by Overall Picture of Insurance Costs
The price difference between internal combustion engine cars and their electric counterparts continues to shrink, but an EV will still hit the wallet harder than a gasoline model at the dealership. Expenses do not end there. According to a new Insurify study, insuring an EV also costs significantly more.
Currently, the average cost of insuring an electric vehicle in the US is a staggering $3,159. While this is well below the peak of $3,509 in March of last year, this amount still far exceeds the average annual insurance cost for a gasoline car, which currently stands at $2,218. The difference reaches 42 percent. However, when you delve deeper into the data, the gap begins to narrow.
Vehicle Age and Its Impact on Premiums
The average EV on US roads is significantly newer than the average ICE car, simply because electric cars have not been around as long. Insurify estimates the average age of vehicles in its database at 11.5 years, with older gasoline models lowering the overall figure.
Therefore, it is not surprising that a typical EV costs more to insure than its gasoline counterpart. The gap narrows sharply to 18 percent when comparing 2024 model year and newer vehicles of all types. In this case, the average premium is $3,293 for an EV versus $2,792 for a gasoline alternative.
Regional Differences in Cost
Insurance premiums vary significantly depending on where you live. Insurify’s analysis, covering over 235 million insurance quotes, shows that in some states, the difference between insuring a new EV (2024 model year or newer) and a comparable ICE car can reach 50 percent.
Washington, D.C., is the most expensive location in the study: the average insurance cost for new EVs is $6,102, while for new gasoline cars it is $4,821.
EV owners in Massachusetts also feel the financial pressure. Although the average annual premium for a new EV is $3,560, for a new ICE car it is only $2,318, making a gasoline car cheaper by 54 percent. Insurify cites the dense urban environment, more expensive vehicles, and higher repair costs for EVs as key factors in Massachusetts. In New York, the difference is 45 percent: premiums for EVs reach $4,531 versus $3,135 for a comparable gasoline model, which is higher than what drivers in Massachusetts pay.
Premiums in Rhode Island are also extremely high. Average annual figures for new EVs currently stand at $6,043 versus $4,344 for new ICE models, making gasoline cars cheaper by 39 percent. According to Insurify, the state has also seen a 41 percent jump in car insurance costs since the beginning of 2024.
Most Expensive EVs to Insure
Luxury EVs dominate the list of the most expensive models to insure. The Mercedes-Benz EQS sedan tops the rankings with an average annual full-coverage premium of $4,703, followed by the Tesla Model S ($4,558) and BMW i5 ($4,554). According to Insurify, all five Tesla models are among the ten most expensive EVs to insure.
The comparison with gasoline cars is not always clear-cut. While most EVs in the ranking cost more to insure than their gasoline counterparts, the Mercedes-Benz EQS Sedan is actually cheaper to insure than the Mercedes-Benz S-Class, which has an average annual premium of $5,101.
In other cases, the EV “penalty” persists. The Tesla Model S costs an average of $4,558 per year versus $3,692 for a BMW 5-Series, while the Cybertruck costs $4,135 to insure compared to $2,754 for a gasoline Chevrolet Silverado. The Tesla Model Y also has a significantly higher premium of $4,021 versus $3,011 for an Audi Q5.
States Where EVs Are Cheaper
Interestingly, there are some states where operating an EV is actually cheaper. Montana leads: there, EVs are 4 percent cheaper — $2,242 versus $2,339 for gasoline cars. The difference is also 4 percent in West Virginia, where EV premiums are $2,062 and ICE models are $2,148. Nebraska also slightly favors EVs: premiums for new EVs are $2,055 versus $2,086 for gasoline cars.
Insurance Costs: EV vs. Gasoline Car
| STATE | EV vs. Gas Cost Difference | Average Annual EV Premium | Average Annual Gas Premium |
| Alabama | 5% | $2,327 | $2,222 |
| Arkansas | 7% | $2,588 | $2,414 |
| Arizona | 14% | $2,622 | $2,305 |
| California | 21% | $3,584 | $2,969 |
| Colorado | 22% | $3,977 | $3,249 |
| Connecticut | 15% | $3,640 | $3,174 |
| District of Columbia | 27% | $6,102 | $4,821 |
| Delaware | 30% | $4,046 | $3,123 |
| Florida | 18% | $3,954 | $3,352 |
| Georgia | 13% | $4,211 | $3,714 |
| Iowa | 16% | $2,022 | $1,745 |
| Idaho | 31% | $2,063 | $1,573 |
| Illinois | 16% | $2,709 | $2,333 |
| Indiana | 3% | $2,138 | $2,067 |
| Kansas | 27% | $3,073 | $2,411 |
| Kentucky | 9% | $3,393 | $3,102 |
| Louisiana | 11% | $3,626 | $3,274 |
| Massachusetts | 54% | $3,560 | $2,318 |
| Maryland | 23% | $4,919 | $4,012 |
| Maine | 16% | $2,154 | $1,856 |
| Michigan | 8% | $4,165 | $3,843 |
| Minnesota | 22% | $3,391 | $2,776 |
| Missouri | 27% | $3,884 | $3,065 |
| Mississippi | 6% | $2,846 | $2,674 |
| Montana | -4% | $2,242 | $2,339 |
| North Carolina | 28% | $2,374 | $1,848 |
| Nebraska | -1% | $2,055 | $2,086 |
| New Jersey | 36% | $5,632 | $4,145 |
| New Mexico | 12% | $2,189 | $1,961 |
| Nevada | 26% | $4,142 | $3,286 |
| New York | 45% | $4,531 | $3,135 |
| Ohio | 2% | $1,677 | $1,649 |
| Oklahoma | 9% | $2,880 | $2,637 |
| Oregon | 36% | $3,346 | $2,454 |
| Pennsylvania | 19% | $2,466 | $2,077 |
| Rhode Island | 39% | $6,043 | $4,344 |
| South Carolina | 21% | $4,174 | $3,460 |
| Tennessee | 18% | $2,494 | $2,120 |
| Texas | 10% | $3,227 | $2,926 |
| Utah | 17% | $2,142 | $1,838 |
| Virginia | 24% | $3,640 | $2,931 |
| Washington | 30% | $3,260 | $2,515 |
| Wisconsin | 1% | $1,774 | $1,761 |
| West Virginia | -4% | $2,062 | $2,148 |
Source: Insurify
EV Models vs. Gasoline Counterparts
| EV Model | Average Annual Full-Coverage Premium | Comparable Gasoline Vehicle | Average Annual Full-Coverage Premium |
| Mercedes EQS Sedan | $4,703 | Mercedes S-Class | $5,101 |
| Tesla Model S | $4,558 | BMW 5-Series | $3,692 |
| BMW i5 | $4,554 | BMW 5-Series | $3,692 |
| Tesla Model 3 | $4,489 | BMW 3-Series | $3,689 |
| Tesla Model X | $4,474 | Audi Q7 | $3,332 |
| Dodge Charger Daytona EV | $4,183 | Dodge Charger | $3,831 |
| Tesla Cybertruck | $4,135 | Chevrolet Silverado | $2,754 |
| BMW i4 | $4,081 | BMW 4-Series | $3,666 |
| Tesla Model Y | $4,021 | Audi Q5 | $3,011 |
| Mercedes EQE Sedan | $4,013 | Mercedes E-Class | $3,441 |
Source: Insurify
This data shows that, while the overall trend points to higher insurance costs for EVs, the situation is much more complex. The age of the vehicle, regional features, and even the specific model can radically change the picture. For example, the fact that EVs are cheaper to insure in some states may be due to local programs supporting green transportation or a lower number of expensive accidents involving EVs. It is also worth noting that premiums for luxury gasoline models, such as the Mercedes S-Class, can be even higher than for their electric counterparts, breaking the stereotype of a clear “penalty” surcharge for EVs. Over time, as the EV fleet ages and their repairs become cheaper, this gap will likely continue to shrink, making electric cars more affordable not only in operation but also in insurance.
