How Much Does Electric Car Insurance Cost: The Hyundai Kona is the least expensive popular EV to insure, with a full-coverage policy costing an average of $2,152 per year. Car insurance for an electric vehicle is 25% higher than for a comparable gas model. Because EVs are more expensive to fix or replace, electric car insurance is often more expensive.
Electric car insurance cost
For the most popular electric vehicles, the average yearly insurance cost ranged from $2,152 to $4,725 USD. The Hyundai Kona crossover SUV is the least expensive to insure, while the Porsche Taycan, an electric sports car, is the most expensive.
Electric car insurance cost by make and model
| 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 |
Cheapest car insurance companies for electric cars
State Farm is the most affordable electric car insurance provider. A State Farm insurance policy for the most popular EV cars costs $1,434 per year on average.
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Cheapest car insurance companies for electric vehicles
| Cost per year | ||
|---|---|---|
| State Farm | $1,434 | |
| Tesla Insurance | $1,899 | |
| Geico | $2,858 | |
| USAA | $2,868 | |
| Progressive | $4,444 | |
| Allstate | $4,567 |
Gas vs. electric car insurance costs
The electric Chevy Spark has the closest vehicle insurance costs to its ICE counterpart for cars that come in both electric and gas versions of the same model, perhaps due to having a cheaper MSRP than most EVs. If the insurance price for a gas Chevy Spark is $1,000 per year, the premium for the electric equivalent is $1,190.
Gas vs electric car insurance costs
| Car model | Rate increase for EV version |
|---|---|
| Chevy Spark | 19% |
| Kia Soul | 23% |
| Fiat 500 | 32% |
Why do electric cars cost more to insure?
Electric vehicles have greater insurance premiums because they are more expensive to purchase. After an automobile accident, electric vehicles are more expensive to repair or replace. One of the primary reasons for higher rates is that electric vehicles need expensive, high-capacity batteries.
Cost of gas vs. electric cars
| Car | Gas MSRP | Electric MSRP | MSRP cost increase |
|---|---|---|---|
| Fiat 500 | $25,500 | $32,700 | 28% |
| Kia Soul | $18,200 | $34,520 | 90% |
| Chevy Spark | $13,100 | $25,900 | 98% |
How to save money with an electric car
While electric vehicles are often more expensive to insure, there are financial advantages to owning one. For example, charging an electric car is often far less expensive than filling up a gas tank.
In addition to lower gasoline costs, your electric vehicle may qualify for a tax credit of up to $7,500, depending on your state, income, car make and model, and EV cost.
People Also Ask
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How Much Does Electric Car Insurance Cost for 2023?
The Hyundai Kona is the least expensive popular EV to insure, with a full-coverage policy costing an average of $2,152 per year. Car insurance for an electric vehicle is 25% higher than for a comparable gas model. Because EVs are more expensive to fix or replace, electric car insurance is often more expensive.
-
How to save money with an electric car
While electric vehicles are often more expensive to insure, there are financial advantages to owning one. For example, charging an electric car is often far less expensive than filling up a gas tank.
In addition to lower gasoline costs, your electric vehicle may qualify for a tax credit of up to $7,500, depending on your state, income, car make and model, and EV cost. -
Why do electric cars cost more to insure?
Electric vehicles have greater insurance premiums because they are more expensive to purchase. After an automobile accident, electric vehicles are more expensive to repair or replace. One of the primary reasons for higher rates is that electric vehicles need expensive, high-capacity batteries.
