Overall Insurance Cost Picture
The price difference between internal combustion engine vehicles and their electric counterparts continues to shrink; however, an EV will still hit the wallet harder than a gas model at the dealership. Costs don’t end there. According to a new Insurify study, insuring an EV is also significantly more expensive.
Currently, the average cost of insuring an electric vehicle in the US is a striking $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 currently stands at $2,218. The difference reaches 42 percent. However, when diving 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 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 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 gas alternative.
Regional Cost Differences
Insurance premiums vary significantly depending on where you live. The Insurify 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’s $4,821.
EV owners in Massachusetts also feel the financial pressure. While the average annual premium for a new EV is $3,560, for a new ICE vehicle it is only $2,318, making a gas car 54 percent cheaper. Insurify points to 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 auto insurance costs since the start 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 among the 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” remains. 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-powered 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: EVs there are 4 percent cheaper — $2,242 versus $2,339 for gas vehicles. 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 gas vehicles.
Insurance Cost: EV vs. Gas Vehicle
| STATE | Cost Difference EV vs. Gas | Avg Annual EV Premium | Avg 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 | Avg Annual Full Coverage Premium | Comparable Gas Vehicle | Avg 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. Vehicle age, regional characteristics, and even the specific model can completely 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 fewer costly 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 a clear “penalty” surcharge for EVs. Over time, as the EV fleet ages and repair costs decrease, this gap will likely continue to shrink, making electric cars more accessible not only in terms of operation but also insurance.