It's Still Way More Expensive To Insure An EV. But That's Changing

On average, insurance costs for newer EVs are 18% higher than they are for gas cars.

The average newer EV costs $3,293 to insure on an annual basis.

The overall cost delta has fallen year over year, though.

One of the great pitches for buying an EV is lower total cost of ownership. There are fewer moving parts in them, after all, so that would at least make sense from a maintenance perspective. There are a few hidden costs, though. Higher upfront price for new cars and a steep depreciation curve don't help matters. And there's one big monthly bill folks often forget to account for: insurance.

A new study from Insurify shows that car insurance is one of the biggest cost differentiators between owning a traditional internal combustion-engine (ICE) car and an EV. In fact, the average late-model EV (from 2024 and newer) costs 18% more to insure than the average late-model gas-powered vehicle.