Last reviewed: October 2026 · By the SmartCoverage Editorial Team · How we research
Electric cars usually cost more to insure than gas cars. MoneyGeek’s 2026 analysis of 33 EV models found an average of $3,281 a year for full coverage, compared with about $2,578 for the average car in Insurance.com’s data for a similar driver profile. The Zebra, using a different mix of vehicles and drivers, puts the gap even wider, at around 63%. But the model makes a huge difference: a Hyundai Ioniq 5 averaged $1,962 a year, less than many gas cars, while a Tesla Model Y averaged $3,343.
And insurance is only one running cost. Below you can compare the full yearly bill, insurance plus fuel or charging, for your own numbers.
Why EVs cost more to insure
Insurers price on what a claim is likely to cost, and EV claims tend to be bigger:
None of these are about how EV owners drive. They are about repair bills, which is why prices vary so much by model and why the gap may narrow as repair networks grow.
What popular EVs cost to insure
| Model | Full coverage | Minimum coverage |
|---|---|---|
| Hyundai Ioniq 5 | $1,962 | $1,005 |
| Nissan Leaf | $2,064 | $1,053 |
| Kia EV6 | $2,213 | $1,129 |
| Ford Mustang Mach-E | $2,328 | $1,188 |
| Rivian R1S | $3,008 | $1,534 |
| Tesla Model 3 | $3,268 | $1,667 |
| Tesla Model Y | $3,343 | $1,705 |
Across all 33 models in the study, the cheapest EV to insure was the Chevrolet Silverado EV ($1,947 a year) and the most expensive the Audi SQ8 e-tron ($10,402). If you are still choosing a car, get insurance quotes for two or three models before you buy: the difference can be over $1,000 a year.
Insurance plus charging: the full yearly cost
EV or gas: what you pay each year to insure and fuel it
Insurance is only half the story. Enter your own quotes and driving, and see whether cheaper charging makes up for the higher premium.
Electric car
Gas car
Example figures: average EV full coverage from MoneyGeek (2026) and average full coverage for a 40-year-old from Insurance.com (2026); electricity price is the EIA’s 2026 US home average and gas the EIA’s 2026 average for regular. Public fast charging usually costs more than home charging. Excludes purchase price, maintenance and incentives. Results are estimates only.
With the example figures, the EV costs about $700 more to insure but about $900 less to power, so it comes out slightly ahead. The result swings on three numbers you control: your insurance quote, how many miles you drive, and how much of your charging happens at home rather than at public fast chargers.
What to add to an EV policy
Because EV repairs often take longer and use specialist parts, two optional coverages are worth more on an electric car than on a typical gas car:
- Rental reimbursement, which pays for a rental car while yours is in the shop. With longer repair times, the rental bill can add up quickly.
- New car replacement or gap insurance for a new or financed EV, which helps if the car is totalled while you still owe more than it is worth.
Ask each insurer whether it uses manufacturer parts for EV repairs and whether it has approved repair shops for your model nearby.
How to pay less to insure an EV
- Compare several insurers. EV pricing varies more between companies than for most gas cars. Use our shortlist builder to see who sells in your state, and our quote worksheet to compare like for like.
- Ask about EV and hybrid discounts. Travelers and Lemonade both advertise discounts for electric and hybrid vehicles.
- Check Tesla Insurance if you drive a Tesla. It is sold directly to owners in 13 states and, outside California, prices are based partly on a real-time Safety Score from the car.
- Choose your deductible carefully. Because EV repairs are expensive, a higher collision deductible saves more than on a cheap gas car, but make sure you can pay it.
- Keep full coverage while the car is new. Dropping collision rarely makes sense on an EV worth tens of thousands of dollars; our full coverage calculator shows when it starts to.
Quick answers
Does car insurance cover the EV battery?
Collision and comprehensive coverage pay for battery damage caused by a covered event, such as a crash, fire or flood, after your deductible. They do not cover normal battery wear or loss of range, which falls under the manufacturer’s battery warranty.
Is a hybrid cheaper to insure than an EV?
Usually, yes. In MoneyGeek’s 2026 data, hybrids averaged $2,956 a year for full coverage against $3,281 for EVs. Plug-in hybrids were the most expensive group, at $5,185.
Is my home charger covered?
A charger installed at your home is usually treated as part of the house, so it falls under homeowners or renters insurance rather than car insurance. Check your home policy, and tell your insurer if you install one.
Sources
- MoneyGeek: Electric vehicle insurance costs and coverage in 2026 (updated August 24, 2026)
- The Zebra: Insurance rates for hybrid and electric cars (updated May 2026)
- Insurance.com: Average full coverage cost in 2026
- US Energy Information Administration: Short-Term Energy Outlook (October 2026; electricity and gasoline prices)
This guide is for informational purposes only and is not insurance advice. Prices are averages for one driver profile and vary by state, model and insurer. Fuel and electricity costs change; enter your own figures in the calculator.