A recent study shows that EV insurance rates are significantly higher than those for gasoline-powered cars, averaging 49% more nationwide.
According to data from Insurify, the annual average insurance premium for an electric vehicle in the U.S. is $4,058, compared with $2,732 for a gasoline vehicle. Researchers attribute this gap to EVs’ higher purchase prices, costly repairs, and more frequent insurance claims.
All four of the highest-cost vehicles for annual insurance are Tesla models. The Tesla Model X leads the list at $4,765 per year, which is 65% higher than the comparable Audi Q5 at $2,889. The Tesla Model 3 follows at $4,546, a 27% increase over the Mercedes-Benz A-Class at $3,592.
The Tesla Model Y, the brand’s best-selling vehicle, averages $4,189 annually, compared to the Audi Q3 at $2,915, a 44% difference. By contrast, the Tesla Model S averaged $3,909, slightly lower than the Audi A7.
Among Hyundai vehicles, the Hyundai Ioniq 5 averaged $3,503 annually, while the Hyundai Kona averaged $2,621. The Kia EV6 was $3,062 compared to $2,552 for the Kia Sportage. These figures illustrate a consistent premium gap between electric and gasoline cars within the same brand.
Insurance rate gaps vary widely by state. California has the nation’s second-smallest difference, with EV insurance averaging $3,827 annually versus $2,924 for gas cars, a 31% gap. New Jersey has the smallest difference at 15%.
Insurify credits California’s strong EV adoption and charging infrastructure for allowing insurers to gather sufficient data and lower premiums. However, some insurers catering to high-risk drivers, including Aspire, Bristol West, and National General, still restrict EV coverage in California.
States with lower EV adoption and limited specialized repair services report much higher premiums. In Arkansas, EV insurance is 99% higher than for gas vehicles, while Idaho shows a 95% difference, nearly doubling rates.
Experts note that while EVs often carry higher accident repair costs, they can offset expenses with lower fuel and routine maintenance costs over time. They also predict that as EV adoption increases and repair networks expand, insurance premiums will gradually stabilize.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
