Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
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Electric vehicle owners may spend less on fuel for their vehicles, but they pay more for car insurance — a lot more.
Full-coverage car insurance for EVs averages $3,430 annually compared to $2,778 for gas-powered internal combustion engine (ICE) vehicles, according to a new report by Insurify. Higher sale prices and higher repair costs for EVs contribute to the elevated cost of insuring these vehicles, Insurify data analysts said.
Comparing EV costs to ICE vehicle costs
Electric vehicles can cost significantly less to power than an ICE car. Drivers who charge their EVs only at home could spend as little as $812 per year on electricity for their vehicles, according to Kelley Blue Book (KBB) calculations. By comparison, the average annual cost of gas is around $2,449, J.D. Power estimated based on Bureau of Labor Statistics data.
But other expenses, including the initial cost to purchase an EV, higher repair costs, and much higher insurance premiums can offset the fuel savings.
The average MSRP for EVs is $55,105 — 13% more than the average for ICEs, at $48,724, according to KBB. Auto insurers also charge more for higher-value vehicles since they typically cost more to repair or replace.
The average cost to repair an EV after an accident is $6,066, about 29% higher than the $4,703 average post-accident repair for ICEs, KBB reported.
All these factors contribute to EVs’ higher insurance rates. In 2024, it cost 23% more to insure an EV than an ICE vehicle, Insurify data shows. And the cost of EV car insurance rose 28% between 2022 and 2023, while car insurance for ICE vehicles increased by only 13% during the same time period.
EVs with the highest insurance costs
When stacked up to average insurance premiums for comparable ICE vehicles, some EV models fare worse than others.
For example, the Tesla Model 3 was the most expensive EV to insure out of the nine EV models that Insurify data scientists analyzed. The Model 3’s average annual full-coverage insurance premium was $4,362 in 2024. That’s 25% more than the cost to insure a comparable gas-powered Mercedes Benz A-Class.
EV Model
▲▼
Average Annual Cost of EV Full Coverage (2024)
▲▼
Comparable ICE Model
▲▼
Average Annual Cost of ICE Full Coverage (2024)
▲▼
EV Cost Difference Compared to ICE Models
▲▼
Tesla Model 3
$4,362
Mercedes Benz A-Class
$3,486
25%
Tesla Model X
$3,958
Audi Q3
$2,828
40%
Tesla Model Y
$3,939
Audi Q5
$2,874
37%
Hyundai Ioniq 5
$3,621
Hyundai Kona
$2,572
41%
Tesla Model S
$3,535
Audi A7
$3,612
-2%
Kia EV6
$3,132
Kia Sportage
$2,372
32%
Volkswagen ID.4
$2,937
Volkswagen Tiguan
$2,540
16%
Chevrolet Bolt EUV
$2,792
Chevrolet Trax
$2,306
21%
F-150 Lightning
$2,591
Ford F-150
$2,408
8%
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
What’s next for the U.S. EV market
More Americans bought electric vehicles in 2024, with sales surging by 11% in the third quarter of the year, according to Kelley Blue Book. But if the new administration repeals a $7,500 Biden administration tax credit for EVs, sales could plunge, according to the National Bureau of Economic Research (NBER).
In 2023, the first full year the EV tax credit was available, sales of electric vehicles soared by 46%, Cox Automotive reported. But EV sales could drop by 8% to 27% if the tax credit goes away, NBER researchers predicted.
A decline in the number of EVs purchased won’t necessarily lead to a drop in insurance costs, said Chase Gardner, data insights manager for Insurify.
“The cost of parts and labor for repairs for all vehicles has been rising since the pandemic,” Gardner said. “If EV sales fall drastically, it’s possible ‘green parts’ — secondhand original equipment parts — could become less readily available. Insurers and repair shops would have to spend more for new OE parts, and they’ll pass that cost on to consumers.”
Insurify’s car insurance data is available for download from its Auto Insurance Data Center. Members of the media looking for additional data or insights should email [email protected].
Evelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.
Before joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as tax editor for Credit Karma, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.
Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.
Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris SchaferDeputy Managing Editor, News and Marketing Content
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.
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