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

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.”

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