insurance program doesn't use the Safety Score due to state laws.
Electric vehicles insurance vs. conventional vehicle insurance
Electric vehicles need the same auto insurance coverage as gas-powered cars, including liability, comprehensive and collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible.. You can also buy the same optional coverages, like roadside assistance and rental reimbursement. The main difference is in the cost to insure. EV insurance can cost more because repairs, replacement parts and battery-related damage can be expensive, although some EV models have competitive rates.
Why are electric cars expensive to insure?
Electric cars can cost more to insure because they often have higher purchase prices, specialized parts and complex technology. Repairs can require trained technicians and costly replacement equipment.
Electric cars are more expensive to insure, according to San Diego- based Allstate agent Paul Scalone, because:
- They have a higher purchase price
- They use new technology that's costly to repair or replace.
- EVs are newer to the market and tend to be more challenging -- and thus more expensive – for mechanics to work on
In other words, you have to hire specialized mechanics to fix an electric car, which means you're going to pay more in repairs, which also factors into the insurance premiums.
How to save on electric car insurance
The best way to save on insurance for an EV, or any vehicle for that matter, is to shop around on Insurance.com or another insurance comparison site. You can also lower your costs by choosing the highest deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. you can afford, bundling policies and asking about low-mileage, anti-theft and safe-driving discounts.
In addition to comparison shopping, Insurance.com offers the following savings tips.
- Raise your deductible, which can decrease your premium costs significantly.
- If you purchase two or more types of insurance from the same carrier, such as 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).
Do insurers offer electric vehicle insurance discounts?
Some insurance companies offer discounts for driving electric vehicles, but not many. Some companies that offer an electric or hybrid vehicle include:
- Lemonade
- Travelers
- Farmers
Because discounts vary by state, it's important to ask what's available in your area.
Methodology
Insurance.com commissioned insurance rates for electric vehicles from Quadrant Information Services based on a full coverage policy with liability limits of 100/300/100 and $500 deductibles. Rates were fielded for 1,661 makes and models of electric vehicles and based on a 40-year-old male driver with a clean record and good credit.
FAQ: Electric car insurance
Does insurance cover EV battery replacement?
Auto insurance covers an EV battery when it is damaged in a covered loss, such as a collision. It does not cover normal wear, battery degradation or mechanical problems. Your comprehensive or collision coverage, deductible and policy exclusionsItems that are specifically denied coverage under the terms of an insurance policy. For example, most auto insurance policies exclude coverage for normal wear and tear, drag racing and intentional acts. determine whether the insurer pays for a replacement.
Will insurance cover EV roadside assistance?
Roadside assistance is available on EV car insurance policies just like any other policy. It will cover things like flat tires, lockouts and towing if needed.
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