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 networks.

Cost Comparisons: Popular Electric Vehicles (2025)

• National average for gas-powered cars: $2,677 (full coverage)EVs cost up to $44 more per month than gas vehicles, on average.

Why Is EV Insurance More Expensive?

• Higher repair and replacement costs: EVs have specialized components (notably batteries) that are expensive to repair or replace.

• Fewer repair shops: Fewer mechanics are certified to work on EVs, leading to higher labor costs and longer repair times.

• Higher vehicle values: Many EVs, especially Teslas and luxury models, have higher MSRPs, increasing the cost to insure.

• Battery replacement: The battery can account for up to half the vehicle’s value, making total losses more costly for insurers.

Best Auto Insurance Companies for EVs (2025 Reviews)

• Travelers, Progressive, and State Farm are top picks for Tesla and other EV owners, offering competitive rates, flexible coverage, and EV-specific discounts.

• USAA consistently offers the lowest rates for many EVs, but is only available to military members and their families.

• AAA, Travelers, and Mercury are among the few insurers advertising specific EV or hybrid discounts, usually around 5%.

• Nationwide and Liberty Mutual also provide competitive rates for certain EV models.

Discounts and Savings Tips

• EV/Green Vehicle Discount: Not all insurers offer this, but AAA, Travelers, and Mercury do in select states (up to 5% off).

• Low-Mileage Discount: Many EV owners drive fewer miles, making them eligible for additional savings.

• Bundling Policies: Combine auto with home or renters insurance for up to 25% off.

• Safety Feature Discounts: Advanced safety tech in EVs can lower premiums by up to 23%.

• Shop Around: Rates vary dramatically by company and model—always compare quotes from multiple insurers.

Trends and Outlook

• As EV adoption grows, insurers are developing more tailored products and the cost gap with gas vehicles is expected to continue shrinking.

• Some sources note that for certain models, EV insurance is approaching parity with gas-powered cars, with annual premiums averaging around $1,600 for both. However, luxury EVs and Teslas remain notably more expensive to insure.

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