Electric car insurance

Electric car owners save on gas but may pay more for insurance.

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Electric cars are environmentally friendly, plus you’ll save on gas and get a tax credit for your new purchase. But some of that extra money might have to go to insuring your new car.

Why do electric cars cost more to insure?

Just like traditional car insurance, premiums are based on a number of factors, including the car’s value, age and performance, as well as the driver’s age, driving record and location.

  • Electric cars rely heavily on new technology, and are much more expensive to repair after an accident — the battery alone can cost upwards of $10,000 on some models.
  • The repairs might also need to be carried out by specialist electric car mechanics, further upping the price — and consequently, the premiums.
  • Electric cars tend to cost more, which means repairs are more expensive even after accounting for the battery.
  • Electric cars can also pose a greater risk to pedestrians who may fail to hear the quiet engine of an electric car approaching at slow speeds.

How to get cheap electric car insurance

To save on your insurance:

  • Choose a coverage level that suits you. When it comes to car insurance, more isn’t always better. For example, if your car is worth $15,000, $30,000 of collision coverage would be too much — the maximum amount the insurer will pay out is the value of your car.
  • Limit optional extras if you don’t need them. For example, new cars and some credit cards come with roadside assistance, so you won’t need to add it to your insurance policy.
  • Increase your deductible. Agreeing to pay a bigger deductible could make your overall premium cheaper. But don’t agree to a deductible that’s more than you can afford to pay.
  • Increase security. If your car is not currently fitted with an alarm, think about adding one to reduce your premium.
  • Have a secure location to park your car. Cars kept in a garage or on a secure driveway are usually cheaper to insure.
  • Limit your mileage. If you start working part-time or your long commute becomes much shorter, letting your insurer know about a reduction in your mileage could result in cheaper insurance for lower mileage.
  • Avoid paying monthly. Some insurers will offer discounts to customers who pay annually.
  • Limit modifications. Any modification made to your car to make it look better or drive faster are likely to increase your premiums, so think carefully before making any changes.
  • Save in other ways. Make sure you’re taking advantage of tax breaks on electric vehicles from federal and state governments.
  • Shop around. Shop around and compare your options to find the best deal — and shop around again when your policy is up instead of automatically renewing.
  • Save with multiple discounts
  • Instant quotes and access to agent support anytime
  • Available in 42 states

Best insurance for electric cars: Travelers

Travelers' five-step online guide takes the frustration out of building the perfect policy.

  • Financial strength
  • Multiple discounts
  • Friendly website with quick quotes
  • Access to agents

Compare insurance for your electric car

Name Product Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
All 50 states
Save up to 31% with safe driver discounts and bundling all your rides in one convenient policy.
Only pay for how much you drive with the Metromile app. Get rates from $29/month plus pennies per mile.
All 50 states
Get free quotes from top insurers for the exact coverage you need in minutes.
All 50 states
It's quick and easy to get an online quote with Geico, and you might be surprised at how much you could save.
All states except AK, HI, LA, MI, RI
Drivers over 50 and AARP members enjoy special car insurance pricing and benefits.
All 50 states
Enjoy premium perks like better car replacement and accident forgiveness plus local agent support.
All 50 states
Enjoy having your own dedicated agent to help you get the best discounts and coverage.
All states except AK, DE, HI, MT, NH, VT, WY
Esurance offers a modern online and mobile experience that helps you take your insurance on the go. Available in 42 states.
Root offers simple, affordable insurance that’s ideal for good drivers. Try the Root app for 2 weeks and see how much you could save.
A new company with a minimalist approach to insurance. Find basic coverage, low rates and online-based service.
All 50 states
Backed by nearly 100 years in the business, Farmers Insurance aims to offer options and support to help you find the coverage you need.
Elephant Insurance offers low-cost auto insurance with big discounts. Breaking from the national herd could save up to 40% off your current car insurance.

Compare up to 4 providers

Thing to consider when insuring an electric car

Before choosing an insurer, look into whether you’ll be covered for:

  • Special parts. Check to see if the special parts of your electric car, such as power cables and charging devices, are covered under your policy if they’re damaged and need to be replaced.
  • Liability. As electric cars need to be plugged into a power source, you’ll need to be careful about where your charging power cables are positioned to ensure they don’t become a safety hazard for pedestrians. You’ll also want to check with your insurer to find out if your liability coverage extends to passengers who trip over charging cables when your car is parked.
  • Genuine or OEM parts. Electric car batteries are not all the same, and if your battery is replaced with an aftermarket version, it could potentially decrease your range or have a shorter lifespan. Find out what kind of parts will be used if your car needs to be repaired after an accident.

How much is car insurance for electric cars?

Thinking of getting an electric car but haven’t pulled the trigger yet? Compare insurance rates for some of the best electric cars available on the market.

Insurance rates for popular electric cars

Electric car make & modelAverage monthly insurance rate
BMW 3 Series$178
BMW i8$161
Chevrolet Bolt EV$238
Honda Clarity$197
Kia Soul EV$174
Mitsubishi i-Miev$187
Nissan Leaf$185
Tesla Model S$227
Tesla Model X$227
Toyota Mirai$220

Compare all car models

Bottom line

More and more drivers are doing their bit for the environment by choosing to drive electric cars, but they’re still not the most popular or cheapest cars to insure. While you may save money in the long run by cutting gas out of your budget, expect to pay a little more for insurance.

You can cut your insurance costs down by comparing quotes from car insurers before choosing a policy.

Frequently asked questions about insuring electric cars

Picture: Shutterstock

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