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Electric Vehicles and Auto Insurance: 2025 Reviews and Cost Comparisons
Overview:
In 2025, electric vehicle (EV) insurance is still generally more expensive than for gas-powered cars, but the gap is narrowing as more EVs enter the market and insurers adapt their offerings. On average, insuring a new EV is about 23% more expensive than insuring a comparable gasoline vehicle, primarily due to higher repair costs, specialized parts, and limited repair networks123.
Model | Average Annual Full Coverage Premium | Cheapest Insurers (examples) |
---|---|---|
Tesla Model S | $2,503 | USAA ($1,766), Nationwide ($2,145)4 |
Tesla Model X | $2,427 | State Farm ($1,798), Progressive ($2,011)4 |
Mitsubishi i-MiEV | $1,474 | USAA ($1,117), Liberty Mutual ($1,350)4 |
Nissan Leaf | $1,391 | USAA ($1,158), Nationwide ($1,359)4 |
Chevrolet Bolt | $2,537 | - 2 |
BMW i4 | $3,812 | - 2 |
Ford F-150 Lightning | $2,992 | - 2 |
Volkswagen ID.4 | $2,725 | - 2 |
National average for gas-powered cars: $2,677 (full coverage)2
EVs cost up to $44 more per month than gas vehicles, on average23.
Higher repair and replacement costs: EVs have specialized components (notably batteries) that are expensive to repair or replace13.
Fewer repair shops: Fewer mechanics are certified to work on EVs, leading to higher labor costs and longer repair times13.
Higher vehicle values: Many EVs, especially Teslas and luxury models, have higher MSRPs, increasing the cost to insure42.
Battery replacement: The battery can account for up to half the vehicle’s value, making total losses more costly for insurers3.
Travelers, Progressive, and State Farm are top picks for Tesla and other EV owners, offering competitive rates, flexible coverage, and EV-specific discounts5.
USAA consistently offers the lowest rates for many EVs, but is only available to military members and their families4.
AAA, Travelers, and Mercury are among the few insurers advertising specific EV or hybrid discounts, usually around 5%3.
Nationwide and Liberty Mutual also provide competitive rates for certain EV models4.
EV/Green Vehicle Discount: Not all insurers offer this, but AAA, Travelers, and Mercury do in select states (up to 5% off)3.
Low-Mileage Discount: Many EV owners drive fewer miles, making them eligible for additional savings3.
Bundling Policies: Combine auto with home or renters insurance for up to 25% off3.
Safety Feature Discounts: Advanced safety tech in EVs can lower premiums by up to 23%3.
Shop Around: Rates vary dramatically by company and model—always compare quotes from multiple insurers41.
As EV adoption grows, insurers are developing more tailored products and the cost gap with gas vehicles is expected to continue shrinking1.
Some sources note that for certain models, EV insurance is approaching parity with gas-powered cars, with annual premiums averaging around $1,600 for both6. However, luxury EVs and Teslas remain notably more expensive to insure42.
Summary:
In 2025, insuring an electric vehicle remains pricier than insuring a gas-powered car, especially for luxury and high-performance models. However, the market is evolving, with more insurers offering EV-specific discounts and competitive rates. Travelers, Progressive, State Farm, USAA, and AAA are among the best-reviewed insurers for EV owners. To secure the best rate, compare multiple quotes, ask about all available discounts, and consider your driving habits and vehicle features
© 2025 Created by Yuri Khrushch.
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