Younger generations of consumers – Millennials and members of Gen Z – are more willing to prioritize alternative energy development and phase out fossil fuels than Gen Xers and Baby Boomers, according to the Pew Research Center.
In fact, according to Pew, 56% of Gen Z and 57% of Millennials favor phasing out gas-powered vehicles by 2035, compared with 45% of Gen X and 38% of Boomers. With fewer gasoline vehicles on the road, there likely will be a shift to electric vehicles (EVs) and hybrids.
“Most insurance companies insure electric vehicles,” says Janet Ruiz, director of strategic communication for the Insurance Information Institute. “The rates are based on driving record, miles driven, driving experience, cost to repair the vehicle, and, in many states, credit score.”
- The national average for full coverage for an EV is $3,174 – $511 more than the annual rate for a gas-powered vehicle.
- Major carriers like State Farm, Nationwide, Geico, Progressive, Farmers and Allstate offer EV auto insurance.
- The cost to insure Tesla vehicles is higher than for other EVs or hybrids.
How much does electric car insurance cost?
The national average for full coverage for an EV is $3,174 – $511 more than the annual rate for a gas-powered vehicle. The most expensive EV to insure is a Mercedes-AMG EQS with an annual full coverage premium of $5,648, and the cheapest is a Mini Cooper Electric with an annual rate of $2,099. See more rates in the table below.
| Make model | Annual rates | 6-month rates | Monthly rates |
|---|---|---|---|
| Audi e-tron GT | $5,528 | $2,764 | $461 |
| Audi Q4 e-tron | $2,711 | $1,355 | $226 |
| Audi Q8 e-tron | $3,295 | $1,647 | $275 |
| Audi SQ8 e-tron | $4,010 | $2,005 | $334 |
| BMW i4 | $3,726 | $1,863 | $310 |
| BMW i5 | $3,877 | $1,939 | $323 |
| BMW i7 | $5,480 | $2,740 | $457 |
| BMW iX | $3,916 | $1,958 | $326 |
| BMW X5 | $3,369 | $1,685 | $281 |
| Cadillac LYRIQ | $2,985 | $1,492 | $249 |
| Chevrolet Blazer EV | $2,890 | $1,445 | $241 |
| Chevrolet Corvette E-Ray | $4,584 | $2,292 | $382 |
| Chevrolet Silverado EV | $2,452 | $1,226 | $204 |
| Dodge Hornet Hybrid | $2,741 | $1,371 | $228 |
| Ford Escape Hybrid | $2,163 | $1,082 | $180 |
| Ford F-150 Lightning | $2,743 | $1,372 | $229 |
| Ford Mustang Mach-E | $2,851 | $1,426 | $238 |
| Genesis Electrified G80 | $3,646 | $1,823 | $304 |
| Genesis Electrified GV70 | $3,006 | $1,503 | $251 |
| Genesis GV60 | $3,172 | $1,586 | $264 |
| GMC Hummer EV SUV | $4,513 | $2,256 | $376 |
| GMC Hummer EV Truck | $4,111 | $2,056 | $343 |
| Honda CR-V Hybrid | $2,164 | $1,082 | $180 |
| Hyundai Ioniq 5 | $2,721 | $1,360 | $227 |
| Hyundai Ioniq 6 | $2,929 | $1,465 | $244 |
| Hyundai Kona Electric | $2,276 | $1,138 | $190 |
| Hyundai Santa Fe Hybrid | $2,460 | $1,230 | $205 |
| Hyundai Tucson Hybrid | $2,347 | $1,174 | $196 |
| Jaguar I-Pace | $3,054 | $1,527 | $254 |
| Jeep Grand Cherokee 4xe Hybrid | $2,879 | $1,439 | $240 |
| Jeep Wrangler 4xe Hybrid | $2,608 | $1,304 | $217 |
| Kia EV6 | $2,850 | $1,425 | $238 |
| Kia EV9 | $3,064 | $1,532 | $255 |
| Kia Niro EV | $2,239 | $1,120 | $187 |
| Kia Niro Hybrid | $2,128 | $1,064 | $177 |
| Kia Sorento Hybrid | $2,407 | $1,204 | $201 |
| Kia Sportage Hybrid | $2,218 | $1,109 | $185 |
| Lexus ES Hybrid | $2,951 | $1,476 | $246 |
| Lexus NX Hybrid | $2,668 | $1,334 | $222 |
| Lexus RX Hybrid | $2,725 | $1,363 | $227 |
| Lexus UX | $2,490 | $1,245 | $208 |
| Mazda CX-90 Hybrid | $2,784 | $1,392 | $232 |
| Mercedes-AMG EQS | $5,648 | $2,824 | $471 |
| Mercedes-Benz EQB | $2,879 | $1,440 | $240 |
| Mercedes-Benz EQE | $3,862 | $1,931 | $322 |
| Mercedes-Benz EQE SUV | $3,639 | $1,819 | $303 |
| Mercedes-Benz EQS | $4,786 | $2,393 | $399 |
| Mercedes-Benz EQS SUV | $4,663 | $2,331 | $389 |
| Mini Cooper Electric | $2,099 | $1,050 | $175 |
| Mitsubishi Outlander Hybrid | $2,671 | $1,336 | $223 |
| Nissan Ariya | $3,059 | $1,529 | $255 |
| Nissan Leaf | $2,396 | $1,198 | $200 |
| Polestar 2 | $3,367 | $1,683 | $281 |
| Porsche Cayenne Turbo E-Hybrid | $4,074 | $2,037 | $339 |
| Porsche Taycan | $5,073 | $2,537 | $423 |
| Porsche Taycan Cross Turismo | $4,981 | $2,490 | $415 |
| Subaru Solterra | $2,647 | $1,324 | $221 |
| Tesla Model 3 | $3,466 | $1,733 | $289 |
| Tesla Model S | $5,074 | $2,537 | $423 |
| Tesla Model X | $4,805 | $2,403 | $400 |
| Tesla Model Y | $3,529 | $1,765 | $294 |
| Toyota bZ4X | $2,699 | $1,350 | $225 |
| Toyota Corolla Cross Hybrid | $2,218 | $1,109 | $185 |
| Toyota Crown | $2,871 | $1,435 | $239 |
| Toyota Grand Highlander Hybrid | $2,515 | $1,258 | $210 |
| Toyota Highlander Hybrid | $2,328 | $1,164 | $194 |
| Toyota Mirai | $3,064 | $1,532 | $255 |
| Toyota Prius | $2,415 | $1,207 | $201 |
| Toyota Prius Prime | $2,666 | $1,333 | $222 |
| Toyota RAV4 Hybrid | $2,189 | $1,094 | $182 |
| Toyota Tundra Hybrid | $2,755 | $1,377 | $230 |
| Toyota Venza | $2,240 | $1,120 | $187 |
| Volkswagen ID.4 | $2,318 | $1,159 | $193 |
| Volvo C40 Recharge | $3,139 | $1,569 | $262 |
| Volvo XC40 Recharge | $2,853 | $1,426 | $238 |
Why do electric vehicles cost more to insure?
According to Consumer Reports, EVs cost more to insure than gas-powered cars because insurance companies don’t have the historical data to review for EVs as they do for gasoline vehicles.
David Griffin Jr., senior vice president for The Dowd Agencies in Holyoke, Massachusetts, says you will typically pay more to insure an electric or hybrid vehicle than a conventional car.
“This is primarily because these cars are more expensive and also have higher repair costs,” Griffin says. “Because certain components are so expensive to replace – like the battery packs – even a simple accident can cost a lot of money.”
And hybrid and electric car insurance costs can be higher because of the increased risk of theft and vandalism. But, there’s good news.
“As more repair shops and a larger volume of parts become available and more affordable, insurance is gradually becoming less expensive for hybrids and EVs,” says Janet Ruiz, director of strategic communications for the Insurance Information Institute.
What are the insurance requirements and coverage options for electric cars?
Auto insurance for EVs and hybrids functions similarly to coverage for gasoline or diesel-powered cars. Every state except New Hampshire mandates minimum limits for liability coverage when you drive an EV, as with any type of car; also, comprehensive coverage may be required if you are leasing or financing or leasing an EV but remains optional if you fully own your vehicle.
When selecting insurance, you’ll have access to the same coverage options as with a gas-powered car. These include liability, comprehensive and collision coverage, along with medical payments (MedPay), personal injury protection (PIP), and uninsured/underinsured motorist coverage. These standard policies provide essential protection regardless of whether your vehicle runs on electricity or gasoline.
Given that electric and hybrid cars tend to have a higher value and can be more costly to repair or replace compared to gas-only vehicles, it’s worth considering additional coverages. Options such as new car replacement, rental car reimbursement and gap insurance are recommended.
Which insurance companies provide affordable electric car insurance?
Major auto insurance carriers like State Farm, Nationwide, Geico, Progressive, Farmers and Allstate offer insurance for electric vehicles. The insurance companies with the best average annual rates are shown in the table below.
Select your car's make and model below to view the insurance company and its average annual rates for electric vehicles.
Which companies offer electric car insurance discounts?
Some insurers charge less and provide discounts for insuring a hybrid or electric vehicle. For best results, it pays to shop around and get price quotes from several carriers when you need to insure an EV.
“Geico, for example, offers discounts of up to 25% for drivers who choose a hybrid or EV as their vehicle. This company and other carriers also offer various other discounts, such as for good drivers, safe vehicles and students, regardless of whether you drive an electric, hybrid or gasoline-fueled car,” says Andre Disselkamp, co-founder of Insurancy, an insurance broker.
Michael Kim, the co-founder of Ev Charger Reviews, says USAA and State Farm charge the least for insuring hybrid and electric vehicles.
What are the insurance costs for popular electric car models?
Curious about how much a policy will cost for a popular EV? The average rates vary from $2,721 for a Hyundai Ioniq 5 to $3,529 for a Tesla Model Y. You’ll find rates for the most popular electric car models in the table below.
| Popular Make Model | Annual rates | 6-month rates | Monthly rates |
|---|---|---|---|
| Tesla Model Y | $3,529 | $1,765 | $294 |
| Tesla Model 3 | $3,466 | $1,733 | $289 |
| Ford Mustang Mach-E | $2,851 | $1,426 | $238 |
| Hyundai Ioniq 5 | $2,721 | $1,360 | $227 |
| Ford F-150 Lightning | $2,743 | $1,372 | $229 |
| Cadillac LYRIQ | $2,985 | $1,492 | $249 |
Is auto insurance for Teslas different from other electric cars?
The cost to insure Tesla vehicles is higher than for other EVs or hybrids. This is primarily because Teslas are built with more expensive and sophisticated equipment and charge higher purchase prices, which result in higher insurance premiums.
In fact, both the cost of the parts and the labor to fix an EV or hybrid is higher, says Fred Balkin, a personal injury attorney with Stein Sperling in Rockville, Maryland.
“Tesla, for example, can only be repaired in designated body shops certified by Tesla. And many electric vehicle owners are surprised when they are told by their collision repair shop that their auto collision insurer will only cover the repairs up to a certain point and that any further charges must be paid out of pocket by the owner,” Balkin says. “In many cases, the owner may have to contribute up to 40% of the total repair bill for an electric vehicle.”
What factors influence the cost of insuring an electric car?
You’ll probably pay more to insure an electric vehicle than you would for a gasoline-powered car because of the higher repair costs and specialized mechanics needed to repair the vehicles.
What you pay for car insurance depends on a few key things – like your driving record, the car you drive, who’s behind the wheel, how often it’s used, and the coverage you choose. All of these factors help insurers determine your rate.
How your driving profile affects EV insurance rates
Like car insurance for any other car, your driving profile affects how risky your insurance company views you, and, therefore, how it sets your rates. Your driving profile comprises your driivng history, mileage, driving experience, vehicle use, claim history and credit-based insurance score (this is allowed in most states but not all states).
How do location and ZIP code affect EV insurance rates?
Similar to insurance for gas-powered or hybrid vehicles, location and ZIP code affect insurance rates for EVs because your insurer assesses the level of risk associated with your location—and that risk directly impacts your premium. It looks at the accident and crime rates, population density, repair costs, uninsured driver rate and severe weather risk in your area.
List of companies that offer discounts on electric cars
Some auto insurers offer green discounts for hybrids/electric vehicles. A few insurance companies that offer green discounts include:
- Auto-Owners
- Farmers
- Geico
- Travelers
How to find affordable electric car insurance
You can find cheaper coverage for your EV if you shop around and compare rates from different carriers. Doing an apples-to-apples comparison of premiums, coverages and covered amounts, and deductibles can help you find the best deal.
How do you save on electric car insurance?
Some insurers offer specific discounts for owning an electric or hybrid vehicle. But you may also shave dollars off your premium by qualifying for other discounts and pursuing particular strategies, including:
- If you purchase two or more types of insurance from the same carrier, like 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).
Dennis Shirshikov, a professor of economics at City University of New York/Queens College, highlights additional money-saving strategies.
“Some insurers also offer usage-based insurance programs that reward low-mileage drivers, which can be particularly beneficial for EV owners who primarily use their vehicle for short commutes,” he says. “Another strategy is to increase your deductible, which can lower the premium, although this comes with the risk of higher out-of-pocket costs in the event of a claim.”
Read more: What do you need to know about insuring an electric car?
Can electric vehicles help you save in other ways?
Yes. EVs have lower maintenance costs as they don’t need the services that gas-powered vehicles do, such as tune-ups and oil changes. Teslas, for example, could require a new battery, tires and tire rotation, air filters and A/C service and brakes, but that’s the extent.
Learn more about the hidden costs of owning an electric car
FAQs
Is insurance for hybrids or electric cars more expensive than gas-powered cars?
Research shows that it can be costlier today to insure an electric or hybrid vehicle than a gasoline-powered automobile, depending on the make, model and year. Additionally, hybrids and EVs can have more expensive parts, and not all auto shops have experience with these kinds of vehicles.
Which electric vehicles are the cheapest and most expensive to insure?
The most expensive EVs to insure are the Porsche Taycan Turbo ($5,001 annual premium), BMW I7 ($4,929), Porsche Panamera Turbo S E-Hybrid ($4,912), Porsche Taycan GTS ($4,826) and Porsche Panamera 4S E-Hybrid ($4,752).
The cheapest EVs to insure are the Ford Escape Plug-in Hybrid ($1,819 yearly premium), Hyundai Kona Electric ($1,835), Honda CR-V ($1,866), Toyota Venza ($1,879) and Kia Sportage Hybrid ($1,910).
Are electric cars cheaper to insure?
No. EVs typically are more expensive to insure because they cost more to purchase and pose a greater financial risk to the insurer. More risk means higher insurance rates.
Do the costs of battery replacement affect insurance rates?
Yes, battery replacement costs can affect how much you pay for electric car insurance. Insurers factor that into your premium because EV batteries are expensive to repair or replace. If your electric vehicle is involved in an accident and the battery is damaged, the repair bill can be significantly higher than that of a gas-powered car.
That added cost risk is reflected in your electric car insurance cost, especially for models with large or high-performance batteries.
The good news? Many EVs come with strong safety ratings and advanced tech, which can help lower rates and offset the cost of insuring the battery.
Do EVs qualify for usage-based insurance programs?
Yes, many electric vehicles qualify for usage-based insurance programs, which can be a smart way to save on electric car insurance costs.
Usage-based insurance programs use a mobile app or plug-in device to track how, when, and how much you drive. If you’re a safe driver or don’t rack up a lot of miles, you could see a lower premium – especially helpful if you use your EV for short commutes or weekend trips.
Resources & Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to pull 2024 rates for 40-year-old males with full coverage, $500 deductibles and 100/300/100 liability limits. The hypothetical driver has a 12-mile commute, good insurance score and 10,000 annual mileage. Data comprises 67,566,780 quotes from 51 states, 472 cities, 510 ZIP codes, 57 insurers and 1,661 make/models.
CarInsurance.com commissioned research firm Dynata to conduct an online survey of 1,460 drivers about their speeding habits in March 2025. In 2024, CarInsurance.com commissioned Quadrant Information Services to obtain rates from up to six major insurers in 34,558 ZIP codes for a 40-year-old driver of a 2021 Honda Accord LX with good credit, full coverage, and a $500 deductible; the increases shown are an average from the base rate in 2024. The editors found the percentage and amount of increase for 11 to 29 mph over the speed limit.
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