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Nearly half of drivers are considering an electric vehicle for their next car or truck, which reflects growing frustration with gas prices and rising climate concerns. EVs are becoming increasingly more attractive and feel more attainable, which brings practical questions about total cost of ownership to the surface. By almost every comparison, EVs are better than gas or diesel-powered vehicles. One exception can be the cost of insurance.
This has led to a lot of interesting social media discussion about varying EV insurance rates across North America. Here’s a recent, thoughtful post on Reddit by Brandon_Storm with a ton of responses from other EV drivers from across the country.
“I wanted to get my own EV, and got the papers drawn up. I had the cash in hand, and the dealership is stoked that I didn’t make them reassure me for weeks regarding range anxiety. Also, I’m stoked to never have to change my oil again.
I just needed to dot a few ‘I’s’ and cross a few ‘T’s’ and button it up with some insurance to drive out of there.
For reference, my current insurance is $140 a month, but they were kind enough to say I could have this beautiful EV for… $328 a month! Wow, only 2.5x more money every month? What a deal!
Absolutely killed the deal.
I see this as a major hurdle in EV adoption. It negates one of the most obvious appeals of EV ownership which is reduced cost of ownership.”
zxcvbn113 responded by commenting that they had a different experience:
“I went from a 2015 Impreza to a 2024 Ioniq 5. My insurance dropped a couple hundred per year (New Brunswick, Canada).”
BurritoLover2016 suggested changing insurance companies:
“Yeah, I had to drop Mercury for Progressive when I got my EV. Mercury wanted to double my monthly rate and I also had my wife’s Hybrid on my policy. Progressive was $5 cheaper.
Some insurance companies will just hope you don’t notice or care. Always shop around and be willing to jump ship if they jack up your rates.”
Why EV Insurance Premiums Often Run Higher
Insuring an EV typically costs more because repairs and replacements are more expensive, and qualified shops are less common. Insurers see higher loss costs when claims occur, which gets priced into premiums. For example, there are many more qualified mechanics for legacy gas-powered vehicles like a Toyota Camry or Ford F-150 compared to the number of EV certified options for newer EVs like the Tesla Model Y or Rivian R1T. This can be especially true in more rural areas.
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Coverage Choices Can Influence the Premium Cost
Liability only policies look similar for EVs and gas cars. However, a higher percentage of EVs are purchased new and new EV buyers usually carry comprehensive and collision, which raises premiums. The extra protection follows the higher values and specialized components that EVs bring.
For example, full coverage quotes for a new Toyota RAV4 can range from about $80 per month to roughly $350, depending on the insurer. Quotes for a Tesla Model Y for the same driver start around $250, and fewer carriers participate, which tightens price competition.
Automotive Premiums Vary Depending on Where You Live
Regional car insurance rate variation is real. Price the same EV and a comparable gas SUV across cities, and premiums swing widely. For example, a Tesla Model Y in a wildfire exposed suburb with street parking can rate hundreds higher than a Toyota RAV4 in a low loss Midwestern town. The mix of insurers in the region affects quotes, since some carriers avoid high voltage repairs while others reward Advanced Driver Assistance Systems (ADAS) and telematics. Garaging in a locked garage lowers theft exposure, while dense downtown parking and hail belts lift comprehensive risk. State rules matter, since regulators in some markets approve sizable increases after climate losses while others delay filings and slow adjustments. Regions where carriers paused new business or tightened underwriting show higher prices due to limited competition. Shoppers feel punished or rewarded by their ZIP code rather than their driving. A quick scan shows us that highest EV insurance rates are in Florida, Louisiana, and Michigan. We found the lowest rates in North Carolina, Ohio, and Hawaii. Smart strategy involves quoting widely, adjusting garaging details honestly, and favoring models with cheaper parts and quicker repair networks.
ADAS are the suite of safety and convenience features that help a driver avoid crashes and reduce fatigue. These systems use cameras, radar, and ultrasonic sensors to monitor lanes, traffic, and obstacles. Common features include automatic emergency braking, lane keeping assist, adaptive cruise control, blind spot monitoring, rear cross traffic alert, traffic sign recognition, parking assist, surround view cameras, and driver monitoring. Benefits include fewer minor collisions, smoother highway driving, and better visibility in tricky spots. Limitations remain in poor weather and cluttered environments, so the driver must stay engaged at all times. ADAS can lower claim frequency, although calibration and repair costs after a windshield replacement or a front-end bump can raise repair bills, which sometimes affects premiums.
Where Costs Are Headed
Ownership costs should ease as charging networks expand and more EV certified technicians enter the market. Greater repair capacity and more actuarial will data help insurers price risk more precisely, which will narrow today’s premium differences between gas-powered vehicles and EVs.
Bottom Line
EV insurance often costs more right now, although the gap varies by vehicle model, location, and coverage. Smart shopping with quote tools can offset part of the difference, while fuel savings and lower routine maintenance strengthen the overall value case. If an EV is on your shortlist, price insurance early, compare comprehensively, and evaluate the full ownership picture with care. In every case we have examined, owning an EV is much cheaper than owning a gas-powered over a 50,000-mile life and beyond.
Please Drop Your Thoughts in the Comments Below
Did your premium rise or fall when you moved from a gas car to an EV of similar value, and by how much?
If you tried Tesla Insurance, how did it compare with State Farm, Progressive, GEICO, or USAA on price and claims?
Chris Johnston is the author of SAE’s comprehensive book on electric vehicles, “The Arrival of The Electric Car.” His coverage on Torque News focuses on electric vehicles. Chris has decades of product management experience in telematics, mobile computing, and wireless communications. Chris has a B.S. in electrical engineering from Purdue University and an MBA. He lives in Seattle. When not working, Chris enjoys restoring classic wooden boats, open water swimming, cycling and flying (as a private pilot). You can connect with Chris on LinkedIn and follow his work on X at ChrisJohnstonEV.
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Source: torquenews.com
