As the price of buying an electric vehicle is triggered with tariffs and the end of government incentives, drivers who want to become green have another hidden cost to consider before making the change.
Insurance premiums in electric vehicles are, on average, 49% higher than those of cars with gasoline, according to the new data of the Insurify digital insurance platform.
It costs an average of $ 4,058 annually to ensure an electric vehicle, compared to $ 2,732 for a traditional vehicle, according to the data. Electric cars cost more to replace, are more expensive to repair and are more likely to have problems that lead to insurance claims, according to the report.
High insurance prices for EVs occur when the US electric vehicles industry is being mistreated by automatic tariffs, federal legislation and the expiration of a fiscal incentive attached to new and used electric vehicles.
“Insurance costs, because they are ongoing, are important in the long -term calculation of whether it costs more or less for a certain person to drive an EV versus a car with gasoline,” said Julia Taliesin, who was the author of the report.
Automobiles with batteries cost more to ensure because they have higher stickers, they are damaged more easily and require specific parts for repairs, Taliesin said. A fender double that would be a simple solution in a traditional vehicle may require expensive and long reparation in an EV to repair the battery and recalibrate the car and its sensors.
“The cost of what the car is compensating and the cost of labor to make those repairs, everything is dedicated to why EVs are more expensive to ensure,” he said.
Insurance prices are even higher in states where there are less EVs and less mechanics that can work on them, according to the report. In Arkansas and Idaho, where there are low adoption rates of EV, the cost of total coverage for 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 generalized adoption of EV in the state reduces prices and gives insurers more data, which allows them to offer lower premiums, Taliesin said.
“California has been very intentional about infrastructure and encouraging the property of EV,” Taliesin said. “It leads to the nation in the adoption of EV, and that has a waterfall effect on some other things that are related to insurance costs.”
As Federal EV incentives decrease under the Trump administration, programs at the state level become increasingly important tools to encourage the adoption of EV, experts said. The California Air Resources Board requires that all new cars sold in the state for 2035 be zero broadcasts, 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, experts say. However, the recent data of Gallup surveys show that fewer Americans are open to buy an EV that two years ago. As of April, 51% of respondents said they already owned or were considering buying an EV, below 59% in 2023.
It is easier to ensure an EV now than a decade ago, said Mallory Mooney, sales director and service at Insurify.
“When we started seeing the EVs, we had difficulty placing teslas for coverage and other specific models that we have seen are problematic for repair,” he said.
The Tesla Model X and Model 3 Top Insurify's List of EV most expensive to ensure.
The X model has an average annual cost of $ 4,765 for complete coverage, an acute increase of 36% since last year. The data also show that model 3 has a claims frequency rate that is significantly higher than industry average, indicating that it may require more frequent repairs.
Most standard insurance companies offer policy for electric vehicles, but there are exceptions, even in California, Mooney said. Specialized carriers, including aspire, Bristol West and National National, 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, Taliesin said. Maintenance and gas savings could help compensate for continuous insurance rates and high initial price labels in EVs.
“Electric vehicles are more technical and striking,” he said. “The more there are on the way, the more affordable they should become.”
