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.

Average insurance rates for popular electric cars
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.

Average insurance company rates for popular electric cars
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

Top States for Electric Vehicles

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.

STATES WITH THE BEST ELECTRIC VEHICLE INFRASTRUCTURE
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.

Insurance rates for EVs compared to their gas-powered counterparts
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
STATES WITH THE HIGHEST INTEREST IN ELECTRIC VEHICLES
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.

CITIES WITH THE HIGHEST INTEREST IN ELECTRIC 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:

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