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Key Takeaways

  • Electric cars are more expensive to insure than conventional cars.
  • The insurance rates for EVs range anywhere between $2160 and $4731.
  • Among the models surveyed, the Porsche Taycan is the most expensive to insure, while Kia Soul and Ford EVs are cheaper to insure.

Is insurance more expensive for electric vehicles?

The steep rise in fuel prices, the environmental laws that become stricter as time goes by, and the attempts to clean up the mess of the years gone by all point to the rise in the sales of fully electric, partially electric, and hybrid vehicles.

Electric vehicles are more expensive than their fuel counterparts. The repair and replacement costs of the parts are higher, which indicates higher insurance rates. The state minimum liability won’t be enough to cover the out-of-pocket expenses that one might encounter during an accident. This calls for both collision and comprehensive coverage for the car, which might seem expensive but evens out when we consider the savings on fuel and long-term maintenance.

Electric Car Insurance vs. Conventional Car Insurance

The national average for conventional car insurance is $1557. The increased insurance rates of electric cars are mainly due to the cost of the parts. For instance, the battery replacement of an EV will cost anywhere between $15,000 and $20,000. Apart from the cost of the parts, like conventional car insurance, providers take into consideration driving history, your location, age, and similar non-driving factors while calculating the insurance rates for EVs as well.

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How much does electric car insurance cost?

The cost of electric car insurance is at least twenty-five percent higher than a gas model of the same range. Analyzing the electric car insurance quotes of different models available in the market, we observe that the insurance rates range anywhere between $2160 and $4731.

While Tesla models and electric sports cars like Porsche Taycan are among the most expensive electric cars to insure, EVs like Hyundai Ioniq, Ford Fusion, and Fiat 500 c are cheaper to insure.

EV Model Average 6-Month Premium Average Annual Premium
Tesla Model S $1907 $3808
Tesla Model Y $1611 $3221
Tesla Model 3 $1148 $2289
Tesla Model X $1668 $3330
Porsche Taycan $2366 $4731
Ford Focus $823 $1639
Jaguar I Pace $927 $1847
Toyota Prius $876 $1746
Nissan Leaf $897 $2305
Chevy Bolt $1204 $2407
Hyundai Ioniq $894 $1788
Hyundai Kona $1079 $2158

Cheapest Insurance Company for Electric Vehicles

Insuring an electric car is similar to that of a conventional car. Many national and regional insurance providers offer insurance for electric vehicles. Collision and comprehensive coverage along with add-on coverages are available for these as well.

The common providers offering the cheapest insurance rates for electric vehicles are mentioned below. USAA offers the cheapest insurance rates after Tesla Insurance, but it is open to active military members and military veterans.

Insurance Provider Average Annual Rate
Allstate $4573
Progressive $4450
USAA $2875
Tesla Insurance $1905
State Farm $1440

Tesla Insurance

Tesla insurance, as the name suggests, is the insurance provided by Tesla. Though it provides cheap insurance rates, its services are currently limited to Arizona, California, Illinois, Ohio, Oregon, Nevada, Colorado, Virginia, and Texas for Tesla owners.

Along with the basic coverages, the exclusive autonomous vehicle protection package provided by Tesla insurance autonomous vehicle owner liability, cyber identity fraud expenses, electronic key replacement, and wall charger coverages.

As can be observed from the average annual rates mentioned above, their insurance rates are lower, and they even offer multi-policy discounts. Since the rates are calculated based on telematics and safety scores, the chances for an increase in insurance rates are based on your driving history.

EV Models Insurance Rates by Company

The most common insurers offering affordable insurance coverage for electric vehicles are Allstate, Farmers, Liberty Mutual, Nationwide, Progressive, State Farm, and USAA. Mentioned below are the insurance rates for different electric car models according to companies.

Tesla Model X

State Farm offers the cheapest insurance rates for a Tesla Model X, followed by USAA and Nationwide.

Company Average Annual Premium
Allstate $3787
Farmers $4609
Liberty Mutual $3322
Nationwide $2075
Progressive $2018
State Farm $1804
USAA $2137

Mitsubishi i-MiEV

Equally affordable to purchase and maintain, Mitsubishi I-MiEV is one of the cheapest to insure. The best rates for this model are offered by State Farm and USAA, followed by Liberty Mutual.

Company Average Annual Premium
Allstate $2365
Farmers $1841
Liberty Mutual $1356
Nationwide $1506
Progressive $2021
State Farm $1449
USAA $1124

Nissan Leaf

This is another affordable EV that is cheap to insure. The best insurance rates apart from USAA are provided by Nationwide, State Farm, and Progressive.

Company Average Annual Premium
Allstate $2399
Farmers $1775
Liberty Mutual $1691
Nationwide $1365
Progressive $1800
State Farm $1461
USAA $1164

Chevrolet Bolt

State Farm and USAA offer the most affordable insurance for this EV from Chevrolet.

Company Average Annual Premium
Allstate $2678
Farmers $1836
Liberty Mutual $1879
Nationwide $1802
Progressive $2050
State Farm $1653
USAA $1295

Hybrid Car Insurance

Similar to electric cars, hybrid cars are also expensive to insure when compared to their gas counterparts. Hybrid cars combine a gasoline engine and electric motor. Unlike EV insurance, the rates for hybrid cars are about seven to eleven percent higher than conventional car insurance rates.

The repair and replacement costs are also higher in the case of a hybrid car spiking the insurance rates. The lower noise levels and the higher mileage of hybrids also function as key factors in higher insurance rates apart from the common driving and non-driving factors.

Hybrid Car Insurance Rates According to Models

Chevrolet Volt

The average rate of insuring this hybrid car from Chevrolet is $1363 per year. The cheapest rates can be found with USAA, State Farm, and Nationwide.

Company Average Annual Premium
Allstate $2195
Farmers $1917
Liberty Mutual $1754
Nationwide $1355
Progressive $1615
State Farm $1421
USAA $1207

Ford C Max

It is cheap to purchase and insure this hybrid Ford model. The most affordable rates are provided by USAA and Nationwide.

Company Average Annual Premium
Allstate $2041
Farmers $1726
Liberty Mutual $1783
Nationwide $1324
Progressive $1654
State Farm $1440
USAA $1198

Toyota Prius

Toyota Prius is one of the most popular hybrid models from the most popular brands. It costs $1381 annually on average to insure this model from Toyota. However, several insurance companies provide affordable annual rates.

Company Average Annual Premium
Allstate $2118
Farmers $1716
Liberty Mutual $1724
Nationwide $1311
Progressive $1712
State Farm $1568
USAA $1134

Why do electric cars cost more to insure?

The major factors that are counted in while calculating the insurance rates of both gas and electric cars are similar. This would include age, location, and driving history, along with other factors like credit history, gender, and marital status. However, in the case of electric cars, companies consider several other factors as well.

  ●  Cost of Replacement

The parts of electric cars are costlier than conventional gas vehicles. In the case of an accident, the cost to repair will be considerably higher for an EV, thereby causing an increase in insurance rates.

  ●  Cost of Electric Batteries

The batteries are an integral part of an EV. The cost to replace a damaged battery will cost around $15000.

  ●  Cost of Labor

The repair work done for an EV is highly specialized, which calls for higher labor charges.

Car Insurance Cost of Electric vs. Gas Cars

Model Average Insurance Cost of EV Average Insurance Cost of Gas Car
Ford Fusion $2047 $1871
Ford Escape $1837 $1669
Honda Accord $1894 $1994
Honda CRV $1837 $1580
Toyota Camry $1976 $1904
Subaru Crosstrek $1847 $1612
Kia Soul $1276 $1482
Chevy Spark $1860 $1512

How to save on electric car insurance

  ●  Maintain a Clean Driving Record

This can help you claim the safe driver discounts that can be availed if one stays away from distracted driving, reckless driving, and accidents.

  ●  Claim the Available Discounts

There might be discounts available with insurance providers for multiple policies, safe driving, paperless discounts, and telematics discounts. Make sure you research the discounts offered by the company.

  ●  Tax Credits

The readily available federal tax credits work in favor of reduced prices if you own an EV.

  ●  Research and Shop

The research done for insurance can never be futile. Seeking online quotes from different providers and comparing them can give clarity on the available options and will help you choose the one that suits your needs.

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What are the benefits of driving electric vehicles?

No More Gas Stations

When your charging station is in your home, the long wait in gas stations would be an old memory.

Reduced Tailpipe Emissions

The emissions are less in electric vehicles. Thus, the environmental impact of EVs is minimal.

Decreased Expenses on Fuel

With gas prices rising daily, having an electric car will bring you savings in the long run. Charging an EV is cheaper when compared to gas.

Extended Battery Life

Battery being an integral component, requires constant maintenance. But in the case of EVs, the battery life is extended up to 12 or 15 years which doesn’t call for frequent change.

Low Maintenance

Conventional maintenance works like changing oil, gasket, or battery are not required in the case of an EV. This leads to saving on maintenance costs.

Summary

It is no secret that electric cars are expensive both in terms of buying and insuring them. However, the federal tax credit for EVs makes it an affordable option. The average insurance cost for an electric car is around $2160 and above, according to the model.

Though the cost of purchasing and maintaining an electric car is high, the environmental benefits are high, and the federal tax credits that can be availed at the time of purchase make it a viable option in the long run.

How to get Electric Car Insurance with Way.com

To reward yourself with a better price on your insurance rates, it is better to research and compare the quotes from different providers for electric car insurance rates.

With Way.com, the analysis of insurance rates is made simple. Better rates are provided based on criteria that will surely influence your insurance coverage experience, financial strength, customer service, and protection.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

Frequently Asked Questions

Do electric vehicles cost more to insure?

Electric vehicles are expensive to insure due to the high cost of parts and labor charges that entails in case of repair or replacement.

Do insurance providers offer discounts for electric vehicles?

Most insurance companies do not offer many discounts on electric cars. The few providers that extend discounts include Liberty Mutual and Travelers.

How can I find the cheapest car insurance for my electric vehicle?

Comparing quotes by researching them online with different providers is the best way to narrow down the provider that suits your needs the best. One has to also look for discounts on multiple policies and those exclusively available for EVs.

Does a Tesla cost more to insure?

Tesla models are priced high to insure with many of the national providers. However, Tesla insurance, even if restricted to a few states, provides rates that are lower than many of the cheapest providers. It costs $1905 on average to insure with Tesla insurance.

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