The hidden cost of owning an EV: Expensive insurance
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- Insurify reports the average annual EV insurance premium is $3,159, roughly $1,000 higher than for ICE vehicles, reflecting a 42% premium gap.
- Washington D.C. tops the state ranking with EV coverage at $6,394 versus $4,124 for ICE cars, while Maine is the cheapest at $1,476, only $184 above conventional rates.
- Tesla EVs often exceed $4,000 in yearly premiums, a pattern shared by other luxury brands such as Mercedes‑Benz and Audi, whereas Lemonade, Root, and GEICO offer the most affordable EV policies.
- Ryan Mandell of Mitchell says EV repairs cost about 15% more than ICE repairs, citing expensive batteries and complex electronics as key drivers.
- Ford Lightning required extra front‑end reinforcement that adds roughly 30% to repair costs compared with the gasoline F‑150, because the electric model lacks an engine to absorb impact.
Why it matters: EV owners pay $1,000 more per year for insurance, extending the mileage needed to recoup fuel savings by about 5,800 miles annually, while insurers like Lemonade gain market share by offering cheaper EV policies.
