Car Insurance Cost for Electric Vehicles

The actual gap: about 42% on average

Insurify's analysis of more than 235 million insurance quotes puts full-coverage electric vehicle insurance at about $3,159 a year, compared to $2,218 a year for gas-powered cars, roughly 42%, or $941 a year, more expensive on average.

This is one of the more thoroughly documented vehicle-type cost differences in the current data, not a fringe claim, the same figures are reported consistently across independent syndications of the underlying study.

The gap is shrinking, but only for newer models

Comparing only 2024-model-year-or-newer vehicles specifically, the same Insurify analysis found the gap narrows meaningfully, to about 18%, or $501 a year. Two trends are converging here: EV-specific repair infrastructure, trained technicians, and parts availability are all improving, while more gas-powered vehicles are simultaneously adopting the same advanced driver-assistance technology that currently makes EV repairs more expensive and specialized.

That convergence is closing the gap from both directions at once, though it has not closed it entirely.

Why EVs cost more to insure in the first place

MoneyGeek's own breakdown identifies several compounding reasons, none of which is a single dominant factor on its own. EVs generally carry higher purchase prices, which raises their replacement cost if totaled.

Many EV components are proprietary to the manufacturer, with few or no aftermarket alternatives, unlike a lot of gas-vehicle parts. Repairing an EV requires specialized technician training for battery packs and high-voltage systems that a typical gas-vehicle mechanic is not equipped for.

Advanced driver-assistance sensors and cameras, common on many EVs, often need recalibration or outright replacement even after a relatively minor collision. And EV repairs, across the board, simply take longer to complete than a comparable gas-vehicle repair, which raises the total cost of a claim.

To see how vehicle type factors into your own estimate, alongside your state and coverage level, the car insurance cost calculator runs the full comparison.

What to do if you are shopping for an EV

Get an insurance quote before finalizing an EV purchase, not after, since the gap varies meaningfully by specific model and can meaningfully change the true cost of ownership comparison against a comparable gas vehicle.

Ask specifically whether your chosen insurer has EV-specific pricing or discount programs, coverage and pricing sophistication for EVs varies more by carrier right now than it does for most gas vehicles, since insurers are still actively refining how they price this newer vehicle category.