Best Insurance for Electric Vehicles [2025] : Does It Cost More To Insure an EV?

While buying a new electric vehicle (EV) can be exciting, discovering the cost of insuring an EV may come as a surprise. In general, electric cars are more expensive to insure than gasoline-powered cars because they are more costly to repair or replace. The cost of insurance also depends on the type of electric vehicle you have as well as other factors.

There isn't much average insurance cost data for electric vehicle drivers, but comparing the average pricing for all vehicles can be a good starting point as you research insurance companies.

During our search for the best insurance for electric cars, we found that while insurance coverages are generally the same for electric or gasoline cars, some companies offer discounts specific to electric car owners.

USAA, for example, advertises coverage for electric vehicle batteries. Similarly, Liberty Mutual may offer a discount to electric or hybrid vehicle owners, although you'll need to call them to confirm.

Other companies, like State Farm, Nationwide, Progressive, and Geico, don't have specific savings for electric vehicles but offer discounts on vehicle safety features or for purchasing a new car (including electric).

How we evaluate products

Company name	Best for	Average monthly full coverage cost	Average monthly liability-only cost
Progressive	High-risk drivers	$171	$105
GEICO	Policy options	$142	$111
Liberty Mutual	Discounts	$246	$178
Nationwide	Policy perks	$181	$90
State Farm	Competitive rates	$116	$55
USAA	Military	$99	$50

Progressive

Best for high-risk drivers

Company details

AM Best: A+
J.D. Power claims satisfaction: 672 out of 1,000
BBB: A+
NAIC complaints: 0.98 (Private Passenger)

Drivers with a clean record who use Progressive generally pay an average of $105 per month for liability-only insurance and $171 per month for full coverage.

However, Progressive can be helpful to drivers with DUIs or other high-risk convictions. That's because Progressive can provide SR-22 forms, which help you prove that you have at least the minimum car insurance limits set by your state. Either the courts or your state may require you to submit an SR-22 form. However, not every insurance company offers this service.

Progressive earned 672 out of 1,000 in J.D. Power's 2024 Claims Satisfaction survey, the second lowest rating of the entire survey. However, it received fewer than expected complaints for a company of its size, according to the National Association of Insurance Commissioners (NAIC).

Pros

Available in all 50 states
Multiple policy options
User-friendly mobile app

Cons

Progressive may cost more than other companies
Low claims satisfaction scores
No specific electric vehicle discounts

Learn more in our Progressive review.

GEICO

Best policy options

Company details

AM Best: A++
J.D. Power claims satisfaction: 692 out of 1,000
BBB: A+
NAIC complaints: 0.75 (Private Passenger)

GEICO is available nationwide and offers multiple policy options, including mechanical breakdown coverage, which may help cover the costs of repairing or replacing a battery in an electric vehicle, provided your vehicle's warranty doesn't cover the entire bill. However, it doesn't offer a specific discount or coverage for electric cars.

GEICO does offer discounts for vehicle safety features and has a program called DriveEasy, which may help you save more on car insurance if you're a safe driver. It generally provides competitive rates for drivers with a clean record with an average monthly cost of $142 for full coverage and $111 for liability-only coverage.

The NAIC Complaint Index gave GEICO a score of 0.75. Any score under 1.00 indicates that a company has a fewer-than-expected number of complaints, so GEICO is well under that threshold. However, it earned below-average claims satisfaction scores from J.D. Power's 2024 survey, earning 692 out of 1,000. The survey average was 697.

Pros

Available in all 50 states
High financial stability ratings
Multiple coverage options, including emergency roadside service

Cons

Below-average claims satisfaction scores from J.D. Power
The DriveEasy program is not available in all states
Does not offer GAP insurance

Learn more in our GEICO review.

Liberty Mutual

Best for discounts

Company details

AM Best: A
J.D. Power claims satisfaction: 717 out of 1,000
BBB: A-
NAIC complaints: 4.28 (Private Passenger)

Liberty Mutual typically offers fewer coverage options than some other carriers. Still, it provides a good range of discounts, including for being a claims-free driver or completing a quote online. It also provides discounts for military members, good students, and homeowners, among others.

It may offer a discount for driving a hybrid vehicle if you're a member of one of its affinity partners. However, you'll need to contact Liberty Mutual directly to see if the discount is available and if you qualify.

Liberty Mutual is generally a more expensive option for car insurance, even if you don't drive an electric car. Liability coverage at Liberty Mutual costs an average of $178 per month for drivers with a clean record, and full coverage averages $246 per month.

Additionally, Liberty Mutual earned a score of 4.28 on the NAIC 2024 Complaint Index, more than four times the expected number of complaints for a company its size. However, it earned above-average claims satisfaction scores from J.D. Power's 2024 survey.

Pros

Generally offers more discounts
Offers GAP coverage
Above-average claim satisfaction scores from J.D. Power

Cons

More expensive coverage than some competitor
Very high complaint score on the NAIC Complaint Index
Fewer coverage options than some competitors

Learn more in our Liberty Mutual review.

Get Custom Quotes Today

Safe Drivers Save with Allstate®

Average Rate:

$ $$ /mo

Get rewarded with savings for having a clean driving record.

Paying too much for car insurance?

Average Rate:

$ $$ /mo

Car insurance can be so simple. And so affordable.

GEICO

The insurance savings you expect.

Average Rate:

$ $$ /mo

Enjoy personalized policies, comprehensive coverage & more.

See how much you could save today!

Average Rate:

$ $$ /mo

Drivers who switch their auto insurance and save with State Farm save $764 on average!

Nationwide

Best policy perks

Company details

AM Best: A
J.D. Power claims satisfaction: 728 out of 1,000
BBB: A+
NAIC complaints: 0.39 (Private Passenger)

Nationwide typically offers multiple coverage options, including some specialty policies like GAP and rental car coverage, which can be helpful add-ons if your new electric car is totaled in an accident.

Nationwide generally offers competitive rates with liability coverage averaging $90 per month and full coverage averaging $181 per month. I especially appreciate that it also provides several policy perks, including key fob replacement, pet protection, and access to an auto repair network as part of its standard coverage.

I'm impressed that it earned a 0.39 on the NAIC 2024 Complaint Index, which is significantly lower than many other insurance companies, indicating that Nationwide prioritizes its customers' experience. It also earned a relatively high score of 728 out of 1,000 in J.D. Power's claim satisfaction survey.

Pros

Multiple specialty coverage options
Driver perks include fender bender forgiveness and lockout services
High claims satisfaction scores

Cons

Not available nationwide
It may be more expensive than some competitors
Limited discount options

Learn more in our Nationwide review.

State Farm

Best for competitive rates

Company details

AM Best: A++
J.D. Power claims satisfaction: 710 out of 1,000
BBB: F
NAIC complaints: 0.84 (Private Passenger)

State Farm generally has affordable coverage and is available in every state except Massachusetts and Rhode Island. The average monthly cost for full coverage is $225 while liability-only coverage costs $122 per month. However, it doesn't have electric vehicle-specific policies or discounts.

Despite that, it's still worth considering because it offers more ways to save money on car insurance than many other companies. It's especially beneficial for families with young drivers as it provides multiple discounts specifically designed to lower the premiums for teens and college students. EV drivers can also find savings through the Drive Safe and Save telematics program or by bundling multiple policies.

You need to work with an agent to obtain a quote and start a policy, which can provide an opportunity to inquire about any additional discounts that may be available. It earned an A++ rating from AM Best, indicating it is financially solid, and it received an above-average score of 710 out of 1,000 on the J.D. Power Customer Satisfaction survey.

Pros

High claim satisfaction scores
Available nationwide except in Massachusetts and Rhode Island
Offers numerous discounts, especially for new drivers

Cons

Does not offer GAP insurance
No specific hybrid or electric vehicle discounts or policies
You must use an agent to get a quote

Learn more in our State Farm review.

Save On Your Auto Insurance

You could save up to $600 with some companies.
Compare dozens of providers in under 5 minutes.
Fast, free, and easy way to shop for insurance.
Quickly find the perfect rate for you.

Average rate:

$ $$ /mo

USAA

Best for military members

Company details

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 726 out of 1,000
BBB: A+
NAIC complaints: 0.97 (Private Passenger)

USAA's car insurance is generally the most affordable for both standard and electric vehicles. Liability-only coverage for drivers with a clean record averages $50 per month, and full coverage averages$99 per month. However, USAA policies are only available to current military members, veterans, and their immediate family members.

It earned high claims satisfaction scores and had a lower-than-expected complaint rate, according to the NAIC complaint index.

If you qualify, USAA can be a great option for electric vehicle drivers because it offers specific coverage for the car's battery, which is often one of the most expensive things to repair or replace. It also has military-specific discounts, including for storing your vehicle during deployment.

Pros

Generally offers affordable coverage
Specific discounts for military members
High claims satisfaction scores

Cons

Only available to the military or immediate family members
Some competitors have more discounts
Does not offer GAP insurance

Learn more in our USAA review.

What factors affect the cost of insurance for my electric vehicle?

Insurance companies typically offer the same coverage for gasoline cars as they do electric vehicles. However, you may find that you pay more for insurance on an electric vehicle due to factors like:

Higher Prices: Electric vehicles typically have a higher purchase price than standard vehicles. Since they are more expensive to purchase, they also incur higher replacement costs.
The cost of parts and labor: The type of battery in the car and the cost of replacement can contribute to your insurance costs as can other specialty parts. Also, fewer qualified mechanics working on EVs means that labor is likely more expensive as well.

Additionally, several other factors can affect the cost of car insurance, no matter the type of car you drive, such as:

Age, gender, and marital status
Where you live
The number of vehicles on a policy
The driving record of everyone on the policy
Your policy coverages and limits
Your deductible
Your credit score (if your state allows its use)
How many miles you drive each month
The discounts you qualify for
The insurance company you select

One of the best things you can do when you're looking for ways to lower car insurance costs is to maintain a safe driving record. Not only do many insurance companies offer a discount for avoiding at-fault accidents, but your driving record also contributes to how much your premiums cost overall.

Also, compare quotes from at least three companies. That way, you can compare companies, policy options, deductibles, and benefits side by side.

FAQs

Do electric cars cost more to insure?

In general, electric cars are more expensive to insure because they are more costly to repair or replace. Both parts and labor typically cost more for electric vehicles, and it can be more challenging to find a mechanic who is knowledgeable about their repair.

What is the most expensive electric car to insure?

In general, the more expensive an electric vehicle is to purchase, the more expensive it will be to insure. This is often because the initial purchase price contributes to the insurance company's calculations as well as the cost of repairing a luxury electric vehicle. Parts and labor for electric vehicles generally cost more than those for traditional gasoline cars, which can influence your insurance premium.

With that said, currently the top five most expensive electric vehicles to insure are:

Mercedes-AMG EQS
Audi e-tron GT
BMW i7
Tesla Model S
Porsche Taycan

What is the least expensive electric car to insure?

The Nissan Leaf may be one of the least expensive electric cars to insure as it is one of the most affordable electric vehicles and boasts high safety ratings. However, multiple factors contribute to the cost of car insurance, including your age, gender, driving record, and the types of coverage you have on the vehicle.

Smart Drivers, Smarter Savings

Virginia: Say Goodbye to High Auto Insurance Rates if You Live in These Zip Codes

See if you qualify for a lower rate in less than 2 minutes

Start Saving Arrow right icon

By clicking the button above, I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Bottom line

Taking the time to find the right insurance for your new electric car can help you ensure you have the best coverage at the best price.

As you search for the best car insurance, obtain at least three quotes and inquire about any special deals or coverages offered for electric vehicles. Read customer service reviews and complaints to help you find not only the best policy but the best company.

Save On Your Auto Insurance

You could save up to $600 with some companies.
Compare dozens of providers in under 5 minutes.
Fast, free, and easy way to shop for insurance.
Quickly find the perfect rate for you.

Average rate:

$ $$ /mo

Author Details

Kate Daugherty

Kate Daugherty is a writer for FinanceBuzz with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.