As electric vehicles gain mainstream adoption, one challenge remains clear: Insuring them is significantly more expensive than traditional gasoline-powered cars. According to recent data from Experian, the average monthly premium for EV insurance is approximately 44% higher than gas-powered vehicles: $357 for EVs, compared to $248 for gas-powered vehicles.

The growing popularity of electric cars is largely driven by government incentives, lower fuel costs and environmental concerns. But some consumers already feel that the upfront price of EVs, which may also include the additional cost of charging equipment at home, is a barrier to ownership. And when they factor in the added expense of insurance, the financial case for going electric becomes more challenging, and potential

Why Are Insurance Costs Higher for EVs?

EVs have higher insurance costs than gas-powered cars due to factors like expensive repairs, specialized parts and complex technology. While a driver’s history, location and personal circumstances also affect rates, the nature of EVs plays a significant role in their increased costs. Additionally, rising auto insurance rates overall make this disparity even more noticeable.