How Much Does Electric Car Insurance Cost?

If you’re planning to purchase an electric car, or if you’ve bought one already, it’s time to get the right car insurance policy to keep your EV financially protected. While setting up a budget for your electric car insurance, it’s essential to know its cost.  

On average, the cost of electric car insurance with state-mandated minimum coverage can range from $67 to $70 per month, which is $800 to $845 per year. While full coverage electric car insurance has an average cost of $337 to $350 per month, which translates to $4,044 to $4,200 per year in the U.S. 

Based on the average electric car insurance cost, it’s clear that EVs are expensive! In fact, it can cost you 20% to 49% more to insure an EV compared to a gas-powered car, mainly because it comes with more enhanced technology and specialized components. 

So, is the trade-off worth it, or are high premiums still a barrier to EV adoption? This article breaks down insurance costs by make and model, explains why EV coverage is pricier, analyzes whether prices are changing, and explores future trends to help you make an informed decision.

Electric Car Insurance Cost by Make and Model in 2026

It’s important to keep in mind that the national average electric car insurance may not necessarily apply in your case. In fact, it can be somewhat or significantly higher or lower, depending mainly on your car’s make and model.  

If you compare the car insurance cost of EVs like the Chevrolet Bolt with the Tesla Model X, the annual average premium of the Chevrolet Bolt is $2,556, while the Tesla Model X costs around $5,354 per year. That’s a difference of almost $2,800, or roughly 110% more, showing how premiums can vary dramatically based on the car’s make and model. 

To help you get a more accurate estimate, the table below shows electric car insurance premiums by make and model in 2025.

Source: Bankrate | As of November 2025 

Luxury EVs like the Tesla Model S and X have the highest premiums, while mainstream models such as the Chevrolet Bolt and Nissan Leaf are generally more affordable to insure. 

Apart from the average cost, your electric car insurance premiums can vary from one insurer to another. So, it’s essential to choose a reliable insurance company offering affordable auto insurance coverage for electric cars.

5 Most Expensive EVs to Insure in 2026

Based on the overall electric car cost analysis, here’s a breakdown of the 5 most expensive full coverage auto insurance premiums in 2025.

Luxury EVs like the Tesla Model X and S command the highest insurance premiums due to their advanced technology and high replacement costs.

5 Cheapest EVs to Insure in 2026

Somehow, EV insurance is perceived as super expensive, mainly because top-performing electric cars are generally expensive to insure. But EVs also come with affordable options for standard electric cars, and here’s a cost breakdown of the 5 cheapest electric cars with full coverage in 2025.

Mainstream EVs like the Chevrolet Bolt and Nissan Leaf offer more budget-friendly premiums, making them a practical choice for cost-conscious buyers.

Do Electric Cars Cost More to Insure?

Yes, electric vehicles (EVs) generally cost more to insure than their gas-powered counterparts. According to Bankrate, EV insurance premiums can be up to $2,800 higher. Other sources like ValuePenguin and Insurify report that EV insurance costs 20% to 49% more than for gasoline vehicles. Additionally, compared to hybrid cars, the cost of EV insurance is 7% to 11% more. 

If the average annual insurance premium for a gas-powered car is roughly $2,671, a 20% to 49% increase would place an EV’s average premium at around $3,205 to $3,979 per year, and often higher. In fact, many full-coverage EV premiums exceed $4,000 annually, which is more than double compared to the typical gas-powered car insurance premiums. 

Again, if you compare the average cost of hybrid cars compared to gas-powered cars, the average cost of hybrid car insurance can range from $2,858 to $2,965. This makes hybrid car insurance slightly more expensive than gas-powered cars, but significantly more affordable than electric vehicle insurance.

Why are Electric Vehicles More Expensive to Insure?

EV insurance premiums are typically higher than those for gas-powered and hybrid vehicles, largely due to higher purchase prices, expensive repair costs, advanced technology components, battery risks, and other factors. Here’s a breakdown of the key reasons why insuring an electric vehicle is significantly more expensive.

EVs have a Higher Purchasing Price

Electric vehicles generally cost more to purchase than comparable gas-powered cars, and that higher price directly affects insurance premiums. For example, the gas-powered Ford F-150 starts at around $40,960, while its electric counterpart, the Ford F-150 Lightning, has a starting price of about $54,769. Similarly, the Hyundai Kona costs approximately $22,595, compared to $35,295 for the Hyundai Kona Electric. 

A higher purchase price means a higher replacement value. If an EV is totaled in an accident or gets stolen, the insurer must cover its actual cash value, which is significantly higher than a standard gas-powered car. So, the more expensive the car is, the higher the insurance premium is likely to be, and that’s one reason why electric cars are more expensive to insure.

Electric Cars Cost More to Repair

Another major reason why EVs are more expensive to insure is due to their higher repair cost. According to Kelly Blue Book, the average repair cost of a post-accident EV is $6,066 compared to a gas-powered car, which is around $4,703.  

As EVs contain more advanced technology and specialized components, their parts and labor are significantly more expensive. Research indicates that repairing an electric vehicle can cost around 30% more than repairing a standard gasoline car. In contrast, higher repair bills mean higher claim payouts for insurers, which leads to higher premiums for EV owners.

Only Specialized Auto Repair Shops Offer EV Repairs

When it comes to EV repairs, there’s still a major skill gap despite the growing use of electric cars. Even today, only 3% of auto technicians are proficient in repairing electric cars, and fewer than 10% are qualified to handle EV batteries.  

Approximately, about 55% of auto repair shops offer electric car repair, which means almost half of the auto repair shops in the U.S. are not equipped to fix an EV after an accident.  

Typically, as EV repairs require specialized training, advanced equipment, and manufacturer certification, the repair cost is significantly higher, which means insurers need to pay more to cover EV claims. So, that’s why premiums for electric car insurance are more expensive compared to gas-powered cars.

Longer Repair Time

Does car insurance cover EV battery damage? 

Yes, comprehensive and collision coverage generally cover battery damage resulting from accidents, theft, fire, or vandalism. However, normal battery degradation is not covered.

Will electric car insurance become cheaper over time?

Possibly yes, as EV adoption increases, repair networks expand, and battery technology improves, insurance costs may gradually decline. For now, premiums remain higher than for gas-powered cars.

What factors affect the cost of electric car insurance?

Key rating factors that influence electric car insurance premiums include the car’s make and model, battery size, repair costs, driving history, age, location, coverage limits, and annual mileage. 

Do electric cars require special insurance?

No special policy type is required, but coverage may be priced differently due to unique vehicle components and risk factors. Standard auto insurance policies apply to EVs, hybrids, and gas vehicles.