Electric car insurance: What to know

Car insurance for electric vehicles is more expensive than coverage for a gas-powered model, but you can still find cheap rates by comparing quotes and searching for discounts.

Rachael Brennan headshotAndrew Hurst

By

Rachael Brennan

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

&Andrew Hurst

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Updated|6 min read

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Electric car insurance costs are higher than for non-electric vehicles. On average, the cost of electric car insurance is $206 per month (or $2,468 per year). That’s $44 more per month than the cost to insure a gas-powered car.

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Besides cost, insurance coverage for electric cars is no different than for a gas-powered vehicle. You can get EV insurance from the same companies as the owner of a gas-powered car. We found that MAPFRE is the cheapest company for electric car insurance. Larger companies like USAA and State Farm also have cheap quotes for electric vehicles.

What is the cost of electric car insurance?

The cost of car insurance for electric cars is $206 per month, though the average premium depends on the model. Our quote comparison for the cost of electric car insurance for some of the most popular EVs found that the Nissan Leaf is the cheapest model to insure at $170 per month.

Cost of insurance for EVs

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The cost of insurance for electric cars also depends on your company. For example, electric car insurance costs $111 per month with MAPFRE — 46% cheaper than average. On the other hand, with Hanover the cost to insure an EV is 129% more expensive than average.

Since the cost of electric car insurance can depend so heavily on the company, it’s important to compare quotes from multiple companies to be sure you’re getting the best rates for your EV.

RankCompanyMonthly cost
1MAPFRE$111
2USAA$114
3Erie$122
4Auto-Owners Insurance$125
5State Farm $125
6Travelers$132
7COUNTRY Financial$144
8American Family$148
9GEICO$148
10Farm Bureau$149
11Nationwide$159
12Amica$166
13Average cost$206
14Kemper$209
15Farmers$213
16Mercury Insurance$225
17Progressive$227
18Shelter Insurance$235
19CSAA$248
20Allstate$264
21Auto Club Group$292
22The Hartford$296
23Sentry Insurance$308
24National General$348
25Hanover$472

Monthly cost of full-coverage car insurance for electric vehicles.

Electric car insurance cost vs. other vehicles

We compared the cost of car insurance for 24 popular car models to find out how the cost of insuring an electric car compares with the cost of coverage for gas-powered vehicles. On average, insurance for an electric car is $44 per month more expensive than the cost of insuring a gas-powered car. 

Out of 24 vehicles, the top two most expensive to insure — Tesla's Model Y and Model 3 — are electric. The Chevy Bolt and Nissan Leaf also placed in the top 10 most expensive cars to insure.

RankVehicleAverage annual premium
1Tesla Model Y$248
2Tesla Model 3$231
3Honda Accord$177
4Ram 1500$176
5Toyota Corolla$174
6Toyota Camry$174
7Chevrolet Bolt$174
8Honda Civic$174
9Nissan Leaf$170
10Toyota RAV4$167
11Chevrolet Silverado$164
12Nissan Rogue$162
13Subaru Forester$161
14Ford Explorer$160
15Jeep Grand Cherokee$160
16Toyota Highlander$157
17Jeep Wrangler$156
18Ford Escape$155
19Chevrolet Equinox$153
20Subaru Outback$152
21Toyota Tacoma$152
22GMC Sierra$151
23Honda CR-V$148
24Ford F-150$146

Monthly cost of full-coverage car insurance, sorted from most expensive to cheapest to insure.

Why is insurance higher for electric cars?

There are a couple of reasons why it’s more expensive to get insurance on an electric car. Insurance for EVs costs more because electric cars tend to be more expensive to replace than gas-powered models. This is especially true of high-end electric cars, such as Teslas.

Electric cars also cost more to insure because they have more specialized features than a regular car does. These features cost more to manufacture — and more to repair. When insurance companies determine their rates, they take into account the cost it would take to repair a car after a crash.

Are hybrids more expensive to insure?

Hybrid electric vehicles are more expensive to insure than cars that run only on gas. The reason is because hybrids cost more than most standard gas-powered vehicles. After a crash or a total loss, a hybrid would cost more to repair or replace completely than an all-gas counterpart.

Best car insurance for electric vehicles: Travelers

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Best company for insuring electric cars

Travelers is affordable and has a discount that hybrid and electric vehicle owners can use to lower their rates.

Travelers is the best insurance company for electric cars. On average, coverage from Travelers costs $132 per month (or $1,579 per year). While it’s slightly more expensive than a few of its competitors, Travelers has electric vehicle insurance that’s still 36% cheaper than average.

Electric car owners can lower their premiums even more with the hybrid/electric car discount that Travelers offers. On top of that discount, Travelers also allows drivers to save by: 

  • Signing up for electronic payments

  • Avoiding accidents and tickets for at least three years

  • Completing a training course

  • Requesting a quote before their existing policy expires

  • Owning a home

We also recommend Travelers as the best car insurance for electric vehicles because of its options for additional insurance. Drivers can add new car replacement, roadside assistance, gap coverage for a vehicle paid for with a loan, and accident forgiveness to a regular policy.

Cheapest electric car insurance in every state

MAPFRE is the most affordable company for electric car insurance overall, but it’s not the cheapest company in any one state. Instead USAA is the cheapest electric car insurance company in 20 states, which makes it most often the company with the lowest rates.

For drivers who aren’t in the military, State Farm, Auto-Owners, American National, and GEICO are all cheap companies for electric car insurance. In 31 states, coverage from the company with the cheapest electric car insurance rates costs less than $100 per month.

StateCheapest companyMonthly cost
AlabamaUSAA$114
AlaskaUSAA$107
ArizonaAuto-Owners$100
ArkansasUSAA$107
CaliforniaWawanesa$134
ColoradoAmerican National$87
ConnecticutGEICO$83
DelawareState Farm$114
District of ColumbiaUSAA$123
FloridaState Farm$148
GeorgiaAuto-Owners$119
HawaiiState Farm$96
IdahoAmerican National$52
IllinoisPekin$63
IndianaUSAA$81
IowaPekin$80
KansasUSAA$104
KentuckyGEICO$133
LouisianaUSAA$151
MaineAuto-Owners$62
MarylandUSAA$86
MassachusettsNorfolk and Dedham$111
MichiganGEICO$120
MinnesotaFarm Bureau$89
MississippiUSAA$95
MissouriUSAA$84
MontanaUSAA$94
NebraskaAuto-Owners$118
NevadaGEICO$83
New HampshireAuto-Owners$72
New JerseyPalisades$132
New MexicoUSAA$101
New YorkAmerican Family$99
North CarolinaKemper$76
North DakotaUSAA$85
OhioUSAA$81
OklahomaUSAA$107
OregonState Farm$85
PennsylvaniaErie$93
Rhode IslandState Farm$113
South CarolinaAmerican National$64
South DakotaKemper$104
TennesseeState Farm$86
TexasFarm Bureau$116
UtahUSAA$95
VermontState Farm$77
VirginiaUSAA$83
WashingtonUSAA$95
West VirginiaUSAA$98
WisconsinUSAA$78
WyomingAmerican National$64

Monthly cost of full-coverage car insurance for electric vehicles.

Electric car insurance costs by state

The average cost of insuring an electric vehicle is $206 per month, but cost also depends on the state you live in — among other factors that affect rates. We found that the cost of car insurance for an electric vehicle can vary by as much as $2,502 per year depending on where you live.

On average, the most expensive state for electric car insurance is Florida. In Florida, coverage costs drivers $313 per month, but can get as high as $782 per month. The cheapest state for insurance on an electric car is North Carolina, where rates are $105 per month.

We also found that the difference in electric car insurance costs and premiums for gas-powered vehicles varies by the state. In North Carolina, the difference is the smallest (just $11 per month). The difference is largest in Mississippi, where it costs $79 more per month to insure an electric car.  

StateMonthly costDifference from non-EVs
Alabama$195$33
Alaska$162$39
Arizona$182$34
Arkansas$223$55
California$217$46
Colorado$210$46
Connecticut$224$62
Delaware$219$39
District of Columbia$224$62
Florida$313$78
Georgia$181$24
Hawaii$121$21
Idaho$122$19
Illinois$158$32
Indiana$147$28
Iowa$145$32
Kansas$203$45
Kentucky$247$47
Louisiana$295$62
Maine$130$23
Maryland$209$41
Massachusetts$174$31
Michigan$264$51
Minnesota$160$28
Mississippi$240$79
Missouri$202$47
Montana$194$43
Nebraska$218$45
Nevada$235$42
New Hampshire$150$37
New Jersey$226$33
New Mexico$172$31
New York$223$27
North Carolina$105$11
North Dakota$167$31
Ohio$119$22
Oklahoma$208$36
Oregon$151$25
Pennsylvania$193$37
Rhode Island$224$51
South Carolina$210$36
South Dakota$184$34
Tennessee$162$38
Texas$196$30
Utah$172$33
Vermont$141$32
Virginia$193$68
Washington$180$34
West Virginia$199$44
Wisconsin$132$24
Wyoming$170$29

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Car insurance for Teslas

While you can get auto coverage for a Tesla from any of the major insurance companies, the brand also offers its own insurance that claims can offer drivers lower rates than competitors. Tesla partners with insurance companies to offer its own coverage in the following states:

  • Arizona

  • California

  • Colorado

  • Illinois

  • Ohio

  • Oregon

  • Texas

  • Virginia

If you sign up for Tesla car insurance, your driving behavior is recorded by your vehicle. The system updates your monthly premium based on the distance you keep from other cars, your braking, speed, turning, and use of the car’s autopilot. 

→ Read more about how car insurance for a Tesla works

How to save money on car insurance for electric vehicles

Although the cost of electric car insurance can be expensive, it’s still possible to get affordable coverage. In addition to comparing quotes to get the lowest rate, take the following steps to reduce car insurance costs for EVs:

  • Search for discounts: Almost every company offers drivers a few discounts that lead to cheaper car insurance. When you’re comparing companies, pay attention to which ones offer discounts that you’re most likely to qualify for. 

  • Bundle two forms of coverage: You could lower your cost of insurance for an electric car by insuring the vehicle with the company you already use for your home or renters insurance. 

  • Sign up for usage-based discounts: One of the best ways to save money on car insurance is by enrolling in your insurer’s usage-based discount program. As long as you’re a careful driver, you could see much lower rates after you complete the monitoring period.

  • Consider a per-mile insurance plan: If your EV isn’t your primary vehicle or you don’t often have to drive it, you could benefit from per-mile insurance. Under these plans, which are offered by Liberty Mutual, Allstate, and Nationwide, you’re charged by the mile instead of a set amount each month.

  • Increase your deductible: Because electric cars are costly to repair, you may be able to afford to raise your deductible — the amount you pay out of pocket on a comprehensive or collision claim.

How to get car insurance for electric vehicles

There’s no special insurance requirement for electric cars. Instead, the process of getting car insurance for an electric vehicle is the same as it is for a conventional, gas-powered car. To get electric car insurance, you should: 

  1. Decide how much coverage you need

  2. Shop for coverage

  3. Compare quotes to find the best rates

  4. Pick a company and select a start date

  5. Cancel your old policy

→ Read more about how to shop for insurance and get covered

Frequently Asked Questions

Are electric cars more expensive to insure?

Yes, electric cars are more expensive to insure. This is because EVs cost more to repair and replace than a traditional, gas-powered car.

Are electric cars more expensive to maintain?

It depends. Electric car repairs are more expensive, but there are fewer parts than a gas-powered car to repair. For example, an EV doesn’t need new spark plugs, timing belts, or oil changes. Over time, the cost of increased electricity use also stays cheaper than the cost of getting gas.

What is the best insurance company for electric cars?

Travelers has the best insurance for electric cars. On average, the company’s cost of electric car insurance is 36% less than average. It also has a range of coverage options and discounts that drivers can use to lower their rates even more — including one for hybrid and electric cars.

Methodology

Policygenius found the cost of insurance for an electric car by analyzing rates provided by Quadrant Information Services. We calculated the average premium for drivers living in every ZIP code in all 50 states plus Washington, D.C. The rates we used were for full-coverage insurance, and had the following limits:

  • 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.

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