10 Facts About Insuring Your EV (And How to Save)

INSURANCE - CAR INSURANCE
Discover how to protect your EV without breaking the bank.
Updated April 9, 2024
Fact checked
connector into the electric car

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Are you thinking of making the switch to an electric vehicle? If so, don’t overlook the car insurance implications of that change.

In addition to shopping around to save money on car insurance, there are some things to keep in mind about coverage that might be different for a gas-powered vehicle.

Here are some things you need to know about making the switch.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Electric cars are costlier to insure

malajscy/adobe electric car in street connected with electric source for charge during day time

Although the cost has come down recently, car insurance for electric vehicles is generally more expensive than coverage for gas-powered cars.

Batteries can cost more to replace if you are in an accident, and parts may not be as readily available as they are for popular gas-powered cars.

EVs have a higher sticker price

rh2010/Adobe sales manager selling electric car to a young couple

Electric vehicles typically have a higher sticker price than gas-powered cars, which factors into insurance costs.

Insurance companies must pay more to cover the costs of replacing your vehicle if it crashes. So, these insurers charge you more to cover their costs.

Shopping around helps you find the lowest price

VanderWolf Images/Adobe Volkswagen ID.4 all-electric SUV-coupe car

Whether you are buying an EV or a gas-powered vehicle, shopping around for coverage is one of the best ways to save on car insurance.

Each insurance company sets rates according to its own criteria, so one insurer might be a better fit for your situation than another.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Many auto insurers offer EV insurance

logoboom/Adobe electric cars charging

Many insurance companies now offer coverage for EV owners.

Check with different insurers to see which company offers the best deal. See if your current insurer will switch you to an EV policy and give you a discount for remaining a customer.

Discounts can lower premium costs

Med Photo Studio/Adobe women at electric car charging station

Look for insurance company discounts that can lower your costs. For example, you might get a price break for bundling your car insurance with other types of insurance, such as homeowners coverage.

Some insurers also might lower your costs if you have a good driving record.

You might save if you pay by the mile

Tomasz Zajda/Adobe male worker standing outdoor charging cord of electric vehicle charger

EVs are a great option for drivers who do a lot of local driving rather than long trips out of town. If you're one of these drivers, consider looking at pay-per-mile insurance coverage.

With this type of coverage, you pay a lower initial monthly rate and an additional charge for each mile you drive each month.

Tesla owners may have other options

Aleksei Potov/Adobe tesla model-x electric car

Tesla is one of the best-known manufacturers of electric cars, and the company makes it easy for owners to obtain insurance policies.

You can buy Tesla Insurance through the company’s mobile app. Check around to see if this is your best option for auto insurance.

You can raise your policy’s deductible to save money

lightpoet/Adobe Woman charging electric car in her garage

Increasing your deductible should result in paying lower premiums. Consider this option if you're a good driver and have extra cash in an emergency fund to cover a higher deductible should you need to pay it.

Remember that carrying a higher deductible means paying more out of pocket before your insurance kicks in if you get in an accident.

Some EVs are more expensive to insure than others

Herr Loeffler/Adobe electric car parked

As with gas-powered cars, some EVs are more expensive to cover than others.

Compare insurance rates for different types of EVs that you might be interested in buying. That way, you can see exactly how much your favorite options will cost to insure.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

You can save money other ways as an EV owner

VadimGuzhva/Adobe girl talks the phone on tesla car charge station

You will probably pay more to buy and insure an EV, but there are other ways to save money.

An electric vehicle usually requires less maintenance than a gas-powered car, so you can keep more cash in your wallet when you no longer have to worry about oil changes.

The cost to charge your EV may also be less than filling a gasoline tank. It’s a good idea to check with your electric company about estimated costs for charging your EV, including asking if the price will be lower if you charge during non-peak hours.

Bottom line

rh2010/Adobe salesman with electric car

Electric vehicles aren’t for everyone: There are some things you should consider before buying an EV, including the cost of car insurance.

While you might get a tax credit for buying certain EVs, they're still expensive, and car insurance can be more expensive.

Of course, you will save a lot of money by not having to buy gas. So, if you are trying to get ahead financially, weigh all these factors before deciding whether an EV should be in your future.

Choice Home Warranty Benefits

  • First month free
  • Protection for unexpected expense
  • 24/7 claims hotline
  • Network of over 15,000 technicians

Author Details

Jenny Cohen Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.

Want to learn how to make an extra $200?

Get proven ways to earn extra cash from your phone, computer, & more with Extra.

You will receive emails from FinanceBuzz.com. Unsubscribe at any time. Privacy Policy

  • Vetted side hustles
  • Exclusive offers to save money daily
  • Expert tips to help manage and escape debt