Car insurance for electric vehicles

Car insurance for electric vehicles is more expensive than car insurance for gas-powered vehicles, but there are things you can do to save money on your car insurance.

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Many people don’t think about car insurance costs before purchasing an electric vehicle and are surprised when their insurance premiums are much higher than they were expecting. 

The average cost of car insurance for electric vehicles is around $2,400 a year. Compare that to the general cost of car insurance in the United States, which is around $1,650. 

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Insurance costs can be higher for electric cars because the cost to purchase and repair an electric vehicle are higher than their gas-powered counterparts. Even though rates are higher for electric vehicles, you can still save money on car insurance by comparing quotes from several companies before you buy a policy.

Key Takeaways

  • Electric cars are typically more expensive to insure than conventional gas cars

  • Hybrid cars are more expensive to insure than gas-only cars but less expensive to insure than electric-only cars

  • Tesla offers a proprietary car insurance product called Tesla Insurance, but it’s only available in Texas and California

  • Of the most popular electric cars in the U.S., the Nissan Leaf is the cheapest to insure at $1,995 a year

Electric car insurance costs by company

Each insurance company has their own system for setting rates, so it is possible for two different companies to charge wildly different rates for exactly the same coverage. Below are the rates for electric vehicles from 16 major car insurance companies: 

CompanyAverage annual premium
MAPFRE$1,465
USAA$1,483
Erie$1,604
State Farm$1,607
21st Century Insurance$1,747
GEICO$1,856
Nationwide$1,899
Travelers$1,933
Amica$2,099
Farmers$2,566
Progressive$2,804
The Hartford$2,883
Chubb$2,911
AIG$3,897
Allstate$3,470
MetLife$3,797

Electric car insurance costs by state

Your location plays a big role in how much you pay for insurance. Some states have laws and regulations that lead to much higher rates than other states, so it is important to take your location into account when getting a quote for auto insurance.

The chart below shows the average annual premium for electric vehicles by state, based on the four most popular electric vehicles in the country:

StateAverage cost of car insurance for electric cars
Alaska$2,077
Alabama$2,592
Arkansas$2,833
Arizona$2,305
California$2,803
Colorado$2,712
Connecticut$2,675
DC$2,905
Delaware$2,752
Florida$3,745
Georgia$2,320
Hawaii$1,515
Iowa$1,891
Idaho$1,666
Illinois$2,051
Indiana$1,896
Kansas$2,676
Kentucky$3,115
Louisiana$3,705
Massachusetts$2,273
Maryland$2,609
Maine$1,709
Michigan$3,432
Minnesota$2,070
Missouri$2,529
Mississippi$3,086
Montana$2,578
North Carolina$1,356
North Dakota$2,176
Nebraska$2,826
New Hampshire$1,872
New Jersey$2,777
New Mexico$2,225
Nevada$3,083
New York$2,936
Ohio$1,536
Oklahoma$2,685
Oregon$1,887
Pennsylvania$2,539
Rhode Island$2,885
South Carolina$2,653
South Dakota$2,356
Tennessee$2,079
Texas$2,489
Utah$2,167
Virginia$2,325
Vermont$1,790
Washington$2,265
Wisconsin$1,701
West Virginia$2,582
Wyoming$2,257

Electric car insurance costs by car 

The electric car you choose can impact how much you pay for car insurance. The chart below shows average rates for full coverage for the most popular electric vehicles in the U.S.:

VehicleAverage cost of car insurance
Chevrolet Bolt EV$2,015
Nissan Leaf$1,955
Tesla Model 3$2,855
Tesla Model Y$2,884

Why do electric vehicles cost more to insure?

In general, insurance premiums for electric cars are more expensive than car insurance for similarly-priced cars that run on gas. There are two main reasons car insurance is more expensive for electric cars:

  1. Electric cars cost more. For cars that come in both versions — like the Kia Soul, the Chevy Spark, or the Ford Focus — the electric model is significantly more expensive than the conventional gas model. So just like luxury cars cost more to insure than cheap, no-frills cars, electric cars are more expensive to insure, too.

  2. Electric car repairs cost more. In addition to costing more out the gate, electric cars also cost more if they need to be repaired after an accident. Not only do they require special (and expensive) parts, they also require special (and expensive) technicians. According to We Predict [1] electric vehicle repairs cost less over time because they have fewer parts and need fewer repairs overall, but the cost of the individual repairs for an electric vehicle average at $306, while costs for individual repairs for a gas-powered car average at $189.

The chart below compares the sales price between gas-powered and electric versions of the cars mentioned above, according to Kelley Blue Book:

Car typeMSRP
2021 Kia Soul LX$18,610
2021 Kia Soul EV$35,000
2018 Ford Focus S hatchback$21,500
2018 Ford Focus EV hatchback$30,000

There was a federal tax credit that was designed to help reduce the overall expense of owning an electric vehicle, but that tax credit was limited to the first 200,000 electric vehicles sold by each company and began phasing out in 2019, so it might not be available to you if you purchase an electric vehicle today, depending on what make of car you buy.

What about hybrid cars?

Buying insurance for hybrid cars, also called hybrid electric vehicles, is similar to buying insurance for all-electric vehicles or gas-only cars.

Hybrid cars are typically more expensive to insure than gas-only cars but less expensive to insure than electric-only cars, for the same reasons: they are more expensive to buy and repair than gas-powered cars.

Car insurance for Teslas

While Tesla owners can buy car insurance from regular car insurance companies just like for other electric cars, you have one additional option when buying car insurance for Teslas: Tesla’s proprietary car insurance product, available in Texas, California, Illinois, Arizona, and Ohio. 

Tesla vehicles use telematics, which is a tracking system built into the car that records things like mileage, acceleration, braking, battery charges, and other information. The company uses this information to send updates to your car, but also to set your insurance rates if you purchase insurance through Tesla.

→ Learn more about buying car insurance for Teslas

How to get car insurance for electric vehicles

The process of buying car insurance for your electric car is the same as for a conventional car. You can break it into three basic steps:

  1. Decide how much coverage you need. Your state likely mandates a minimum amount of some coverages, like bodily injury and property damage liability coverage, while others you should pick based on your financial situation and your risk threshold, like comprehensive and collision coverage. Consider how much insurance you need to make sure you are fully protected in the event of an accident.

  2. Get quotes. Once you know how much coverage you want to buy, it’s time to get quotes. Policygenius can provide quotes from multiple companies to make sure you are getting the best rate. 

  3. Vet your quotes, pick a policy and pay your premium. Once you get your quotes back, research the providers, and choose a policy. Pay your premium, either through the broker or directly to the company, and you’re insured.

→ Read about the best car insurance companies

How to save money on car insurance for electric vehicles

There are a number of ways to reduce your car insurance rates, including:

  • Take advantage of discounts: Many insurance companies offer discounts to people who drive electric vehicles, as well as to safe drivers, drivers with low annual mileage, and full-time students who maintain above a certain GPA.

  • Keep your driving record clean: Avoiding accidents and moving violations is the best way to keep your insurance rates as low as possible.

  • Maintain good credit: In most states, insurance companies are allowed to consider your credit rating when determining your insurance rates. Keeping your credit rating as high as possible can help keep your insurance rates low.

  • Compare quotes: Comparing quotes from multiple insurance companies is a good way to make sure you are paying the lowest possible rate.

  • Bundle policies. Insurance companies often offer significant discounts to people who buy all of their insurance policies (auto, homeowners, renters, motorcycle) from the same company.

Frequently Asked Questions

Why is it more expensive to insure an electric car?

Electric cars are more expensive to repair and replace than a traditional, gas-powered car. These costs play a big part in setting insurance rates, which is why insurance for electric vehicles is more expensive than for their gas-powered counterparts.

Are electric cars more expensive to maintain?

Yes and no. Electric car repairs are more expensive, but they have fewer moving parts than a traditional car, which means there is significantly less to repair overall. As a bonus, not having a combustion engine means they don’t need spark plugs, timing belts, oil changes, or other things considered routine maintenance in a gas-powered car.

Do electric cars need oil changes?

No, they don’t. Oil is used to keep the moving parts in a standard, combustion engine lubricated. Electric cars have a motor, not a combustion engine, and therefore don’t need oil to run properly.

Can you plug an electric car into a regular outlet?

Yes, every electric vehicle comes with an attachment that allows them to be plugged into a standard 110v outlet. Charging an electric vehicle this way is very slow, however, and drivers who have a long commute or regularly travel long distances may want to install an EV charging station as a more efficient way to charge their car.

What about insurance for at-home EV charging stations?

In addition to car insurance, you may also need to add coverage to your homeowners insurance policy if you have a plug-in electric car and you decide to install an at-home charging station. If you have a charging station, ask your homeowners insurance company if your policy covers charging stations for plug-in electric vehicles or if you need to purchase additional coverage.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.