by Overall insurance cost picture
The price difference between internal combustion engine vehicles and their electric counterparts continues to narrow; however, an electric vehicle will still hit your wallet harder than a gasoline model at the dealership. The costs don’t end there. According to a new study by Insurify, insuring an electric car 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 last year, this amount still substantially exceeds the average annual insurance cost for a gasoline vehicle, which is currently $2,218. The difference reaches 42 percent. However, when you dig 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 gasoline models lowering the overall figure.
Therefore, it’s not surprising that a typical electric vehicle costs more to insure than its gasoline counterpart. The gap narrows sharply to 18 percent when comparing vehicles from 2024 and newer of all types. In this case, the average premium is $3,293 for an electric vehicle versus $2,792 for a gasoline alternative.
Regional differences in cost
Insurance premiums vary significantly depending on where you live. Insurify’s analysis, which covers over 235 million insurance rates, shows that in some states, the difference between insuring a new electric vehicle (2024 or newer) and a comparable ICE vehicle can reach 50 percent.
Washington, D.C., is the most expensive location in the study: the average insurance cost for new electric vehicles is $6,102, while for new gasoline vehicles it’s $4,821.
Electric vehicle owners in Massachusetts also feel the financial pressure. Although the average annual premium for a new electric car is $3,560, for a new ICE vehicle it is only $2,318, making a gasoline car 54 percent cheaper. Insurify points to the dense urban environment, more expensive vehicles, and higher repair costs for electric vehicles as key factors in Massachusetts. In New York, the difference is 45 percent: premiums for electric vehicles reach $4,531 compared to $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 rates for new electric vehicles are currently $6,043 compared to $4,344 for new ICE models, making gasoline vehicles 39 percent cheaper. According to Insurify, the state has also seen a 41 percent jump in auto insurance costs since the start of 2024.
Most expensive electric vehicles to insure
Luxury electric vehicles 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 among the top ten most expensive electric vehicles to insure.
Comparisons with gasoline vehicles are not always straightforward. While most electric vehicles on the list 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 electric vehicle “penalty” persists. The Tesla Model S averages $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 gasoline Chevrolet Silverado. The Tesla Model Y also has a significantly higher premium at $4,021 versus $3,011 for the Audi Q5.
States where electric vehicles are cheaper
Interestingly, there are some states where operating an electric vehicle is actually cheaper. Montana leads: electric vehicles are 4 percent cheaper there at $2,242 versus $2,339 for gasoline vehicles. The difference is also 4 percent in West Virginia, where premiums for electric vehicles are $2,062 and for ICE models $2,148. Nebraska also slightly favors electric vehicles: premiums for new electric cars are $2,055 versus $2,086 for gasoline vehicles.
Insurance cost: EV vs. gasoline vehicle
| STATE | Cost difference EV vs. Gas | Average annual premium EV | Average annual premium Gas |
| 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
These data indicate that, while the overall trend points to higher insurance costs for electric vehicles, the situation is much more complex. Vehicle age, regional characteristics, and even the specific model can dramatically change the picture. For example, the fact that in some states electric vehicles are cheaper to insure may be related to local support programs for “green” transportation or fewer expensive accidents involving electric cars. 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 electric vehicle fleet ages and their repair costs decrease, this gap is likely to continue narrowing, making electric cars more affordable not only to operate but also to insure.
