Do EVs really cost more to insure?
Sometimes, but not always. Insurance prices depend on how often a vehicle has claims and how much those claims cost, plus the usual driver and location factors. EVs tend to cost more to buy and repair, which pushes collision and comprehensive premiums up. Liability premiums depend more on the driver and on how much damage and injury the vehicle tends to cause, and there the picture is more favorable.
NAIC's consumer guide notes that rates are generally higher for cars that cost more to repair or replace and for cars with special features such as hybrid engines. Model choice matters as much as the powertrain, so compare specific vehicles in our vehicle insurance cost index.
What HLDI insurance loss data shows
The Highway Loss Data Institute (HLDI), an affiliate of IIHS, analyzes insurance claims by make and model. In studies comparing electric vehicles with gas-powered versions of the same models, HLDI found:
- Fewer claims. EVs had significantly lower claim frequencies under collision and property damage liability coverage than their gas counterparts, and lower frequencies under injury coverages.
- Costlier claims, at least at first. Earlier HLDI studies found EV collision claims tended to cost more on average. That difference narrowed over time, and in a later update the collision difference was no longer statistically significant.
- Mileage explains only part of it. The EVs studied were driven fewer miles per day, but their lower claim frequencies remained after adjusting for mileage.
These studies compared specific model pairs. Results for high-performance or luxury EVs without gas counterparts can differ, and insurers set prices using their own data.
What drives EV repair costs
- Battery packs. The battery is one of the most expensive parts of an EV. Damage to the pack or its protective housing can lead to costly repairs or, in some cases, a total loss.
- Sensors and driver assistance systems. Many EVs carry cameras and radar in bumpers and windshields. IIHS-HLDI research found that crash avoidance features cut how often claims happen but raise the cost of each collision repair.
- Specialized labor and shops. High-voltage systems require trained technicians and equipment, which not every body shop has.
- Parts availability. Newer models can have longer waits for parts, which can increase rental costs during repairs.
- Materials. Aluminum and other lightweight structures can be more expensive to repair than steel.
How the battery is covered
Collision and comprehensive cover the battery the same way they cover the rest of the car: when it's damaged in a crash, by fire, flood, theft or another covered event. They don't cover gradual loss of battery capacity or mechanical failure, which falls under the manufacturer's warranty or a service contract. After a flood or a serious crash, an insurer may declare an EV a total loss if the battery's condition can't be confirmed as safe, since the battery can be a large share of the car's value.
Charging equipment and other EV coverage questions
- Home chargers. A charger installed at your home is generally treated as part of the home or your personal property, so homeowners or renters insurance is usually where it's covered. Confirm with your home insurer; our home insurance estimator can help with that side of the budget.
- Portable charging cables kept in the car may or may not count as part of the vehicle under your auto policy. Ask your insurer.
- Roadside assistance. Check whether it includes towing to a charger if the battery runs out, and whether it uses flatbed towing, which many EVs require.
- Original manufacturer parts. Some drivers add an endorsement so repairs use original parts.
- Rental reimbursement. Longer repair times make adequate rental limits more important.
What about hybrids and plug-in hybrids?
Hybrids and plug-in hybrids share some cost factors with EVs, such as battery packs and electronic systems, but usually with smaller batteries. NAIC notes that hybrid engines are among the special features that can raise rates. As with EVs, the specific model, its repair costs and its safety record matter more than the label. Compare quotes for the exact trim you're considering.
Plug-in hybrids also raise the same practical questions as EVs: whether roadside assistance can help with a depleted battery, whether home charging equipment is covered under your home policy, and whether local body shops are trained to work on high-voltage systems. Ask these questions before you buy, not after the first claim.
Ways to manage the cost of insuring an EV
- Get quotes before you buy. Premiums can differ a lot between EV models and trims.
- Check safety ratings. Strong IIHS and NHTSA ratings and effective crash avoidance features can reduce injury and liability claims.
- Choose deductibles carefully. A higher collision deductible can offset some of the higher physical damage premium. Test options with the deductible vs. premium calculator.
- Ask about discounts, including for safety features, low mileage, telematics or alternative fuel vehicles where offered.
- Consider gap coverage if you financed with a small down payment, since newer vehicles can lose value quickly. See gap insurance.
Questions to ask insurers about an EV
- How does this specific model's premium compare with similar gas and hybrid models?
- Is the battery covered the same way as the rest of the car?
- Do you have repair shops certified to work on this vehicle near me?
- Does roadside assistance include flatbed towing and towing to a charger?
- Are charging cables and adapters covered when stored in the car?
Use the premium estimator for a baseline before you compare quotes.
Frequently asked questions
Why is insurance more expensive for electric cars?
Mainly because repairs can cost more. Battery packs, sensors, specialized labor and parts availability raise the cost of collision and comprehensive claims, even though HLDI data shows EVs tend to have fewer claims.
Are electric cars in more accidents?
HLDI studies comparing EVs with gas-powered versions of the same models found EVs had lower claim frequencies for collision and property damage liability, even after adjusting for mileage.
Does car insurance cover EV battery damage?
Collision and comprehensive cover battery damage from covered events like crashes, fire, flood or theft. Gradual capacity loss or mechanical failure is typically a warranty issue, not an insurance claim.
Does my auto policy cover my home EV charger?
Usually not. A charger installed at your home is generally covered under homeowners or renters insurance. Check both policies.
Are hybrids more expensive to insure?
They can be. NAIC notes that hybrid engines are among features that can raise rates, but the specific model's repair costs and safety record matter most.
Related guides
- How Car Insurance Rates Are Calculated: The Rating Factors Explained
- Comprehensive vs. Collision: What Each Covers and What They Don't
- Gap Insurance: How It Works, What It Covers and When It's Worth It
- Car Insurance Deductibles: How to Choose Between $500, $1,000 and More
- How Much Is Car Insurance? Average Costs and What Drives Them
How we estimate this
This guide explains general rules and practices. Insurance terms vary by state, insurer and policy — check your policy documents and your state insurance department for the rules that apply to you. For cost estimates, try our calculators. Read the full methodology.