EVs Cost 49% More to Insure Than Gas-Powered Cars, Data Reveals

The average cost of car insurance has remained relatively steady over the last year, according to Insurify’s auto insurance report. But electric vehicle (EV) drivers are experiencing a different reality. Insurance costs for EVs have risen by 16% over the past 12 months.

Drivers pay 49% more to insure EVs than gas-powered cars, according to Insurify data. EV drivers face an average insurance cost of $4,058 per year. By comparison, the average cost to insure a gas-powered vehicle is $2,732, per Insurify data.

The higher cost of repairing and replacing EVs can account for much of that difference, since premiums reflect the risk and expense of paying out claims.

EV adoption and related factors, like charging infrastructure, incentives, and the availability of specialized mechanics, also affect insurance costs by influencing maintenance and ownership costs. EV buyers have been able to save up to $7,500 with the federal EV tax credit. But the credit expires on Sept. 30. The loss of the tax credit could hinder further EV adoption and lead to rising insurance premiums.

Millennials and Gen Z make up the largest share of EV drivers, Insurify data shows. The advanced driving technology and environmental benefits of EVs appeal to these forward-thinking generations. But affordability remains a priority.

“I think in the long run, state policies promoting the purchase of EVs are what will ultimately decide the fate of these cars,” Carl Rodriguez, founder and head of marketing at NX Auto Transport, told Insurify. “Higher adoption rates dictate the availability and price of repairs, charging rates, and even insurance costs. That’s the bulk of EV expenses right there.”

Key findings

• The average annual cost of insuring an EV is $4,058, according to Insurify data — 49% higher than the average to insure a gas-powered car.

• The Tesla Model X and Model 3 are the most expensive EVs to insure, per Insurify data. The Model X has an average annual cost of $4,765 for full coverage, an increase of 36% since last year.

• Full-coverage car insurance for EVs costs up to 99% more than for gas-powered cars in Arkansas, Pennsylvania, and Idaho. Low adoption rates and minimal EV infrastructure are primary cost drivers.

• Drivers in New Jersey and California pay 15% to 31% more to insure an EV compared to a gas-powered car. High adoption rates, expanding EV infrastructure, and strong state-specific financial incentives account for the smaller price difference.

• EV drivers have a lower DUI rate (0.50%) than gas-powered car drivers (0.70%), according to Insurify data.

Tesla’s EVs are the most popular, but they’re also the most expensive to insure

While EVs often come with a higher insurance cost, Insurify data shows that Tesla EVs top the list. The Tesla Model X, a luxury SUV with falcon-wing doors, is Tesla’s most expensive model, according to Kelley Blue Book (KBB). It also has the highest average insurance costs, per Insurify data.

A 2025 Tesla Model 3 costs around half the price of a 2025 Tesla Model X, according to KBB. But Insurify data shows it’s still the second most expensive EV to insure. While its battery has a slightly lower range and about half to three-quarters the capacity of the Model X, its technology is still costly to repair.

Claims data can shed light on insurance costs, too. The average claims frequency for a repairable, collision-damaged EV is 3.12% for the first quarter of 2025, according to auto insights company Mitchell.^[1] But the claims frequency for the Tesla Model 3 is 26.95%, signaling to insurers that these models require frequent repairs. The claims frequency for the Tesla Model X is 3.68% — considerably closer to average.

The Tesla Model Y and Model S are the next most expensive EVs to insure, Insurify data shows. The Model S is a much more expensive car than the Model Y, according to KBB. But the Model Y has a claims frequency of 29.47%, compared to the Model S’s claims frequency of 5.22%, according to Mitchell.

Insurify data shows that these EVs are 26% more expensive to insure on average than comparable vehicle makes and models.

The 10 states where drivers pay significantly more to insure EVs

Severe weather, vandalism, and theft affect premiums for all vehicles. When vehicles are more expensive to repair or replace, insurance costs often increase to account for that risk. Insurance rates across the country reflect this: Some areas have higher vehicle theft rates, while others are prone to hail, hurricanes, or wildfires.

Adoption rates also affect EV insurance costs. Adam Bushell, director of AB Electrical & Communications, told Insurify that fewer EVs in an area means less experience with how much claims will cost. To protect themselves, insurers estimate costs will be high and set premiums accordingly.

1. Arkansas

• Cost difference of insuring an EV vs. a gas-powered car: 99%

• Average annual premium for EVs: $4,817

• Average annual premium for gas-powered cars: $2,415

Though Arkansas’ EV registration has grown significantly in the past few years, the state’s adoption rate is still comparatively low. About 0.27% of registered vehicles in Arkansas are EVs, according to the most recent data from the U.S. Department of Energy (DOE).^[3] The nationwide adoption rate is 1.24%.

“If there were a higher adoption rate, there would be more incentive to open shops that work on EVs,” Daniel Lucas, carrier relations manager at Insurify, explained. “Arkansas doesn’t have as many EV repair shops as California, for example, which can lead to higher repair costs and rental fees because of the longer wait time.”

Barriers to adoption persist, and two plans for funding charging stations statewide have either run out or stalled. While EVs can bring savings in the long run, the starting costs can be prohibitive. Installing a relatively efficient charger at home can cost $500 to $2,000, according to J.D. Power.^[4]

Tesla also doesn’t operate a store in Arkansas, limiting the number of EV models available.

Arkansas faces severe weather risks, notably tornadoes, hail, and lightning. Comprehensive insurance covers a windshield replacement due to hail damage, but sensors and cameras in the windshields of most EVs can make that repair much more expensive.

2. Pennsylvania

• Cost difference of insuring an EV vs. a gas-powered car: 99%

• Average annual premium for EVs: $4,598

• Average annual premium for gas-powered cars: $2,314

Pennsylvania is taking steps to reduce barriers to EV ownership. The state offers rebates for new and one-time pre-owned alternative fuel vehicles. Drivers can apply for rebates of $500 to $3,000, and low-income households may receive an additional $1,000.

Pennsylvania also has 90 charging station projects underway. Of those, 17 opened before the federal government paused funding for the National Electric Vehicle Infrastructure (NEVI) program.^[5]

Pennsylvania’s EV adoption rate is 0.69%, per the DOE, just above half of the U.S. average. EV registrations are mainly in counties with urban areas, especially around Philadelphia and Pittsburgh, according to the Pennsylvania Department of Transportation.

Auto insurance is often more expensive for any vehicle type in urban areas, given the increased risk of collisions, theft, and vandalism.^[6] That higher risk can also increase premiums since EVs are more expensive to repair and replace.

3. Idaho

• Cost difference of insuring an EV vs. a gas-powered car: 95%

• Average annual premium for EVs: $3,332

• Average annual premium for gas-powered cars: $1,708

Idaho is investing in EV infrastructure alongside other states. Idaho submitted a NEVI proposal to install five fast-charging stations along major roadways, adding to a growing network. But the federal government paused the program for review before project work could begin.

Idaho’s EV adoption rate is relatively low, at 0.43%. But migration from California may explain why Idaho is backing EV infrastructure, even with low statewide adoption. Former Californians accounted for 6.2% of Idaho’s migration-related population growth in 2023, according to the American Community Survey.^[7] Former Washington residents come in second, accounting for 5.3%.

California and Washington have the highest EV adoption rates in the country, at 3.41% and 2.23%, respectively, according to the DOE. But infrastructure takes time, and EV drivers moving to Idaho may see higher insurance rates as the state hurries to catch up.

4. Iowa

• Cost difference of insuring an EV vs. a gas-powered car: 87%

• Average annual premium for EVs: $3,354

• Average annual premium for gas-powered cars: $1,793

Iowa’s low EV adoption rate of 0.29% and the limited number of specialized mechanics likely contribute to Iowa drivers paying more to insure an EV. Iowa awarded funding to install 28 charging stations along interstates last October, but the funding pause has the projects on hold.^[8]

All Iowa drivers pay higher insurance rates thanks to severe weather, especially hailstorms and tornadoes. In 2024 alone, Iowa experienced 330 severe hailstorms, including 37 with hail 2 inches or larger, and 15 extremely severe tornadoes, the National Oceanic and Atmospheric Administration (NOAA) reported.^[9]

Iowa also saw a 12% increase in traffic fatalities between 2022 and 2023, according to the National Highway Traffic Safety Administration (NHTSA).^[10]

“Elevated risk, a higher-priced car that’s more expensive to repair, and fewer places to fix it can raise insurance costs,” Lucas said.

5. Delaware

• Cost difference of insuring an EV vs. a gas-powered car: 76%

• Average annual premium for EVs: $5,840

• Average annual premium for gas-powered cars: $3,310

Delaware faces high auto insurance costs and is among the 10 most expensive states for car insurance, according to Insurify’s report. The state’s high population density also increases the chance of a car accident, which insurers consider when setting rates.

Delaware’s EV adoption rate is closer to the national average, at 0.92%. The state has a rebate program for eligible new and used EVs and for installing charging stations for public access, fleet or workplace use, and multi-family dwellings. Multi-family homes in priority areas can get a 90% reimbursement for certain installations.

Delaware is actively expanding its EV charging infrastructure and received most of its NEVI funding before the federal government paused the program.^[11]

6. Louisiana

• Cost difference of insuring an EV vs. a gas-powered car: 72%

• Average annual premium for EVs: $5,197

• Average annual premium for gas-powered cars: $3,015

Louisiana is also among the 10 most expensive states for car insurance, according to Insurify’s report. Hurricanes, tornadoes, and hail have mostly affected home insurance costs but also influence car insurance rates. Severe weather increases the likelihood of comprehensive insurance claims.

EV insurance rates may drop over time as a more extensive claim history becomes available, according to the National Association of Insurance Commissioners (NAIC).^[12] But Louisiana’s low adoption rate of 0.22% means insurers lack robust regional data on accidents and battery replacements.

7. Indiana

• Cost difference of insuring an EV vs. a gas-powered car: 71%

• Average annual premium for EVs: $3,520

• Average annual premium for gas-powered cars: $2,061

Indiana’s EV adoption rate is relatively low, at 0.42%. But like other states, Indiana plans to use the NEVI funding — if available — to install EV charging stations across the state. Several area utility companies offer rebates to commercial and residential customers for installing a charging station, but the state doesn’t offer incentives.

The ease of buying an EV may also affect adoption and, in turn, insurance costs in Indiana. In most states, franchise laws forbid automakers from selling directly to consumers, favoring the traditional dealership model. Tesla gets around this somewhat by operating “stores,” and it has only two in Indiana, both in the Indianapolis area.

8. Nevada

• Cost difference of insuring an EV vs. a gas-powered car: 70%

• Average annual premium for EVs: $5,791

• Average annual premium for gas-powered cars: $3,403

Nevada is the first state on this list to have an adoption rate higher than the U.S. average, at 1.85% of vehicle registrations, according to the DOE. Las Vegas alone is home to 1,397 public charging stations, according to ChargeHub, suggesting EV infrastructure supports higher adoption.

But Nevada is also among the most expensive states for car insurance, according to Insurify data. A high vehicle theft rate contributes to these higher premiums for EVs. Nevada had the fifth-highest vehicle crime rate in 2024 and the third-highest rate in 2023, according to the National Insurance Crime Bureau (NICB).^[13]

9. New Mexico

• Cost difference of insuring an EV vs. a gas-powered car: 70%

• Average annual premium for EVs: $3,597

• Average annual premium for gas-powered cars: $2,117

New Mexico’s EV adoption rate is 0.52%, which is relatively low for the region. And the state has only two Tesla stores. But a new state law requires 43% of new cars shipped to New Mexico dealerships in 2026 to be zero-emission vehicles. New Mexico also offers a tax credit of up to $3,000 for buying an EV and an additional $400 credit for installing a charger at home.

New Mexico is also among the states with the highest poverty rate in the U.S., according to the U.S. Census Bureau. This could mean the higher costs associated with EVs present a significant barrier to higher adoption in the state.

New Mexico also had the third-highest vehicle theft rate in 2024, per the NICB, increasing statewide claims costs.

10. Florida

• Cost difference of insuring an EV vs. a gas-powered car: 66%

• Average annual premium for EVs: $5,283

• Average annual premium for gas-powered cars: $3,189

Florida’s EV adoption rate is 1.37% — higher than the U.S. average — and the charging infrastructure reflects that. Orlando has 1,194 public charging stations, and Miami has 1,144, according to ChargeHub. Florida is also home to 28 Tesla stores.

Florida is among the 10 most expensive states for car insurance, according to Insurify’s report. Severe weather, high insurer losses, and insurance fraud, especially for auto glass claims, have contributed to rising auto insurance rates statewide. Given the increased cost of repairs for EVs, any factor affecting claims frequency and cost can significantly affect EV car insurance rates.

5 states where drivers pay the least to insure EVs compared to gas-powered cars

In certain states, EV popularity, state incentives, and developing charging networks have begun bringing EV insurance costs more in line with standard auto insurance. Still, paying 15%–37% more for anything is a notable increase. That’s like the $129 Apple AirPods 4 suddenly costing up to $177.

“[A]s the EV market matures, the expansion of charging infrastructure reduces drivers’ time and range costs, spurs higher adoption, and, in turn, induces further infrastructure investment, reinforcing a positive feedback loop,” Jia Yan, an economics professor at Washington State University, told Insurify.

Increasing adoption, better EV charging infrastructure, and expanded EV repair availability will all help reduce insurance costs in time, Bushell of AB Electrical & Communications said.

1. New Jersey

• Cost difference of insuring an EV vs. a gas-powered car: 15%

• Average annual premium for EVs: $3,563

• Average annual premium for gas-powered cars: $3,095

Several factors explain why New Jersey drivers pay the smallest difference between insuring an EV and a gas-powered car. New Jersey has its own EV incentive, in addition to the soon-to-end federal EV tax credit program. Drivers can immediately apply a $1,500 credit when buying or leasing a new EV. Plus, income-eligible drivers can qualify for up to $4,000. Property owners can also receive $250 to install a charger at their home.

New Jersey’s EV adoption rate is also above the U.S. average, at 1.84%, per the DOE. And it’s easier to buy and charge EVs. The state is home to eight Tesla shops, with more nearby in Philadelphia and New York City. It also has a growing EV charging infrastructure, concentrated in urban areas.

NX’s Rodriguez told Insurify that adoption plays a key role in overall costs.

“[I]magine your state doesn’t have a high adoption rate and its policies do not suggest a change anytime soon,” he said. “There will be a shortage of mechanics who have a specific know-how of EVs. This not only makes [drivers] panicky, but [causes] insurance companies to charge higher premiums. For the user, it’s a lose-lose situation.”

2. California

• Cost difference of insuring an EV vs. a gas-powered car: 31%

• Average annual premium for EVs: $3,827

• Average annual premium for gas-powered cars: $2,924

California has the highest EV adoption rate in the country, at 3.41%, which can have a domino effect, Rodriguez said.

“A state’s EV adoption rate directly influences a user’s confidence and ultimately how much they’d be willing to contribute to owning an EV,” he said. “The higher the EV adoption rate, the more comfortable users feel.”

It also leads to many specialized EV mechanics and more charging stations, lowering financial and emotional costs, he said. The number of gas-powered cars on the road will peak this year in California, according to an analysis from Recurrent, as gas cars exit operation and EV sales grow.^[14]

Though funding has run out for certain rebates, California has a history of offering financial incentives at the state and municipal levels to reduce the cost of buying an EV or installing a home charger. And California already has more charging stations than gas stations, Recurrent reports.

3. Maryland

• Cost difference of insuring an EV vs. a gas-powered car: 35%

• Average annual premium for EVs: $6,142

• Average annual premium for gas-powered cars: $4,555

Maryland is the most expensive state for car insurance, according to Insurify’s auto insurance report. The high rate of car thefts in Maryland and specific state policies increasing insurers’ financial risk have led to higher rates across the board.

But its 1.37% adoption rate and growing EV availability and charging infrastructure have likely helped close the price gap between insuring an EV and a gas-powered car. Maryland also offers an EV tax credit for up to $3,000.

Maryland’s EV registrations are concentrated in densely populated areas, like Montgomery County, outside Washington, D.C., and Baltimore. Since car insurance is typically more expensive in urban areas, the higher financial risk of insuring an EV may drive up premiums.

4. Illinois

• Cost difference of insuring an EV vs. a gas-powered car: 37%

• Average annual premium for EVs: $3,342

• Average annual premium for gas-powered cars: $2,447

Illinois’ EV adoption rate is 0.89%, according to the DOE and the Illinois Department of Transportation (IDOT). The state is aggressively investing in EV accessibility and infrastructure. Illinois has distributed 11,309 rebates to EV drivers since 2022, according to the Illinois Environmental Protection Agency.^[15]

Drivers can get a $4,000 rebate for buying an EV and a $1,500 rebate for purchasing an all-electric motorcycle.

Before the federal government paused NEVI funding, Illinois awarded grants to construct 182 new charging ports around the state, according to the IDOT. Several utility companies have also pledged funding for boosting EV fleet vehicle purchases, building charging stations, or offering incentives for installing home charging, sharing EV charging data, and shifting electrical usage.

5. Arizona

• Cost difference of insuring an EV vs. a gas-powered car: 37%

• Average annual premium for EVs: $3,043

• Average annual premium for gas-powered cars: $2,221

Arizona doesn’t offer EV rebates, but it does have a few incentives that may have helped the state achieve a 1.33% adoption rate, per the Arizona Department of Transportation. These include allowing EV drivers to park in designated carpool spaces, use the HOV lane, and qualify for tax exemptions, according to Electrify Arizona.

Arizona is also building out its charging infrastructure and has awarded NEVI funding to construct 89 EV charging ports. The Salt River Project, a nonprofit water and energy provider in Arizona, has also created an incentive program of $1,500 to $20,000 for nonprofits, businesses, government agencies, multifamily housing complexes, and schools to install EV charging stations.

Behind the curtain: Why it costs more to insure an EV

Insurers base prices on risk, and insuring a car that’s more expensive to repair or replace adds to the company’s financial risk.

EVs cost 22% more to repair than gas-powered cars, according to Mitchell’s May EV Collision Insights report. The average price of a new EV was $57,734 in June, while the average for gas-powered vehicles was $48,799, according to KBB. In the event of a total loss, insurers could pay an average of 18% more to replace an EV.

EVs require more mechanical labor hours as well: 3.04 hours vs. 1.66 for gas-powered cars, Mitchell reported last year. Because many EVs require original manufacturer parts, mechanics can’t pull from a vast inventory of aftermarket and recycled parts, which often lowers repair costs for gas-powered cars, according to KBB.

Many newer cars, not just EVs, have technology that makes them more expensive to insure and repair. Advanced driver assistance systems (ADAS) often include multiple sensors and cameras and are vulnerable to even minor collision damage.

EVs have the added element of a specialized battery that can be extremely expensive to replace. Tesla batteries, for example, are a structural part of the car and more costly to repair, according to KBB. But average EV battery prices are falling, and a 2024 report from Goldman Sachs projects prices will continue to fall over the next five years.^[16]

The elimination of the EV tax credit may affect adoption

The EV tax credit of $7,500 for new cars and $4,000 for used cars will expire on Sept. 30. While some states have incentives to lower the purchase price, eliminating the federal EV credit means ending a strategy that helped reduce the up-front cost difference between EVs and gas-powered cars.

In a recent Insurify survey of members of Gen Z, 44% of respondents said eliminating the EV tax credit will affect their decision to buy an EV. Gen Z accounts for 25% of EV drivers, second behind Millennials’ 41%, according to Insurify data.

Eliminating the credit will slow EV adoption considerably, though how much remains to be seen, Dr. Tim Lipman, co-director of the Transportation Sustainability Research Center at the University of California, Berkeley, told Insurify.

“Hopefully, bringing more lower-cost models onto the market in the next few years will help to mitigate this and give middle-income households more options, [since] low-income households rarely buy new cars of any type,” he said.

While EVs’ initial costs are usually higher, they need maintenance and service less frequently than gas-powered cars, which can bring down costs. Less expensive fuel requirements can also make an EV cheaper in the long run.

“EVs don’t require oil changes, have fewer moving parts, and electricity is usually less expensive per mile than gasoline — particularly if you can charge at home,” Liz Najman, director of market insights at Recurrent, told Insurify. “The break-even point — when owning an EV becomes more cost-effective than a comparable gas car — varies depending on local energy costs, incentives, and how much you drive.”

Bushell said many other factors will eventually lower EV ownership costs.

“The sticker price of EVs is being decreased by powerful forces even without federal tax credits,” he said. “The greatest of them is the declining cost of battery production. An EV has 30% to 50% of its cost in batteries.”

Bushell called out the scale of production, state and local incentives, expanding public charging infrastructure, and battery recycling as key elements of long-term EV affordability.

How the EV driver profile could influence insurance costs

The national average cost of insuring an EV is $4,058 per year — 49% higher than for a gas-powered car, which is $2,732, according to Insurify data.

Numerous factors, including driver-specific details, affect the price of auto insurance in general, as well as the cost of EVs and insuring an EV. For example, while not all states allow it, many states can use credit history and gender to help determine premiums, in addition to someone’s driving record.

While EV drivers can encompass any number of characteristics, Insurify’s proprietary database of more than 97 million auto insurance quotes shows some patterns among EV usage.

• EV drivers have a lower DUI rate than gas car drivers, about 0.50% versus 0.70%, per Insurify data.

• EVs are also no more likely to be totaled than gas-powered cars, according to a 2024 Mitchell report. That suggests EV repair and replacement costs, not necessarily higher claims or accident frequency, drive up EV insurance rates.

• A higher share of EV drivers have excellent credit compared to total driver share, Insurify data shows. But Millennials and Gen Z have the lowest average credit scores compared to other generations, according to a 2024 Experian analysis. Since Insurify data shows Millennials and Gen Z make up the highest share of EV drivers, there may be a subset of Millennial and Gen Z drivers with higher credit and the means to afford the expense.

Tips: How to pay less to insure an EV

The strategies for saving money on insurance, for any car, are consistent.

Drivers who already own an EV can often save by shopping around for car insurance every so often to make sure they’re paying the cheapest rate available.

Low-mileage drivers and safe drivers can also save with telematics or usage-based insurance policies that tie premiums to driving data from a GPS device or smartphone app. Reducing certain coverages, taking advantage of discounts, and maintaining a good credit history can also help drivers save.

As EV battery costs decrease, lowering the cost of repairs and replacements, insurance premiums may also go down.

“Increased adoption increases data, improves risk models, and [expands] repair networks, which will eventually lower insurance premiums in the long term,” Bushell said.

Methodology

Insurify’s team of data scientists examined more than 97 million quotes in its proprietary database, quoted via integrations with partnering insurance companies, to determine average car insurance rates for gas-powered cars and EVs. Rates reflect the average annual cost of a full-coverage car insurance policy (up to $50,000 bodily injury coverage per person and $100,000 per accident, a $50,000 property damage limit, and a $1,000 deductible for both comprehensive and collision coverage) for gas-powered cars and EVs with a model year of 2020 or later. Rates reflected in the analysis of EVs and comparable models include vehicles of various model years. Unless otherwise specified, the quotes are for a driver with a clean driving record and average or better credit.

This report includes proprietary data from an online survey that Insurify commissioned. The survey respondents comprised 1,002 U.S. residents between 22 and 28 years old. Respondents answered up to 20 questions about their views on driver status, self-driving cars, texting while driving, EVs, and driving stressors, among other topics. The survey fieldwork took place from June 4 to June 5, 2025.

For media inquiries or questions about our study, please contact the author here.