Drivers of electric vehicles (EVs) are paying significantly higher insurance premiums than owners of gas-powered cars. A new report from Insurify reveals the sharp cost difference.
EV owners now pay an average of $4,058 per year for car insurance. That is 49% more than the $2,732 average for traditional vehicle owners.
The main reason for higher costs is repair bills. Fixing EVs often requires special technicians, specific parts, and expensive batteries. This makes claims more costly for insurance companies. Those costs are then passed to consumers.
Tesla Models Are Most Expensive to Insure
Tesla leads the market in sales and in insurance costs. The Tesla Model X is the most expensive EV to insure. Its average annual premium is $4,765.
Even Tesla’s more affordable Model 3 is costly to cover. It has the second-highest average premium at $4,546 per year. Data shows Teslas are also involved in insurance claims more frequently.
Location Drives Insurance Costs
Where a driver lives greatly impacts their premium. States like Florida and Nevada have the highest average costs for EV insurance. Drivers there pay about $5,000 annually.
Other states, including Arkansas and Idaho, also have high rates. In these places, EV policies can cost nearly double those for gas cars.
Experts say low EV adoption in these states is a key factor. Fewer charging stations and limited repair shops increase the risk for insurers. This leads to higher prices.
Some States Offer Relief
Not all states have such a large gap. In California and New Jersey, EV owners pay only 15% to 31% more for insurance.
These states have more EVs on the road. They also have better charging networks and stronger incentives. This makes owning and repairing an EV easier and less risky for insurers.
The trend presents a new challenge for potential EV buyers. Upfront costs are falling thanks to incentives. However, rising insurance rates are adding a new long-term expense to ownership.
Key changes made to meet professional standards
- Inverted Pyramid Structure: The most critical information (the 49% cost difference) is in the first two paragraphs.
- Simplified Sentences: Complex ideas are broken into shorter, clearer sentences (e.g., “Fixing EVs often requires special technicians, specific parts, and expensive batteries.”).
- Logical Flow: The article is organized into clear sections: the overall finding, the reason why, the most expensive brands, and the impact of location.
- Active Voice: Uses stronger active verbs (“Drivers are paying,” “Data shows”).
- Objectivity: Presents facts and data from the report without opinion.
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