Drivers Ditching Gas Vehicles for EVs Face Higher Crash Risks, Study Shows

First-time EV drivers are 14% more likely to file an insurance claim, report says.

Evelyn Pimplaskar
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.

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John Leach
Edited byJohn Leach
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John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

  • NPN: 20461358

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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Switching from a gas-powered vehicle to an electric vehicle won’t just increase your car insurance premium. It could also increase your risk of getting into an accident and filing a car insurance claim, a recent report indicates.

And that claim could be more severe and costly.

In 2024, drivers who replaced their internal combustion engine (ICE) vehicles with EVs were 14% more likely to file a claim, according to the latest data from LexisNexis. Those claims were 15% more severe and cost 31% more.

The risk management company’s data dovetails with a recent Insurify report that found EVs generally cost 49% more to insure than ICE vehicles. “Insurers base prices on risk, and insuring a car that’s more expensive to repair or replace adds to the company’s financial risk,” report author Julia Taliesin wrote.

As EV adoption grows, so does risk — and costs

The number of EVs insured in the U.S. increased 40% in 2024, landing at 5.6 million, LexisNexis reported. That growth was much higher than the increase in the total number of private passenger vehicles insured during the same period, according to the report.

Americans are still driving far fewer EVs than ICE vehicles. But the amount of paid claims for EVs was higher than the total number of EVs on the road, LexisNexis reported.

The report attributes the uptick to a natural learning curve as drivers get used to their EVs. Such “transition risks” aren’t unique to EVs, LexisNexis noted. Similar trends occur for drivers switching from small sedans to large vehicles like pickup trucks or SUVs.

Once drivers become familiar with their new vehicles, the frequency of claims will likely decline, according to the report. “The distinct driving experience of EVs leads to an even larger learning curve, with a higher initial increase and steeper subsequent decrease from claim frequencies,” the report stated.

While drivers’ crash risks may decline once they’re familiar with their EVs, the high cost of EV repairs will likely continue to hold their insurance costs above ICE vehicle premiums, Insurify reported.

Generally, EVs cost 22% more to repair than ICE vehicles, according to Mitchell International. The average claim cost for EVs in 2024 was $5,927. By comparison, the average for ICE vehicles was $4,857.Claims costs directly affect insurance premiums for all drivers, Taliesin said.

“The average price of a new EV is higher than the average for a gas-powered car,” she said. “To repair an EV, you might only be able to get original manufacturer parts, which tend to cost more than aftermarket and recycled options. And labor costs are generally higher for EVs because mechanics typically need specialized training and work more hours to repair an EV.”

What’s next: Will insurers adapt to EV transition risk?

In its report, LexisNexis encourages insurers to proactively account for transition risks associated with new EV ownership. Doing so could help companies maintain profitability, the report said.

“U.S. auto insurers need to better understand the risks associated with recent changes in households, drivers or vehicles,” LexisNexis said. “Drivers of EVs have steeper learning curves as they adapt to the distinct driving experiences. Insurers should account for transition risk in their underwriting and pricing practices.”

Evelyn Pimplaskar
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.

John Leach
Edited byJohn LeachSenior Insurance Copy Editor
Photo of an Insurify author
John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

  • NPN: 20461358

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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