EVs, hybrids and plug-in hybrids can be seen frequently on American roads. While car insurance for a green car can be more expensive than a gas-powered vehicle, the difference is not as big as you may think.
In 2023, CarInsurance.com surveyed drivers nationwide, asking them about their thoughts on electric vehicles, car insurance, inflation, the best state Departments of Motor Vehicles and more. Out of 2,300 survey respondents, 21% said they are considering the purchase of an EV.
Drivers said that not having to pay for gas was the biggest reason they’re considering an EV purchase — to the tune of 40%. Other reasons? Climate change anxiety is why 27% of drivers would buy an EV, and 19% said lower maintenance costs could induce them to purchase an electric car.
If you’re interested in learning how to get cheap insurance with an EV, keep reading.
- Electric vehicles and hybrids are typically more expensive to insure than gas-powered vehicles.
- EVs and hybrids come with higher sticker prices, are more expensive to repair and have a big expensive battery under the hood.
- Insurance rates for electric vehicles and hybrids vary dramatically between insurers, so it pays to shop for coverage regularly.
How much does car insurance cost for a hybrid?
When we ran the numbers, insurance rates for a hybrid ranged from $1,442 for a Jeep Wrangler to $3,922 for an Audi RS6 Avant Quattro.
A hybrid is a vehicle that has both a gasoline engine as well as an electric motor. Hybrids operate as electric vehicles under certain conditions and the gas-powered motor kicks in when necessary. The Toyota Prius is probably the best-known example of a hybrid, but there are now many hybrids to choose from, and most automakers have at least a few hybrids in their lineup.
Like internal combustion vehicles, the cost to insure a hybrid can vary dramatically depending on the car. Insurers consider various factors, including the price of the vehicle, repair costs, safety features and personal risk factors.
Cheapest hybrids to insure
Here are the top five cheapest hybrids to insurance and the annual premium based on our data:
- Jeep Wrangler: $1,442
- Honda CR-V: $1,449
- Ford Escape: $1,487
- Kia Niro: $1,526
- Toyota Venza: $1,569
See the rates for the cheapest hybrids to insure in the table below.
| Make Model | Avg. Annual Premium |
|---|---|
| Jeep Wrangler | $1,442 |
| Honda CR-V | $1,449 |
| Ford Escape | $1,487 |
| Kia Niro | $1,526 |
| Toyota Venza | $1,569 |
| Toyota RAV4 | $1,577 |
| Subaru Crosstrek | $1,624 |
| Chrysler Pacifica | $1,648 |
| Toyota Highlander | $1,660 |
| Honda Insight | $1,661 |
| Honda Accord | $1,665 |
| Hyundai Santa Fe | $1,667 |
| Kia Sorento | $1,689 |
| Toyota Sienna | $1,691 |
| Lexus UX 250h | $1,699 |
| Toyota Camry | $1,712 |
| Hyundai Elantra | $1,756 |
| Dodge Ram 1500 | $1,764 |
| Volvo XC60 B5 | $1,767 |
| Hyundai Tucson | $1,770 |
Are hybrids cheaper to insure?
Hybrids are often more expensive to insure than their internal combustion counterparts due to the higher sticker price and the fact that they usually cost more to repair.
A hybrid has a gas engine and a small electric motor, pushing the sticker price and repair costs. In addition, hybrids have a battery to power the electric motor, which is expensive to replace or repair. All of these factors lead to more expensive car insurance.
Learn more about how much electric car insurance costs
What is a green vehicle?A green vehicle uses alternative fuel or a combination of alternative fuel and gasoline to reduce emissions and create less pollution. Sales of vehicles that operate on other fuels – like electricity – are growing, according to the EPA. Other alternative fuel vehicles run on compressed natural gas or E85 (ethanol and gasoline).
How much does car insurance cost for an electric car?
The average yearly cost for electric car insurance is $2,053. Insurance rates range from $1,479 to $4,150 annually. The size of the vehicle and its bells and whistles matter.
The cheapest EVs to insure are smaller, compact vehicles with a reasonably low (for an EV) starting price. Compact cars are cheaper to insure regardless of whether the engine under the hood runs on electricity or gas.
Cheapest EVs to insure
The cheapest electric vehicle to insure was the Mini Cooper SE, with an annual premium of $1,479. The Mini comes with a very affordable starting price (for an EV) of $34,225, a compact size and affordable repair costs, which means cheaper car insurance.
The second-cheapest EV to insure is the Hyundai Kona, with an annual premium of $1,507. It is followed by the Kia Niro, at $1,650 and the Chevy Bolt, at $1,780. These EVs have a starting price of less than $40,000; the Chevy—the cheapest of the bunch—has a starting price of $25,000.
The Ford F-150 Lightning Lariat rounds out the top five with an annual premium of $1,792. However, this electric truck has an MSRP of around $75,000, making it the most expensive EV of the top five cheapest EVs to insure.
Pickups are cheaper to insure because the vehicle’s back end is simply a bed that can be easily repaired or replaced, making repair costs more affordable. Pickups are often driven by people who live in the country, and rural communities have less traffic and fewer accidents and claims, all of which lead to lower insurance costs.
See the rates for the cheapest EVs in the table below.
| Make Model | Avg. Annual Premium |
|---|---|
| Audi E-Tron | $2,024 |
| Chevrolet Bolt EV | $1,780 |
| Ford F-150 | $1,792 |
| Ford Mustang | $1,965 |
| Hyundai Ioniq | $1,882 |
| Hyundai Kona | $1,507 |
| Hyundai Nexo | $1,904 |
| Jaguar I-Pace HSE | $2,340 |
| Kia Niro | $1,650 |
| Mazda MX-30 | $1,961 |
| Mini Cooper SE | $1,479 |
| Nissan Leaf | $1,822 |
| Porsche Taycan | $3,319 |
| Porsche Taycan 4 Cross Turismo | $2,920 |
| Porsche Taycan GTS Sport Turismo | $2,920 |
| Tesla Model 3 | $2,454 |
| Tesla Model X Long Range | $3,182 |
| Tesla Model Y | $2,377 |
| Toyota Mirai XLE | $2,175 |
| Volvo XC40 Pure Electric | $2,785 |
Check out our detailed guide on what you need to know about insuring an electric car
Car insurance rates for green vs. gas-powered vehicles
Electric cars cost more to insure than standard gasoline cars because they have different parts and require specialized service and maintenance. Another factor is their overall cost. The pricier a vehicle, the more it costs to insure. How much more you will pay to cover an EV or hybrid will vary depending on the car and personal risk factors.
“An electric car’s higher price tag and more complex equipment mean it may cost more to repair or replace if it’s in an accident, ” says Tim Derham, CEO at Universal Casualty. “In addition, there aren’t as many shops with technicians qualified to fix electric vehicles, which means qualified facilities may charge more for repairs because of the specialized training required.”
Here are a couple of examples:
- Gasoline-powered Mitsubishi Outlander: $1,697
- Hybrid Mitsubishi Outlander: $1,890
- Gasoline-powered Toyota RAV4: $1,504
- Hybrid Toyota RAV4: $1,577
See the rates for the cheapest cars with gas-powered and hybrid versions and their annual premiums in the table below.
| Make Model | Gasoline | Hybrid |
|---|---|---|
| Jeep Wrangler | $1,503 | $1,442 |
| Honda CR-V | $1,398 | $1,449 |
| Ford Escape | $1,453 | $1,487 |
| Toyota RAV4 | $1,504 | $1,577 |
| Chrysler Pacifica | $1,555 | $1,648 |
| Toyota Highlander | $1,597 | $1,660 |
| Honda Accord | $1,652 | $1,665 |
| Hyundai Santa Fe | $1,579 | $1,667 |
| Kia Sorento | $1,629 | $1,689 |
| Toyota Camry | $1,710 | $1,712 |
| Hyundai Elantra | $1,750 | $1,756 |
| Dodge Ram 1500 | $1,762 | $1,764 |
| Hyundai Tucson | $1,511 | $1,770 |
| Ford Explorer | $1,691 | $1,771 |
| Hyundai Sonata | $1,847 | $1,859 |
| Toyota Avalon | $1,857 | $1,864 |
| Mitsubishi Outlander | $1,697 | $1,890 |
| Audi A5 2.0T Quattro | $2,226 | $2,248 |
| Audi A6 2.0T | $2,308 | $2,294 |
| Land Rover Range Rover Sport | $2,720 | $2,384 |
| Jeep Wagoneer Series | $2,885 | $2,896 |
| Porsche Panamera | $3,864 | $3,855 |
Are electric cars more expensive to maintain?Electric vehicles can spend longer in the repair shop due to supply chain issues and require more expensive replacement parts. Overall, however, they cost less than gasoline cars. Tires and the battery comprise an EV’s maintenance needs.
Read more about what are the hidden costs of owning an electric car
What are the cheapest companies for green vehicles?
The best insurance company for a green vehicle will vary dramatically depending on various factors. Insurers use proprietary algorithms to set rates, so premium quotes will differ depending on personal risk factors and the exact green vehicle you insure.
We ran the numbers on many green vehicles, and there were shocking differences in premium quotes for the same vehicle.
See the differences in premiums from various insurance companies for the cheapest EVs and hybrids to insure in the tables below.
Cheapest EVs to insure by company
| Make Model | Company | Avg. Annual Premium |
|---|---|---|
| Mini Cooper SE | Allstate | $2,081 |
| Mini Cooper SE | Geico | $1,261 |
| Mini Cooper SE | Farmers | $1,763 |
| Mini Cooper SE | Nationwide | $1,262 |
| Mini Cooper SE | Progressive | $1,438 |
| Mini Cooper SE | State Farm | $1,165 |
Cheapest hybrids to insure by company
| Make Model | Company | Avg. Annual Premium |
|---|---|---|
| Honda CR-V | Allstate | $2,154 |
| Honda CR-V | Geico | $1,149 |
| Honda CR-V | Farmers | $1,774 |
| Honda CR-V | Nationwide | $1,362 |
| Honda CR-V | Progressive | $1,336 |
| Honda CR-V | State Farm | $1,059 |
As the numbers clearly show, premiums can vary from insurer to insurer. Allstate charges 79% more than State Farm to insure the Mini Cooper SE.
The difference is even more significant with the hybrid. Allstate is still the most expensive insurer, charging 103% more than State Farm to cover a Honda CR-V.
The data clearly show that one of the best ways to lower your insurance premium is to shop your coverage around regularly. Be sure to compare apples to apples regarding coverage levels and deductibles.
Which discounts are available for hybrids and electric cars?
Currently, there are few discounts specific to hybrid or electric vehicles. However, a few insurers offer a green vehicle discount, which can also be called an alternative fuel vehicle discount or a fuel-efficient discount. This discount tends to be pretty small, 5% is common, but every little bit helps.
Insurers that offer discounts for EVs include the following companies:
- Allstate
- The Auto Club Group (AAA)
- Farmers
- Mercury
- Travelers
Check with your insurer whether they offer a discount for environmentally friendly vehicles.
Here are the most common discounts available, regardless of whether your car is electric or not:
- Multi-policy discount, also called bundling
- Good driver discount
- Paperless discount
- Paid in full discount
- Multi-vehicle discount
- Telematics
- Discounts for advanced safety features
How to save money with an electric car
One of the best ways to save money on an electric car is to shop around and compare insurance rates with multiple carriers. The actual vehicle you purchase will factor into your costs, however, so the more exotic and expensive your car, the more you will pay not only for insurance but also for repairs and maintenance. Think of everyday utilitarian vehicles rather than luxury models.
FAQ: The cheapest hybrids and EVs to insure
Can I still get a tax credit if I buy an EV?
Yes, many federal and state tax credits exist for drivers who purchase an EV. The credit will vary by state and the electric vehicle you buy. Tax credits can be significant, so be sure to chase down every credit you can receive – the federal credit is currently $7,500 for certain EVs.
However, there have been changes to the rules since the passage of the Inflation Reduction Act.
“In order to receive the full tax credit of $7,500, the law states that 40% of the critical minerals in EV batteries must be sourced from countries with which the United States has a free trade agreement, explains Nadia Bical, vice president at Bical Auto Mall in New York. “In addition, starting in 2023, 50% of components will have to be manufactured or assembled in North America.”
Check the Alternative Fuels Data Center for information about state and federal tax credits for EVs, hybrids and other alternative-fuel vehicles.
What are the benefits of buying an electric vehicle or a hybrid?
In addition to fighting climate change, green vehicles offer several other benefits, including tax incentives and lower fuel costs.
“Green vehicles come with tax incentives offered by federal and state governments as well as long-term savings on fuel and maintenance, ” says Derham. “Green vehicles have fewer moving parts and often break down less often which reduces or eliminates fuel costs. Both of these benefits can help offset higher insurance rates.”
What are the most expensive EVs and hybrids to insure?
The most expensive high-end electric sports cars are the Audi RS E-Tron GT, which costs $4,150 a year to insure. The Tesla Model S Plaid isn’t much cheaper, at $4,115.
The top five comprise the Porsche Taycan Turbo and two other Teslas.
The Audi RS6 Avant Quattro is the most expensive hybrid to insure, at an average of $3,922 per year, followed by the Porsche Panamera, at $3,855 per year, the Acura NSX Type S ($3,626), and two Audi Quattro models.
Final thoughts on insurance for EVs and hybrids
The number of green vehicles on the road increases as more drivers switch to electric cars or hybrids. While insuring a green vehicle can be a bit more expensive than a gas-powered vehicle due to higher sticker prices and repair costs, the difference is not always budget-busting.
While it will vary by vehicle and risk factors, insuring a green vehicle can cost slightly more than a gas-powered vehicle. The data show how important it is to shop your coverage around regularly, particularly if you drive a green car. Some insurers charge double the rates offered by their competitors.
Resources & Methodology
Sources
U.S. Environmental Protection Agency. “Learn About Green Vehicles.” Accessed April 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services to pull rates for a 40-year-old single male driver with full coverage (100/300/50 and a $500 deductible) and a good driving record. CarInsurance.com commissioned survey company Slice to survey drivers nationwide in 2023 about their driving habits, favorite driving songs, the best roads and DMVs, inflation and attitudes about car insurance. The survey was conducted March 24 – April 4, 2023. There were 2,300 respondents.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura Longero is an insurance expert and Executive Editor at CarInsurance.com, where she specializes in helping consumers navigate the complexities of the financial and insurance industries. She has 15 years of experience educating people about finance and car insurance. Prior to joining CarInsurance.com, she worked as a reporter and editor at the USA Today Network. Her expertise provides readers with practical guidance, helping them make informed choices about their financial and insurance needs.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Executive Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.