Steep insurance premiums add to the cost of EV ownership, data show

Since the price of buying an electric vehicle is set to the prices and the end of government incentives, drivers who want to go green have another hidden cost to consider before making the change.

Insurance bonuses on electric vehicles are, on average, an enormous 49% higher than that of gas cars, according to new data from the digital insurance platform.

It costs an average of $ 4,058 per year to provide an electric vehicle, compared to $ 2,732 for a traditional vehicle, according to data. Electric cars cost more to replace, are more expensive to repair and are more likely to have problems that cause insurance complaints, according to the report.

The high insurance prices for electric vehicles have come while the American electric vehicle industry is beaten by automotive prices, federal legislation and the expiration of a tax incentive attached to new and used electric vehicles.

“Insurance costs, because they are underway, count, in the long -term calculation, if it costs more or less for a given person to drive an electric vehicle compared to a gas car,” said Julia Taliesin, who wrote the report.

Battery -powered cars cost more to ensure that they have higher prices for stickers, are more easily damaged and require specific parts for repairs, said Taliesin. A winged bell that would be a simple solution on a traditional vehicle could require costly and long repair on an electric vehicle to repair the battery and recalibrate the car and its sensors.

“The cost of what makes up the car and the cost of the workforce to make these repairs, all explain why electric vehicles are more expensive to ensure,” she said.

Insurance prices are even higher in states where there are fewer electric vehicles and fewer mechanisms that can work there, depending on the report. In Arkansas and Idaho, where there are low adoption rates EV, the cost of the complete coverage of an electric vehicle can be almost double that of a traditional car.

In California, it costs 15% to 31% more to ensure an electric vehicle than to ensure a traditional car, according to Insurify. The widespread adoption of the VE in the state reduces prices and gives insurers more data, which allows them to offer lower bonuses, said Taliesin.

“California has been very intentional in terms of infrastructure and incentive to the property of the VE,” said Taliesin. “This leads the nation to adopt electric vehicles, and it has a little effect on the waterfall on a few other things related to insurance costs.”

While federal incentives on electric vehicles decrease in the Trump administration, state programs become increasingly important tools to encourage the adoption of electric vehicles, experts said. The California Air Resources Board requires that all new cars sold in the state by 2035 will be zero emission, an ambitious objective that faces challenges in Washington.

The transition more completely to electric vehicles is vital in the fight against climate change caused by humans, according to experts. However, Gallup’s recent survey data show that fewer Americans are open to the purchase of an EV two years ago. In April, 51% of those questioned said they already owned or planned to buy an EV, down 59% in 2023.

It is easier to ensure an EV now than ten years ago, said Mallory Mooney, sales and services director at Insurify.

“When we started to see electric vehicles, we had trouble placing Teslas for coverage and other specific models that we have seen are annoying for repair,” she said.

The Tesla Model X and Model 3 Top ISS list of the most expensive EVs to insure.

The X model has an average annual cost of $ 4,765 for full coverage, a sharp increase of 36% since last year. The data also shows that model 3 has a complaint frequency rate which is significantly higher than the industry average, which indicates that it may require more frequent repairs.

Most standard insurers offer fonts for electric vehicles, but there are exceptions, even in California, said Mooney. Specialized carriers, including Aspire, Bristol West and National General, who offer policies to high -risk drivers, generally do not cover electric vehicles.

Although electric vehicles tend to cost more to repair, they generally cost less to keep in normal conditions, said Taliesin. Maintenance and gas savings could help compensate for current insurance costs and high price labels on electric vehicles.

“Electric vehicles are more technical and capricious,” she said. “The more there are on the road, the more they should become affordable.”