Are EVs and Plug-in Hybrids Cheaper to Insure?
Electric cars are usually more expensive to insure than comparable gas cars, not cheaper, mainly because they cost more to buy and repair. Plug-in hybrids (PHEVs) typically fall in between: often a little more than the gas version of the same model, but less than a similar full EV. Regular hybrids are often close to gas-car rates. The gap varies widely by model: mainstream EVs like the Chevrolet Bolt or Nissan Leaf can be reasonable to insure, while luxury and high-performance EVs can be expensive. Some insurers offer discounts for hybrids and EVs, which can narrow the difference.
EV Vs. PHEV Vs. Hybrid Vs. Gas: Insurance Cost Comparison
| Vehicle Type | Typical Insurance Cost vs. Comparable Gas Car | Main Reasons |
|---|---|---|
| Battery electric (EV) | Often higher | Higher purchase price, costly battery and body repairs, advanced sensors |
| Plug-in hybrid (PHEV) | Often somewhat higher | Higher price, larger battery than a hybrid |
| Hybrid (HEV) | Often similar or slightly higher | Small battery, parts widely available |
| Gas (ICE) | Baseline | Established repair networks and parts |
This is a general pattern from industry rate comparisons; individual quotes vary widely by model and driver.
How Much More Does EV Insurance Cost?
Insurify’s analysis of 2025 US quote data put the average EV premium at $4,058 a year, compared with $2,732 for gas vehicles:
| Vehicle type | Average annual premium | Monthly |
|---|---|---|
| Electric vehicles | $4,058 | About $338 |
| Gas vehicles | $2,732 | About $228 |
| Difference | About $1,326 more for EVs (roughly 49%) | About $110 |
Other studies find smaller gaps, often in the 10% to 30% range, depending on which models and driver profiles they compare. The average EV is also newer and pricier than the average gas car on the road, which inflates the gap. Comparing the electric and gas versions of the same model, such as a Hyundai Kona Electric and a gas Kona, gives a fairer picture for your own decision.
Why EVs Can Cost More to Insure
- Higher purchase price: more expensive cars cost more to replace if totaled.
- Battery damage: even moderate crashes can require battery inspection, and damaged packs are very expensive to replace.
- Repair costs: aluminum bodies, advanced driver-assistance sensors and specialized parts raise repair bills.
- Fewer certified repair shops: some EVs must be repaired at approved body shops, which can mean higher labor costs and longer repair times.
- Instant torque and weight: heavy, quick EVs can cause more damage in crashes.
- Higher total-loss rate: insurers sometimes total EVs after damage that might be repairable on a gas car.
Why Some EVs and Hybrids Can Be Cheaper to Insure
- Strong safety ratings: many EVs perform very well in crash tests.
- Driver profile: EV and hybrid owners as a group may drive fewer miles or more cautiously, which some insurers reward.
- Discounts: some insurers offer hybrid or alternative fuel vehicle discounts in certain states.
- Lower-priced models: affordable EVs can have premiums close to similar gas cars.
- Telematics: usage-based programs can reward smooth EV driving.
Are PHEVs Cheaper to Insure Than EVs?
Often, yes, but not always. A plug-in hybrid usually has a smaller battery and a lower price than a comparable EV, which can mean lower repair and replacement costs. However, a PHEV also has both an engine and a battery system. For example, a plug-in version of a popular SUV often costs a bit more to insure than its hybrid or gas sibling because of the higher price and larger battery. Compare quotes on the exact models you are considering.
How to Lower Insurance on an EV or PHEV
- Get quotes before you buy: check several models and trims.
- Compare multiple insurers: some price EVs much more favorably than others.
- Ask about green vehicle or hybrid discounts.
- Raise your deductibles if you have savings to cover them.
- Bundle policies and ask about multi-car discounts.
- Try a telematics program if you drive safely and not too much.
- Choose a mainstream model rather than a luxury or performance EV.
- Park in a garage and install approved anti-theft devices.
- Keep a clean driving record and continuous coverage.
When you find a better rate, our guide on how to switch car insurance explains how to change insurers smoothly.
Total Cost of Ownership Matters More Than Insurance Alone
Even if insurance costs more, EVs often save money on fuel and maintenance. Estimate your charging costs with our EV charging cost calculator, read about lower upkeep in do electric cars need oil changes, and compare everything together with our total cost of ownership calculator.
Special Coverages to Consider for EVs
- Gap insurance: useful if you finance or lease, since EVs can depreciate quickly.
- New car replacement: pays for a new vehicle if your EV is totaled early.
- Charging equipment coverage: some insurers cover home chargers and charging cables.
- Roadside assistance with EV towing: covers towing to a charger if you run out of charge.
- OEM parts endorsement: ensures repairs use original manufacturer parts.
Not insurance advice: Insurance rates depend on your state, insurer, vehicle, driving record, credit (where allowed) and coverage choices. Get personalized quotes before buying a vehicle.
Related guides: Total cost of ownership calculator · How to switch car insurance · EV charging cost calculator
EV and PHEV Insurance FAQs
Usually yes. Insurify’s 2025 data put the average EV premium at $4,058 a year versus $2,732 for gas vehicles, about 49% more, mainly because EVs cost more to buy and repair. Comparable mainstream EVs are often much closer to gas-car rates.
Often, because PHEVs usually cost less and have smaller batteries. But they typically cost a bit more to insure than the gas or hybrid version of the same model.
Tesla models can be expensive to repair, require certified shops, and include high-performance versions, all of which raise insurance costs. Rates vary by model and insurer.
Collision and comprehensive coverage typically cover battery damage from a covered event such as a crash or flood, but not normal wear or degradation, which falls under the manufacturer’s warranty.
