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.
- Average annual auto insurance premiums for electric cars and hybrid vehicles range from $1,819 per year for a Ford Escape Plug-in Hybrid to over $5,000 for a Porsche Taycan Turbo.
- 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?
Average annual auto insurance premiums for electric cars and hybrid vehicles range from $1,819 per year for a Ford Escape Plug-in Hybrid to over $5,000 for a Porsche Taycan Turbo. CarInsurance.com commissioned Quadrant Information Services to find the average annual rates for EVs and hybrids.
| Make | Model | Annual rates |
|---|---|---|
| Audi | E-Tron | $2,816 |
| Audi | E-Tron GT | $4,598 |
| Audi | E-Tron S | $3,139 |
| Audi | E-Tron S Sportback | $3,010 |
| Audi | E-Tron Sportback | $2,746 |
| Audi | Q4 E-Tron | $2,606 |
| Audi | Q4 Sportback e-tron | $2,484 |
| Audi | Q5 E Plug-In Hybrid | $2,552 |
| Audi | RS E-tron GT | $4,735 |
| BMW | I4 | $3,030 |
| BMW | I7 | $4,929 |
| BMW | iX | $3,590 |
| Cadillac | LYRIQ | $2,717 |
| Chevrolet | Bolt EUV | $2,048 |
| Chevrolet | Bolt EV | $1,988 |
| Chrysler | Pacifica Hybrid | $2,033 |
| Ford | Escape Plug-in Hybrid | $1,819 |
| Ford | F-150 Lightning | $2,576 |
| Ford | Mustang Mach-E | $2,420 |
| Genesis | G80 Electrified | $3,495 |
| Genesis | GV60 | $2,865 |
| GMC | Hummer EV | $4,325 |
| Honda | Accord Hybrid | $2,044 |
| Honda | CR-V | $1,866 |
| Hyundai | Elantra Hybrid | $2,144 |
| Hyundai | Ioniq 5 | $2,422 |
| Hyundai | Kona Electric | $1,835 |
| Hyundai | Nexo | $2,267 |
| Hyundai | Santa Fe Hybrid | $2,013 |
| Hyundai | Tucson Hybrid | $1,926 |
| Hyundai | Tucson Plug-In Hybrid | $1,964 |
| Jaguar | I-Pace | $2,776 |
| Jeep | Grand Cherokee 4Xe | $2,472 |
| Jeep | Wrangler 4Xe | $2,066 |
| Kia | EV6 | $2,431 |
| Kia | Niro EV | $1,924 |
| Kia | Sorento Hybrid | $1,988 |
| Kia | Sorento Plug-In Hybrid | $2,114 |
| Kia | Sportage Hybrid | $1,910 |
| Kia | Sportage Plug-In Hybrid | $2,058 |
| Land Rover | Range Rover P440 Plug-in Hybrid | $4,075 |
| Lexus | ES Hybrid | $2,552 |
| Lexus | LC Hybrid | $3,759 |
| Lexus | LS Hybrid | $3,670 |
| Lexus | NX Hybrid | $2,234 |
| Mercedes | EQE | $3,866 |
| Mercedes | EQS | $4,710 |
| Nissan | Leaf | $2,163 |
| Polestar | 2 | $3,028 |
| Porsche | Cayenne Coupe E-Hybrid | $2,982 |
| Porsche | Cayenne E-Hybrid | $3,025 |
| Porsche | Cayenne Turbo S E-Hybrid | $3,698 |
| Porsche | Panamera 4 E-Hybrid | $4,180 |
| Porsche | Panamera 4S E-Hybrid | $4,752 |
| Porsche | Panamera Turbo S E-Hybrid | $4,912 |
| Porsche | Taycan | $4,409 |
| Porsche | Taycan GTS | $4,826 |
| Porsche | Taycan Turbo | $5,001 |
| Subaru | Solterra | $2,339 |
| Tesla | Model 3 | $2,914 |
| Tesla | Model 3 Performance | $3,881 |
| Tesla | Model S | $4,005 |
| Tesla | Model S Plaid | $4,563 |
| Tesla | Model X | $3,834 |
| Tesla | Model Y | $3,103 |
| Tesla | Model Y Performance | $3,150 |
| Toyota | bZ4X | $2,452 |
| Toyota | Camry Hybrid | $2,120 |
| Toyota | Corolla Hybrid | $2,110 |
| Toyota | Highlander Hybrid | $2,050 |
| Toyota | Prius | $2,113 |
| Toyota | RAV4 Hybrid | $1,916 |
| Toyota | RAV4 Prime | $1,992 |
| Toyota | Tundra Capstone | $2,942 |
| Toyota | Tundra Hybrid | $2,369 |
| Toyota | Venza | $1,879 |
| Volkswagen | ID.4 | $2,114 |
| Volvo | C40 | $2,614 |
| Volvo | S60 Recharge | $3,307 |
| Volvo | S60 T8 Polestar Engineered | $3,122 |
| Volvo | S90 Recharge | $3,640 |
| Volvo | V60 T8 Polestar Engineered | $3,686 |
| Volvo | XC40 Recharge | $2,313 |
| Volvo | XC90 Recharge | $2,693 |
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.
Who provides electric car insurance?
Large nationwide auto insurance carriers like Allstate, AmTrust, Geico, Farmers, Nationwide, Progressive, State Farm and USAA provide EV car insurance. USAA is only available to military personnel and their families, but as a full-service financial company, it’s a good option for those who qualify.
Which insurers offer the most affordable rates on electric cars?
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.
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
What are the insurance costs for popular electric car models?
Curious how much a policy will cost for an in-demand EV? The average rates can vary from $1,924 for a Kia Niro EV to $4,409 for a Porsche Taycan. See more rates for EVs in the table below.
| Popular car models | Annual rates |
|---|---|
| Tesla Model 3 | $2,914 |
| Chevrolet Bolt EV | $1,988 |
| Hyundai Ioniq 5 | $2,422 |
| Ford Mustang Mach-E | $2,420 |
| Genesis G80 Electrified | $3,495 |
| BMW iX | $3,590 |
| Ford F-150 Lightning | $2,576 |
| Kia Niro EV | $1,924 |
| Polestar 2 | $3,028 |
| Porsche Taycan | $4,409 |
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.”
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.
“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.”
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 need a new battery, tires and tire rotation, air filters and A/C service, and brakes, but that’s the extent.
In 2023, CarInsurance.com conducted a nationwide drivers survey, asking them about their thoughts on electric vehicles. The study found that 44% of drivers said electric vehicles are more expensive to maintain than gas-powered vehicles. Only 16% of drivers said EVs are cheaper to maintain, and 40% said the costs are comparable.
Tax credits of $7,500 are available for new EVs if the vehicle has a battery capacity of at least 7 kilowatt hours, has a gross vehicle weight rating of less than 14,000 pounds, is made by a qualified manufacturer, undergoes final assembly in North America and meets critical mineral and battery component requirements.
Learn more about the hidden costs of owning an electric car
FAQs: Electric car insurance
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.
Does the cost of battery replacement affect insurance rates?
Insuring EVs is often more expensive than insuring gas-powered cars due to several factors, including the fact that their batteries are costly to repair or replace. Additionally, fewer repair shops specialize in EVs, which can increase insurance rates.
The high cost of repairs, the complexity of handling battery issues, and the safety risks involved with battery maintenance all contribute to the higher insurance premiums. Replacing a battery, which can be up to 50% of the vehicle’s price, is sometimes more economical than repairing it.
Consider the expensive minerals needed for EV batteries, such as lithium, nickel and cobalt, which are in limited supply and high demand. Since the battery is the most costly component of an EV, this significantly impacts the vehicle’s overall price. However, as the EV market evolves, prices are expected to decrease.
Methodology & Resources
Sources
- Consumer Reports. “Electric Vehicles May Cost More to Insure Than Gasoline-Powered Cars.” Accessed September 2024.
- Pew Research Center. “Gen Z, Millennials Stand Out for Climate Change Activism, Social Media Engagement With Issue.” Accessed September 2024.
- Pew Research Center. “Gen Z, Millennials Stand Out for Climate Change Activism, Social Media Engagement With Issue.” Accessed September 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services in 2023 to field rates for a 40-year-old male driver with good credit, full coverage (100/300/100) and $500 deductibles for 1,439 vehicle models in 501 cities. 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.
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Laura Longero
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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.
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