How much more EV insurance costs
Insurify analyzed more than 235 million insurance rates for its 2026 study. The average EV driver paid $3,159 a year for coverage, compared with $2,218 for a gas-powered car. That's $941 a year, or about $78 a month, more. The EV average has come down from a peak of $3,509 in March 2025.
The headline gap overstates the difference for most new-car shoppers. EVs on the road are newer than the average gas car, and older gas cars are cheap to insure, which drags the gas average down. When Insurify compared only 2024-and-newer vehicles, EVs averaged $3,293 and gas cars $2,792, an 18% ($501) gap.
| Comparison | EV (avg. per year) | Gas (avg. per year) | EV costs more by |
|---|---|---|---|
| All vehicles | $3,159 | $2,218 | 42% |
| 2024-and-newer models | $3,293 | $2,792 | 18% |
Source: Insurify EV insurance study, reported by Carscoops (June 13, 2026) and Car Dealership Guy (June 12, 2026).
The gap depends on your state
Where you live changes the picture more than you might expect.
| Location | EV (per year) | Gas (per year) | Difference |
|---|---|---|---|
| Massachusetts | $3,560 | $2,318 | +54% |
| New York | $4,531 | $3,135 | +45% |
| Rhode Island | $6,043 | $4,344 | +39% |
| Washington, D.C. | $6,102 | $4,821 | +27% |
| Montana | $2,242 | $2,339 | −4% |
| West Virginia | $2,062 | $2,148 | −4% |
| Nebraska | $2,055 | $2,086 | −1% |
Source: Insurify EV insurance study via Carscoops (June 2026). Carscoops describes most state comparisons as being for newer (2024-and-later) vehicles; the reports do not state the vehicle years for every row.
In Montana, West Virginia and Nebraska, EV drivers actually paid slightly less than gas-car drivers. Insurify attributed Massachusetts' wide gap to dense urban driving, higher-value vehicles and higher EV repair labor costs.
Which EVs cost the most to insure
Luxury and high-performance EVs top the list. Insurify's most expensive EVs to insure for full coverage were the Mercedes-Benz EQS Sedan ($4,703 a year), Tesla Model S ($4,558), BMW i5 ($4,554), Tesla Model 3 ($4,489) and Tesla Model X ($4,474). Five Tesla models were in the top 10. The Tesla Cybertruck averaged $4,135, compared with $2,754 for a Chevrolet Silverado pickup. Before you buy, get a quote on the exact model and trim you're considering.
Why EVs cost more to insure
Higher purchase prices
Insurance pays to replace your car if it's totaled, so a more expensive car means a more expensive policy. Insurify cites an average new-EV transaction price of $55,211 in April, versus $48,997 for gas models. Used EVs and used gas cars were much closer ($35,895 versus $34,799).
Costlier repairs
Mitchell's EV collision report found that the average repairable claim for a battery-electric vehicle cost $5,684 in the second quarter of 2026, versus $4,955 for a gas vehicle. That $729 gap, about 15%, is the smallest Mitchell has recorded, but EVs still cost more to fix. Mitchell says EVs rely more on original-manufacturer replacement parts and have fewer parts repaired rather than replaced, and their systems are more complex and interconnected. It also warns that tariffs and trade uncertainty could push parts costs higher. Insurify adds that a limited supply of certified EV mechanics keeps labor costs up.
The battery
The battery is the most expensive part of an EV. State Farm estimates that battery replacement could cost $5,000 to $15,000, not counting labor. A damaged battery pack can turn an otherwise moderate crash into a very large claim, and Insurify notes that battery replacement after a collision or comprehensive claim can push rates up.
What an EV policy covers
State Farm notes that coverage for electric and gas cars is largely the same: liability, collision, comprehensive, uninsured/underinsured motorist, medical payments and roadside service. A few points matter more for EVs.
- Battery damage. Liberty Mutual explains that battery damage from a covered event, such as a collision, fire, vandalism or storm, is generally covered by collision or comprehensive, minus your deductible. Normal wear, gradual loss of range and manufacturing defects are not; those fall under the manufacturer's warranty.
- Roadside help. If your policy includes emergency road service, State Farm says it could pay for towing to a place where you can charge if you run out of power.
- Total losses and gap coverage. If an EV is totaled, insurers typically pay its depreciated value. If you owe more on your loan than the car is worth, gap coverage pays the difference. See our guide to auto loans if you're financing.
Is your home charger covered?
A wall charger can cost real money, and it may fall under your home policy, your auto policy or neither, depending on what happened.
- Homeowners insurance: Liberty Mutual says a permanently installed home charger is typically covered by homeowners insurance if a covered peril such as fire, storm or vandalism damages it. State Farm says installing a home charger shouldn't affect your homeowners policy, though you may need an electrician to add a breaker. Our home insurance guide explains what standard policies cover.
- Auto insurance: If you back into your own charger, Liberty Mutual says collision coverage may apply. State Farm says comprehensive and collision may cover charging equipment damaged in a covered loss.
- EV add-ons: Some insurers sell specific charger coverage. Lemonade Car covers certain damage to a wall charger you own at the address where you park, with no deductible on a covered claim. It excludes manufacturer defects, misuse and wear, and using a non-approved cable could void coverage.
- Public chargers are generally the operator's responsibility.
Insurer programs for EV owners
- Tesla Insurance: Sold in 12 states (Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia). Outside California, where the practice is prohibited, it prices policies partly on real-time driving data from the car itself. Its Safety Score drops for things like following too closely, speeding above 85 mph and driving between 10 p.m. and 4 a.m. Every policy includes coverage for wall charger damage, electronic key replacement and cyber identity fraud. Insurify lists limited discounts that vary by state as a drawback, and notes reviews citing slow claims. Insurify's own quote data puts the average cost of insuring a Tesla at $388 to $423 a month, depending on the model, so compare Tesla's quote with other insurers rather than assuming it will be cheaper.
- Travelers: Offers a hybrid car discount and a new car discount for cars less than three years old. It doesn't publish the percentage, so ask whether your EV qualifies.
- Telematics programs: Usage-based programs such as State Farm's Drive Safe & Save (up to 30%, not offered in California, Massachusetts or Rhode Island) apply to EVs too.
- EV endorsements: Liberty Mutual notes that some insurers offer packaged EV endorsements covering home chargers, mobile charging help and battery protection. Availability varies by insurer and state.
Tips to lower EV insurance costs
- Quote before you buy. Premiums vary widely by model. In Insurify's data, the most expensive EVs to insure averaged more than $4,400 a year, well above the $3,159 EV average. Getting quotes on two or three models you're considering shows the real cost of ownership before you sign.
- Compare several insurers. Not every company prices EVs the same way. Our list of the cheapest car insurance companies is a starting point.
- Choose your deductible carefully. A higher deductible lowers your premium, but EV repairs average more than $5,600 per claim, so keep cash on hand.
- Ask about every discount. Bundling, telematics, good student and new-car discounts all apply to EVs.
- Confirm battery and charger coverage in writing. Ask whether the insurer uses manufacturer parts for repairs and how it handles a damaged battery pack.
- Re-shop as the market matures. The EV repair cost gap is narrowing, and average EV premiums have fallen since their 2025 peak. Our article on car insurance rate trends covers the wider market.
Frequently asked questions
Is insurance more expensive for electric cars?
On average, yes. Insurify's 2026 study found EV owners paid $3,159 a year versus $2,218 for gas cars, 42% more. For 2024-and-newer models, the gap was 18%. In Montana, West Virginia and Nebraska, EVs averaged slightly less.
Does car insurance cover EV battery damage?
Battery damage from a covered event, such as a crash, fire, vandalism or storm, is generally covered under collision or comprehensive, minus your deductible. Gradual loss of range and manufacturing defects are not covered; those fall under the manufacturer's warranty.
Is my home EV charger covered by insurance?
Often by homeowners insurance if a covered peril like fire or a storm damages it. If you hit it with your car, your auto collision coverage may apply. Some auto insurers, such as Lemonade and Tesla Insurance, include specific wall charger coverage.
Which EVs are most expensive to insure?
In Insurify's 2026 data, the Mercedes-Benz EQS Sedan, Tesla Model S, BMW i5, Tesla Model 3 and Tesla Model X had the highest average full-coverage premiums, between about $4,470 and $4,700 a year.
Do insurers offer EV discounts?
Some do, but terms vary. Travelers offers a hybrid car discount and a new car discount without publishing percentages. Telematics, bundling and good student discounts apply to EVs as well. Ask each insurer directly.
Where is Tesla Insurance available?
As of October 2026, Insurify lists 12 states: Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah and Virginia.
Sources
- Carscoops – EV insurance cost study (June 13, 2026)
- Car Dealership Guy – EVs cost 42% more to insure than gas vehicles, Insurify finds (June 2026)
- Mitchell – Plugged-In: EV Collision Insights Q2 2026
- State Farm – Electric car insurance
- Liberty Mutual / Safeco – EV battery and charging coverage
- Lemonade – Wall charger coverage
- Insurify – Tesla auto insurance review (Oct. 2026)
- Travelers – Car insurance discounts
- State Farm – Drive Safe & Save
Rates, fees and terms change often. Figures were checked in October 2026; confirm current details with the provider before you apply.