by Overall Picture of Insurance Costs
The price difference between internal combustion engine vehicles and their electric counterparts continues to narrow, but an electric vehicle will still hit the wallet harder than a gas model at the dealership. The expenses don’t end there. According to a new study by Insurify, insuring an EV is also significantly more expensive.
Currently, the average cost of insuring an electric vehicle in the US is a staggering $3,159. While this is significantly lower than the peak of $3,509 in March of last year, this amount still far exceeds the average annual insurance cost for a gas vehicle, which is now $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 electric vehicle on US roads is significantly newer than the average ICE vehicle, simply because electric cars haven’t been around as long. Insurify estimates the average age of vehicles in its database at 11.5 years, with older gas models lowering the overall figure.
Therefore, it’s not surprising that a typical EV costs more to insure than its gas counterpart. The gap sharply narrows 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 gas alternative.
Regional Differences in Costs
Insurance premiums vary significantly depending on where you live. Insurify’s analysis, covering over 235 million insurance rates, shows that in some states, the difference between insuring a new EV (2024 or newer) and a comparable ICE vehicle can reach 50 percent.
Washington, D.C., is the most expensive place in the study: the average insurance cost for new EVs is $6,102, while for new gas vehicles it is $4,821.
EV owners in Massachusetts are also feeling the financial pressure. Although the average annual premium for a new EV is $3,560, for a new ICE vehicle it is only $2,318, making the gas car 54 percent cheaper. Insurify cites the dense urban environment, more expensive vehicles, and higher EV repair costs as key factors in Massachusetts. In New York, the difference is 45 percent: EV premiums reach $4,531 versus $3,135 for a comparable gas model, which is higher than what drivers in Massachusetts pay.
Premiums in Rhode Island are also extremely high. Average annual figures for new EVs are currently $6,043 versus $4,344 for new ICE models, making gas vehicles 39 percent cheaper. 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 ranking with an average annual full-coverage premium of $4,703, followed by the Tesla Model S ($4,558) and the BMW i5 ($4,554). According to Insurify, all five Tesla models are in the top ten most expensive EVs to insure.
Comparison with gas vehicles is not always straightforward. Although most EVs in the ranking are more expensive to insure than their gas 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 the BMW 5-Series, while the Cybertruck costs $4,135 to insure compared to $2,754 for the gas Chevrolet Silverado. The Tesla Model Y also has a significantly higher premium — $4,021 versus $3,011 for the 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 gas vehicles. The difference is also 4 percent in West Virginia, where premiums for EVs are $2,062, and for ICE models — $2,148. Nebraska also slightly favors EVs: premiums for new EVs are $2,055 versus $2,086 for gas vehicles.
Insurance Costs: EV vs. Gas Vehicle
| STATE | Cost Difference EV vs. Gas | 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. Gas Counterparts
| EV Model | Average Annual Full Coverage Premium | Comparable Gas 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
These data indicate that, although the overall trend points to higher insurance costs for EVs, the situation is much more complex. The age of the vehicle, regional characteristics, and even the specific model can dramatically change the picture. For example, the fact that EVs are cheaper to insure in some states may be related to local support programs for “green” transportation or a lower number of expensive accidents involving EVs. It is also worth noting that premiums for luxury gas models, such as the Mercedes S-Class, can be even higher than for their electric counterparts, breaking the stereotype of an unambiguous “penalty” surcharge for EVs. Over time, as the EV fleet ages and their repairs become cheaper, this gap will likely continue to narrow, making electric cars more affordable not only in operation but also in insurance.
