If you’ve been thinking about switching to an electric vehicle, there’s good news and a little headache for your wallet. Electric cars, on average, still cost more to insure than regular gas-powered cars, but trends are shifting, and some insurers are starting to offer lower rates for EV drivers.
All of these combine to make premiums a bit heavier for EV owners compared to drivers of traditional cars.
Where drops are coming
Despite current higher costs, insurers are beginning to adjust:
As EVs become more common, insurers have more data and can price policies more accurately.
Competition is increasing — some companies now offer discounts or usage-based programs specifically for EVs, rewarding safe driving or lower mileage.
Some states and regions provide incentives, sometimes including insurance breaks for EV owners.
So while insurance is still pricier overall, the gap is slowly shrinking. Early adopters may pay more now, but new EV drivers may see better deals, especially if they shop around and look for specialized EV programs.
Electric cars offer huge benefits, lower emissions, and often lower running costs, but insurance is still a bit of a hurdle. That said, with more EVs on the road and insurers adjusting their models, the extra cost may start dropping soon. Smart shoppers, who compare rates and take advantage of discounts, could find insurance that’s not much more than for a conventional vehicle.