Several factors have converged to fuel the ongoing surge in electric car sales. If you are considering one yourself, you may be relieved to know that many perceived barriers to electric car ownership are falling by the wayside. Charging stations are becoming more prevalent. Government incentives are defraying the costs of purchasing them. And car insurance rates for electric cars are falling in line with those for gas-powered vehicles.
As you weigh your options, here’s what you need to know about how the infrastructure and insurance rates for electric vehicles are making them easier to own than ever before.
In this article:
How much does electric car insurance cost?
The average cost of car insurance for a brand new electric car is $240 a month, based on our analysis of full-coverage rates available for eight popular models. The prices range from $189 a month for a Nissan Leaf S to $388 a month for an Audi Q4 e-tron.
| Model | Monthly rate |
|---|---|
| Hyundai Kona SEL | $189 |
| Kia Niro EV EX | $195 |
| VW ID.4 Pro | $208 |
| Ford Mustang Mach E Select | $212 |
| Nissan Leaf S | $213 |
| Chevy Bolt 1LT | $215 |
| EV Average | $240 |
| Tesla Model 3 | $302 |
| Audi Q4 e-tron | $388 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Full-coverage car insurance includes liability, collision and comprehensive coverage. Liability is required by law in almost every state, while collision and comprehensive are typically required for car loans and leased vehicles.
The price, or value, of any vehicle is one of the more significant factors that insurance companies use to determine the cost of insuring it. However, insurance companies also analyze the accident frequency and repair costs of each model to determine which cars are riskier, or more expensive, to insure.
Among our findings:
- The Audi Q4 e-tron, with a Manufacturers’ Suggested Retail Price (MSRP) of $48,800, is the most expensive electric car in our analysis to purchase and insure.
- Even though the Hyundai Kona is cheapest to insure, its $39,900 MSRP makes it more expensive than the Nissan Leaf, $27,800, and Chevy Bolt, $32,495.
Which companies sell electric car insurance?
Most insurance companies that sell car insurance for gasoline-powered vehicles also offer insurance for electric vehicles. This includes the nation’s largest carriers, such as State Farm and GEICO, as well as regional carriers and most local Farm Bureau affiliates.
Tesla Insurance is also available to Tesla owners in a growing number of states, including Illinois, Ohio and Texas. Tesla Insurance accesses information about the way you drive directly from your vehicle and gives you a discount if you achieve or maintain a high enough “safety score.”
Electric car insurance cost by insurer
Among the companies in our analysis, Erie Insurance offers the cheapest car insurance for electric cars, with rates averaging $117 a month. Erie operates in 12 states between the East Coast and the Midwest.
The next-best insurance rates for EVs are available from Progressive, $185 a month, and GEICO, $190 a month.
| Company | Monthly rate |
|---|---|
| Erie | $114 |
| Progressive | $172 |
| GEICO | $190 |
| Nationwide | $290 |
| Allstate | $321 |
| State Farm | $327 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Top states for electric vehicle infrastructure
The U.S. Department of Transportation is investing heavily in electric vehicles (EV). Over the next five years, the government will spend more than $5 billion to bring EV charging stations to all 50 states. Some states, though, have already developed an extensive EV infrastructure.
We looked at each state’s number of electric vehicles, charging outlets, alternative fuel stations and EV incentives to determine the top states for electric vehicle infrastructure. We found that California leads the way when it comes to electric vehicles. The Golden State has 40% of all electric vehicles on the road, 33% of all charging outlets and nearly three times as many EV incentives as any other state.
Other states have been slower to embrace electric vehicles. Louisiana, Kentucky, Alabama and other southern states have the lowest number of charging outlets, fuel stations and EV incentives in the nation.
| Rank | State | EV adoption rate | Alternative fueling stations per 10K vehicles | Electric charging outlets per 10K vehicles | # of government incentives |
|---|---|---|---|---|---|
| 1 | California | 3.81% | 11 | 29 | 116 |
| 2 | Colorado | 2.21% | 12 | 26 | 32 |
| 3 | New York | 1.21% | 8 | 22 | 48 |
| 4 | Vermont | 1.71% | 18 | 46 | 18 |
| 5 | Maryland | 1.39% | 8 | 21 | 27 |
| 6 | Massachusetts | 1.50% | 12 | 28 | 20 |
| 7 | Washington | 2.33% | 7 | 16 | 26 |
| 8 | Oregon | 2.06% | 8 | 17 | 22 |
| 9 | Utah | 1.79% | 9 | 20 | 17 |
| 10 | Hawaii | 2.91% | 9 | 19 | 6 |
| 11 | Minnesota | 0.81% | 7 | 8 | 26 |
| 12 | Maine | 0.85% | 12 | 24 | 9 |
| 13 | Arizona | 1.66% | 5 | 11 | 21 |
| 14 | Virginia | 0.99% | 5 | 12 | 22 |
| 15 | Michigan | 0.64% | 5 | 10 | 30 |
| 16 | Connecticut | 1.09% | 5 | 13 | 14 |
| 17 | Nevada | 1.66% | 5 | 16 | 11 |
| 18 | New Jersey | 1.85% | 4 | 10 | 21 |
| 19 | Rhode Island | 0.66% | 8 | 20 | 10 |
| 20 | Kansas | 0.50% | 7 | 12 | 17 |
| 21 | North Carolina | 0.74% | 4 | 9 | 22 |
| 22 | Florida | 1.20% | 4 | 10 | 18 |
| 23 | Oklahoma | 0.58% | 5 | 9 | 18 |
| 24 | Georgia | 0.96% | 5 | 12 | 9 |
| 25 | New Mexico | 0.66% | 5 | 8 | 21 |
| 26 | Illinois | 0.87% | 4 | 8 | 18 |
| 27 | Missouri | 0.50% | 6 | 11 | 12 |
| 28 | Texas | 0.99% | 4 | 8 | 21 |
| 29 | Pennsylvania | 0.66% | 4 | 8 | 21 |
| 30 | New Hampshire | 0.86% | 5 | 10 | 8 |
| 31 | Delaware | 0.72% | 4 | 9 | 13 |
| 32 | Iowa | 0.31% | 8 | 6 | 14 |
| 33 | Nebraska | 0.43% | 6 | 7 | 13 |
| 34 | Wisconsin | 0.49% | 4 | 6 | 22 |
| 35 | Wyoming | 0.27% | 6 | 11 | 8 |
| 36 | North Dakota | 0.18% | 7 | 8 | 12 |
| 37 | Indiana | 0.49% | 3 | 5 | 25 |
| 38 | Tennessee | 0.57% | 4 | 8 | 9 |
| 39 | South Dakota | 0.21% | 5 | 5 | 11 |
| 40 | Alaska | 0.75% | 4 | 7 | 6 |
| 41 | Idaho | 0.59% | 3 | 6 | 9 |
| 42 | Ohio | 0.50% | 4 | 7 | 9 |
| 43 | South Carolina | 0.42% | 3 | 6 | 13 |
| 44 | Arkansas | 0.27% | 4 | 7 | 5 |
| 45 | Montana | 0.36% | 3 | 5 | 10 |
| 46 | West Virginia | 0.20% | 4 | 8 | 6 |
| 47 | Alabama | 0.23% | 2 | 4 | 11 |
| 48 | Mississippi | 0.17% | 3 | 6 | 8 |
| 49 | Kentucky | 0.26% | 2 | 4 | 7 |
| 50 | Louisiana | 0.24% | 2 | 4 | 7 |
| Methodology: States were evaluated based on EV registrations, fueling and charging stations per 10,000 registered drivers and EV incentives listed in the National Renewable Energy Laboratory (NREL) database of government incentives by state. States were then ranked based on a composite score of the factors evaluated. | |||||
Do electric vehicles cost more to insure?
As more drivers take to the roads in electric vehicles, the cost of insuring them has become comparable to car insurance for gas-powered vehicles. When all other rate factors are the same, our research shows that a vehicle’s value plays a larger role in determining its price than its fuel source.
For example, the average cost of car insurance for an electric Kia Niro is only about $40 more per year than a gas-powered version of the same car. Insurance for an electric Hyundai Kona SEL is only about $4 more per year than it is for a gas-powered Kona SEL.
The sophisticated technology behind most EVs’ batteries, electronic systems and body materials generally make them more expensive to purchase and repair than their gas-powered counterparts.
Nevertheless, the insurance rates we reviewed for electric vehicles were generally comparable to the insurance rates available to comparably priced gas-powered vehicles.
One exception is Audi’s Q4 e-tron, which costs about $1,200 more a year to insure than an Audi Q5, its closest sibling in the manufacturer’s family.
| EV model | Annual EV rate | Annual gas-car rate |
|---|---|---|
| Hyundai Kona SEL | $2,269 | $2,265 |
| Kia Niro EV EX | $2,334 | $2,295 |
| Ford Mustang Mach E Select | $2,542 | $2,733 |
| Audi Q4 e-tron Premium | $4,653 | $3,413 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Benefits of owning an electric vehicle
There are currently 73 federal incentives to purchase electric cars, which includes grants, tax breaks, loans and leases, rebates, credits, exemptions and other programs in the country. Nationally, around 980 state-funded incentives exist. California has the most, with 116 state incentives (48 more than second-ranked New York).
The hope is that more incentives toward manufacturers and consumers will persuade Americans to swap out older, environmentally unfriendly and less-efficient vehicles for more energy- and consumer-efficient options. According to our findings, states that offer the most EV incentives generally have the highest adoption rates.
States with the highest interest in alternative fuel vehicles
Infrastructure takes time to build, but demand can change quickly. We found that demand for electric vehicles rose by 48% from 2021 to 2022, and then dropped by 27% from 2022 to 2023.
The demand for electric vehicles has risen the fastest in smaller, more rural states. In just one year, electric vehicle interest rose by as much as 65% in West Virginia, New Mexico and Vermont. Search interest in electric vehicles has decreased in 14 states. North Dakota saw the biggest decrease in demand for alternative fuel vehicles, at 53%.
"We’re seeing the popularity of EVs continue to surge for several reasons. More charging stations help, and so do lower price points. Many of the newer models are also stylish and fun to drive, so, as a consumer, you don’t have to give up some of the things you may love about gas-powered cars to go electric." - Rob Bhatt, Insurance Expert
| State | % change in demand 2022-2023 |
|---|---|
| West Virginia | 65% |
| New Mexico | 53% |
| Vermont | 24% |
| Kentucky | 23% |
| Wisconsin | 19% |
| Louisiana | 18% |
| Nebraska | 18% |
| Utah | 18% |
| Minnesota | 16% |
| Colorado | 16% |
| Texas | 15% |
| Maine | 14% |
| Oregon | 13% |
| Iowa | 13% |
| Pennsylvania | 12% |
| Nevada | 12% |
| Kansas | 12% |
| Arizona | 11% |
| Oklahoma | 11% |
| Illinois | 11% |
| Indiana | 11% |
| Michigan | 10% |
| Ohio | 9% |
| Washington | 9% |
| Virginia | 9% |
| Missouri | 7% |
| California | 7% |
| Montana | 7% |
| Massachusetts | 6% |
| Idaho | 5% |
| Tennessee | 5% |
| Georgia | 3% |
| Florida | 2% |
| North Carolina | 2% |
| Arkansas | 0% |
| Hawaii | 0% |
| Connecticut | -2% |
| New Jersey | -3% |
| Rhode Island | -6% |
| New York | -6% |
| Maryland | -8% |
| New Hampshire | -8% |
| Mississippi | -14% |
| South Carolina | -16% |
| Alabama | -22% |
| Wyoming | -37% |
| Delaware | -43% |
| South Dakota | -46% |
| Alaska | -52% |
| North Dakota | -53% |
| Methodology: Data is sourced from Google analytics with a date range of March 2022 - March 2023. | |
Certain cities have also experienced dramatic changes in their demand for electric vehicles. San Diego, Albuquerque, N.M., and Seattle have the highest demand for alternative fuel vehicles.
| Rank | City | Average search index average |
|---|---|---|
| 1 | San Diego | 81 |
| 2 | Albuquerque-Santa Fe, N.M. | 74 |
| 3 | Seattle-Tacoma | 71 |
| 4 | Denver | 70 |
| 5 | Detroit | 70 |
| 6 | Sacramento-Stockton-Modesto, Calif. | 70 |
| 7 | Phoenix | 70 |
| 8 | San Francisco-Oakland-San Jose | 70 |
| 9 | Portland, Ore. | 69 |
| 10 | Minneapolis-St. Paul | 68 |
| 11 | Fresno-Visalia, Calif. | 67 |
| 12 | Salt Lake City | 64 |
| 13 | Grand Rapids-Kalamazoo-Battle Creek, Mich. | 62 |
| 14 | Austin, Texas | 61 |
| 15 | Harrisburg-Lancaster-Lebanon-York, Pa. | 60 |
| 16 | Washington, D.C. (Hagerstown, Md.) | 60 |
| 17 | Honolulu | 59 |
| 18 | St. Louis | 57 |
| 19 | Los Angeles | 55 |
| 20 | Raleigh-Durham (Fayetteville), N.C. | 55 |
| 21 | Las Vegas | 53 |
| 22 | Albany-Schenectady-Troy, N.Y. | 53 |
| 23 | Buffalo, N.Y. | 51 |
| 24 | Indianapolis | 51 |
| 25 | Cheyenne, Wyo.-Scottsbluff, Neb. | 50 |
| 26 | Pittsburgh | 50 |
| 27 | Boston-Manchester, N.H. | 49 |
| 28 | Hartford and New Haven, Conn. | 49 |
| 29 | Baltimore | 48 |
| 30 | Cincinnati | 48 |
| 31 | Tampa-St. Petersburg (Sarasota), Fla. | 48 |
| 32 | Norfolk-Portsmouth-Newport News, Va. | 48 |
| 33 | West Palm Beach-Ft. Pierce, Fla. | 48 |
| 34 | Nashville, Tenn. | 46 |
| 35 | Providence, R.I.-New Bedford, Mass. | 46 |
| 36 | San Antonio | 45 |
| 37 | Chicago | 44 |
| 38 | Columbus, Ohio | 44 |
| 39 | Milwaukee | 44 |
| 40 | Orlando-Daytona Beach-Melbourne, Fla. | 44 |
| 41 | Jacksonville, Fla. | 43 |
| 42 | Bend, Ore. | 42 |
| 43 | Atlanta | 41 |
| 44 | Greenville-Spartanburg, S.C.-Asheville, N.C.-Anderson, S.C. | 41 |
| 45 | Charlotte, N.C. | 41 |
| 46 | Burlington, Vt.-Plattsburgh, N.Y. | 40 |
| 47 | Dallas-Ft. Worth | 40 |
| 48 | Philadelphia | 40 |
| 49 | Montgomery (Selma), Ala. | 39 |
| 50 | New Orleans | 38 |
| Methodology: Data is sourced from Google analytics with a date range of March 2022 - March 2023. Search index number is rounded to the nearest whole number. The max search index score is 100 with higher numbers indicating a greater proportionate search interest for that area. Data for some states is not available. | ||
How to save on electric car insurance
In addition to the usual steps for saving money on car insurance, such as comparing quotes and seeking discounts, choosing an electric car with high safety ratings may also help you nab a cheaper rate.
Granted, safety ratings alone don’t determine the price of insurance for any particular vehicle.
However, a car designated as a Top Safety Pick from the Insurance Institute of Highway Safety (IIHS), for example, is likely to emerge from an accident with less severe damage and passenger injuries than one without such a rating. This generally makes it cheaper to insure.
The Volvo EX40 Recharge, Audi e-tron and Tesla Model 3 are among the electric cars that have earned the Top Safety Pick + award, the IIHS’s highest designation, in recent years.
You can typically also keep your insurance rates low by maintaining a clean driving record and avoiding at-fault accidents. Since insurance companies in most states include your credit-based insurance score among their rate factors, paying your bills on time is also likely to help.
Methodology
Electric- and gas-car insurance rate comparisons are based on non-binding quotes obtained through Quadrant Information Services for a typical driver in Ohio. For our analysis, a typical driver is a 35-year-old male who drives 13,500 miles a year and has no prior accidents or traffic violations.
Full-coverage insurance includes the following coverages, limits and deductibles:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $100,000
- Collision coverage: $500 deductible
- Comprehensive coverage: $500 deductible
References:
QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.