How Much Does Electric Car Insurance Cost?

How Much Does Electric Car Insurance Cost?

The cheapest popular EV to insure is the Hyundai Kona, which costs an average of $2,152 per year for a full-coverage policy. The cost of car insurance for an electric car is 25% more than its equivalent gas model. Electric car insurance is typically more expensive because EVs are more expensive to repair or replace.

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Electric car insurance cost

The average annual cost of insurance ranged from $2,152 to $4,725 for the most popular electric cars. The cheapest electric car to insure is the Hyundai Kona crossover SUV, and the most expensive is the Porsche Taycan, an electric sports car.

Cost of Electric Car Insurance

EV model

Annual cost

Hyundai Kona

$2,152

Nissan Leaf

$2,299

Chevy Bolt

$2,401

Tesla Model Y

$3,215

Tesla Model 3

$3,278

Porsche Taycan

$4,725

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Cheapest car insurance companies for electric cars

State Farm is the cheapest insurance company for electric cars. The average cost of a State Farm insurance policy across the most popular EV cars is $1,434 per year.

Cheapest insurance companies for electric cars

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Insurer
Cost per year
State Farm logo
State Farm$1,434
Tesla logo
Tesla Insurance$1,899
Geico logo
Geico$2,858
USAA logo
USAA$2,868
Progressive logo
Progressive$4,444
Allstate logo
Allstate$4,567

A great way to find cheap car insurance for your electric vehicle is to get quotes from multiple car insurance companies.

Gas vs. electric car insurance costs

Car insurance for an EV is about 25% more expensive than the cost for the same car with a gas engine.

How electric cars affect insurance rates

For cars that come in both an electric and gas version of the same model, the electric Chevy Spark had the closest car insurance rates to its ICE counterpart, likely due to having a lower MSRP than most EVs. On average, if the insurance rate for a gas Chevy Spark is $1,000 per year, the premium for the electric version would be $1,190.

Car model

Rate increase for EV version

Chevy Spark

19%

Kia Soul

23%

Fiat 500

32%

Why do electric cars cost more to insure?

Car insurance costs are typically higher for electric cars because EVs tend to cost more to buy. Electric vehicles cost more to repair or replace after a car accident. One of the main reasons for more expensive rates is that electric vehicles contain expensive, high-capacity batteries.

Cost of gas vs. electric cars

Car
Gas MSRP
Electric MSRP
MSRP cost increase
Fiat 500$25,500$32,70028%
Kia Soul$18,200$34,52090%
Chevy Spark$13,100$25,90098%

MSRP values from Kelley Blue Book.

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How to save money with an electric car

While EVs typically cost more to insure, there are financial benefits to owning an electric car. For example, the cost to charge an electric car typically costs much less than filling up a car with gas.

You could save on fuel costs with an EV, averaging between $3,000 and $10,500 throughout the car's lifetime.

Along with cheaper fuel costs, your electric vehicle might qualify you for a tax credit of up to $7,500, depending on your state, income, car make and model and the cost of your EV.

Methodology

Our analysis used insurance rate data from Quadrant Information Services. The insurance rates were publicly sourced from insurer filings and should only be used for comparative purposes. Your actual rates may be different based on your location, age, driving record and other factors.

The insurance rates for the six popular EV models were sourced from thousands of quotes across Texas. To determine how the cost of insurance differs between electric cars and gas cars, we collected insurance quotes in New York state for three cars available in both electric and gas models.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.