Electric vehicles (EVs) have seen rapid growth in the U.S. market, with nearly 80% of vehicles sold now being fully electric, compared to less than 1% just a decade ago. However, potential EV buyers may overlook an important cost factor — insurance.
According to a recent study by Insurify, insuring an electric vehicle in Florida can cost significantly more than a gas-powered car. In fact, Florida ranks 10th highest in the nation for EV insurance premiums, with the average cost for insuring an EV coming in at $5,283 annually, which is 66% higher than the $3,189 annual premium for a gasoline vehicle.
Julia Taliesin, a data journalist at Insurify, explained, “It’s around $2,000 a year more to insure an EV in Florida.” One key reason for this price gap is that electric vehicles tend to be more expensive to repair than their gasoline counterparts. In Florida, a hurricane-prone state, saltwater flooding can corrode EV batteries, causing fires and additional damage, further increasing the repair costs.
The Study Methodology
The study assumed a safe driving record with standard coverage:
Bodily Injury: $50,000 per accident (maximum $100,000)
Property Damage: $50,000
Deductible: $1,000
The findings revealed that, while premiums for electric vehicles in Florida are higher, the gap is not consistent across all models. For example, when comparing the Hyundai Kona EV to its gasoline counterpart, the insurance premium for the EV was $1,204, while the gasoline version was slightly higher at $1,218. Similarly, the Chevrolet Equinox EV had a premium of $1,164, compared to $1,174 for the gas model.
Even with slightly higher premiums for some EV models, there are notable cost savings in other areas. According to Roger Deally of Holler-Classic Automotive Group, “Charging an EV is about a third of the price of what you would pay at the gas pump.” Additionally, EV owners save money on maintenance as electric vehicles don’t require frequent oil changes, which are typically done every 6 to 7 months for gasoline-powered cars.
With a federal tax credit of up to $7,500 for all-electric vehicles expiring at the end of this month, many buyers are currently showing strong interest in EVs. As battery costs continue to decrease and more affordable models enter the market, insurance premiums for electric vehicles could see a reduction, closing the gap between EVs and gasoline vehicles.
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