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Compare electric car insurance
Electric car owners save on gas but may pay more for insurance.
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. But some factors are more unique to electric cars.
An electric car may run you more to insure than a gas-powered car because of:
- New tech. 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.
- Specialty mechanics. The repairs might also need to be carried out by specialist electric car mechanics, further upping the price — and consequently, the premiums.
- Higher MSRP. Base costs affect insurance rates, and electric cars tend to be pricier — that means repairs and replacements are more expensive even after accounting for the battery.
- Risk to pedestrians. 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.
- Look for electric vehicle discounts. You can shop with companies like Travelers that offer hybrid or electric car discounts because of their lower environmental impact.
- Save in other ways. Make sure you’re taking advantage of tax breaks on electric vehicles.
- Shop around. Companies that specialize in luxury or electric cars are more familiar with specialty vehicles.
Compare insurance for your electric car
Add-ons 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.
- Extra liability. 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. 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. If your battery is replaced with an aftermarket version, it could potentially decrease your range or have a shorter lifespan.
How much is car insurance for electric cars?
Electric vehicles typically cost $140 to $200 per month to insure, according to our independent research of insurance rates for car models. That cost is higher than the national average of $108 per month.
However, hybrids cost less to insure, such as the Toyota Prius which runs at $100 a month for car insurance.
Insurance rates for popular electric cars
As more electrics come on the market and insurance companies gather more safety data, you could see average premiums dip. For now, compare rates for electric models you like if you haven’t pulled the plug on buying yet.
| Electric car make & model | Average 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 |
Why buy an electric car?
Electric and hybrid cars are quickly becoming more common, which might explain why charging stations for electric cars are popping up all over the US. Most major automakers have at least one electric or hybrid vehicle available, and according to our estimates, over 17% of Americans would be interested in driving an electric vehicle. This increase in demand may be due to lower long-term ownership costs and a growing interest in environmental sustainability.
- Electric cars have lower-than-average driving costs at $8,439 per year.
- Electric cars have the lowest annual maintenance and repair costs, at $982 per year.
- It’s cheaper to “fill up” with an average cost of 3.68 cents per mile compared to 13.88 cents per mile for a pickup truck. In this case, you could save $1,500 per year if you drive 15,000 miles.
- Watch out for depreciation, and expect average annual loss to be nearly $6,000, compared to about $4,000 per year on gas and diesel vehicles.
- Some road trips require finding an EV charging station, which might not be available everywhere.
- Electric and hybrid vehicles can be more expensive to insure
| Make | Model | monthly insurance rate | MSRP |
|---|---|---|---|
| Audi | Q4 E-tron | $197 | $45,000 |
| Byton | M-Byte | N/A | $75,988 |
| BMW | i3 | $181 | $46,250 |
| Chevrolet | Bolt EV | $478 | $39,000 |
| Ford | F-150 hybrid | $169 | $33,000 |
| Ford | Mustang Mach-E | $240 | $58,300 |
| GMC | Hummer EV | $300 | $112,600 |
| Hyundai | Ioniq Electric | $227 | $22,200 |
| Hyundai | Kona Electric | $122 | $36,450 |
| Jaguar | I-Pace | N/A | $69,500 |
| Kia | Niro EV | $478 | $39,000 |
| MINI | Cooper SE | $227 | $20,950 |
| Nissan | Leaf S Plus | $185 | $30,680 |
| Porsche | Taycan | $400 | $150,000 |
| Renault | Zoe | N/A | $50,270 |
| Rivian | R1T | $350 | $67,500 |
| Tesla | Model 3 | $539 | $46,000 |
| Tesla | Model S | $227 | $68,000 |
| Tesla | Model X | $181 | $85,000 |
| Toyota | Prius | $100 | $23,475 |
| Volkswagen | Golf | $158 | $19,895 |
| Volvo | XC60 | $220 | $40,950 |
Bottom line
More and more drivers are doing their part 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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