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From the fuel-cost savings to the environmental benefits, owning an electric vehicle (EV) has its perks. But there is one obvious question: Are electric cars more expensive to insure?
The short answer is yes because EVs typically cost more to repair or replace if they’re damaged in an accident. It’s an important factor to consider, especially since electric cars already cost roughly 11% more than gas-powered vehicles, according to the latest data from Kelley Blue Book.
Here’s what you need to know about electric car insurance, including some ways to help reduce your total costs.
Learn more: Car insurance rates are climbing. Here are 4 reasons why and 11 ways to save.
Why electric cars are more expensive to insure
You can expect EV insurance premiums to be higher than what you’d pay for a conventional, gas-powered vehicle. The average monthly cost to insure a gas-engine car is $248, according to research from Insurify. That number jumps to $357 for EVs.
The actual cost of your coverage will depend on your driving record, age, gender, location, coverage options, and vehicle type. In some states, insurers might also consider your credit-based insurance score when determining your rate.
Learn more: How does car insurance work? The basics explained.
EVs typically cost more to repair
If your electric vehicle is stolen or involved in an accident, it could be very costly to repair it or replace it. A high-voltage battery, which powers the electric motor, is a great example. Depending on your vehicle, battery-pack replacement can cost tens of thousands of dollars. And sourcing EV replacement parts isn’t always easy. Parts for certain EVs may be limited due to small manufacturing processes, which could make the repair more expensive.
It may be difficult to find a repair shop
Not all repair shops are equipped to work on EVs, so your vehicle may need to go to a special shop following an accident. This can be more costly for your insurance company and they may pass those potential costs onto you in the form of higher premiums.
Replacement costs can be high
While the average sticker price for EVs has been gradually declining, these vehicles are still more expensive on average than comparable gas-powered vehicles. Because of the higher cost of replacement, carriers may charge more for full coverage, including comprehensive and collision coverage.
Does car insurance cover EV battery replacement?
If your battery is damaged or destroyed in a covered event, like an auto accident, your insurer should cover some or all of the repair or replacement. The details will depend on your policy and coverage limits. But keep in mind that you’ll still need to meet your deductible before receiving an insurance payout. This is the amount you have to pay out of pocket before your insurer covers their share.
Learn more: What you need to know about car insurance deductibles
Are hybrid vehicles more expensive to insure?
If you own a hybrid vehicle, you’ll likely encounter some of the same issues with auto insurance rates as EV owners. A hybrid car has a gas engine, as well as a high-voltage battery that maintains the charge on the vehicle’s electric motor. As the name implies, it combines features of a gas-powered car and an electric vehicle.
It usually costs less to insure a hybrid car than an EV, but premiums are often higher than what you’d pay to insure a traditional gas-fueled vehicle. Again, repair and replacement costs can be expensive, and that’s often reflected in the policyholder’s premiums. Insurance for a hybrid can cost 7% to 11% more than regular car insurance, according to insurance provider Lemonade.
Do EVs require specialty car insurance?
You won’t need to buy a special auto insurance policy specifically for electric vehicles — your state’s minimum car insurance requirements are the same regardless of the type of vehicle you have. Every state is different, but most require some level of liability insurance. You might also need uninsured motorist coverage, medical payments coverage or personal injury protection.
Note: If you’re leasing or financing your vehicle, the lender will likely require you to add extra coverage that goes beyond your state’s minimum. That may include comprehensive and collision coverage, as well as gap insurance.
Learn more: Most common types of car insurance explained
Tips for insuring your electric vehicle
If you’re shopping around for an EV insurance policy, the following steps could help you keep more money in your pocket.
Research insurers that specialize in EV coverage
Look for carriers that have positive online reviews and a strong network of parts suppliers and body shops if you need a repair. Some insurers even offer EV-related discounts that can save you money. For example, Travelers Insurance offers a discount to drivers who own or lease a hybrid vehicle.
Clarify what’s covered
Read the terms and conditions carefully to understand what is and isn’t covered by your policy. You might choose to add supplemental coverage or increase your coverage limits to better protect yourself. Ask whether the policy covers things like battery replacement and damage to home charging stations. You can also inquire about loss-of-use coverage, which could come in handy if you need a temporary rental car.
Compare quotes from multiple carriers
It’s in your best interest to gather multiple quotes and compare premiums, deductible amounts, and coverage levels. Be sure to include your renters or homeowners insurance provider — bundling policies with one carrier is a tried-and-true way to get the cheapest rates.
Learn more: 6 steps to find cheap car insurance in 2025
Take advantage of special cash-saving opportunities for EV owners
Be sure to leverage federal tax credits, state-level EV incentives, and manufacturer discounts available to electric vehicle drivers. That might include extra perks for self-driving vehicles or EVs that have special security features. These savings could help offset the higher cost of insuring an EV.
Popular electric car insurance providers
The right electric car insurance provider for you will depend on your coverage needs, risk tolerance, and financial situation. Remember that insurers don’t offer specialized EV policies. Instead, you can expect the same coverage options that are available to gas-powered car owners, but at different prices. Having said that, you should consider comparing quotes from the multiple car insurer providers.
Below is a list of national providers you could consider when shopping for EV car insurance. According to Quadrant data, as featured on The Zebra, these national providers are all quoted as offering different yearly premiums. Of course, your premiums will ultimately depend on the type of car you drive, your driving record, and other personal factors.
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Allstate
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GEICO
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Farmers
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Liberty Mutual
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Nationwide
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Progressive
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State Farm
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USAA
Learn more: What is a car insurance premium, and how is it calculated?
EV car insurance from the manufacturer
You can also check with your EV manufacturer to see if they offer insurance. Tesla, for example, insures drivers in select states. If eligible, you can purchase coverage directly through the manufacturer. Tesla auto insurance offers many of the same coverage options mentioned above, and may include gap coverage in certain areas. Similarly, Rivian provides auto insurance coverage of its own.
Electric car insurance frequently asked questions
Why are electric cars more expensive to insure?
Repairing an electric vehicle generally costs more than a gas-powered car. Parts and repair shops may also be hard to come by. And in the event of a total loss, it’s usually more expensive to replace an electric car. This is why auto insurance premiums are typically higher for EVs.
Is special insurance required for electric vehicles?
No, insurers don’t offer specialty car insurance for EVs. You can expect the same coverage options that are available to gas-powered car owners, though you might be required to purchase additional coverage if you lease or finance your vehicle.
How can I bring down my EV car insurance costs?
Looking for discounts, comparing insurance carriers, and maintaining a safe driving record can all help keep your premiums in check. You can also take advantage of federal tax credits and state-sponsored incentives for purchasing an EV.
Tim Manni edited this article.
Marianne Hayes contributed to this article.
