Yes, insurance for electric cars is generally more expensive than for gas-powered vehicles. On average, EV drivers pay about 15–20% more for full coverage due to higher purchase prices, repair costs, and specialized labor. In 2025, the average monthly premium for an electric vehicle is approximately $337, or about $4,043 per year, significantly higher than the national average for gasoline vehicles.
While premiums are higher, the insurance process and required coverages are identical. EVs must meet your state’s minimum liability standards and can be covered by the same types of policies as gas cars. If you’re shopping for EV insurance or need help with an SR-22 filing, contact Insure on the Spot at 773-202-5060 for personalized assistance.
Why Is Electric Car Insurance More Expensive?
Several factors contribute to higher premiums for electric vehicles. First, EVs typically cost more to buy than comparable gas cars, which drives up the amount insurers might have to pay in a total-loss scenario. Second, EV repairs are often more expensive due to specialized parts, battery systems, and labor.
Electric vehicles also tend to use advanced technology — from sensors and cameras to driver-assist systems — which can be costly to repair or recalibrate after an accident. Finally, claim data shows that EV owners may file slightly more claims, further increasing insurer risk.
Do Electric Cars Need Special Insurance or Coverage?
No, you don’t need a special type of insurance policy to cover an electric vehicle. EVs are covered by standard auto insurance policies using the same structure as gas vehicles. This includes liability, collision, comprehensive, and optional coverages like uninsured motorist and medical payments.
That said, it’s a good idea to consider higher liability limits, comprehensive and collision coverage, and possibly gap insurance if you’re financing the vehicle. EVs tend to be more valuable, so having full coverage is especially important to protect your investment.
What Optional Coverages Should EV Owners Consider?
Electric vehicle owners should strongly consider gap insurance, especially if they lease or finance their vehicle. Since EVs can depreciate quickly, gap coverage can protect you from owing more than your car is worth after a total loss.
You might also ask your insurer whether portable charging equipment is covered under comprehensive. Home charging stations are typically covered by homeowners insurance. Roadside assistance and OEM parts endorsements are also valuable if you want support for unique EV breakdowns or want to maintain your car with original parts.
Is There a Legal Difference in Coverage for EVs?
No, there’s no legal distinction between electric and gas-powered vehicles when it comes to insurance requirements. If you’re caught driving without insurance in any car — electric or otherwise — you can face the same penalties: fines, license suspension, and even SR-22 filing requirements in some states.
If your electric vehicle is not being driven, consider keeping at least comprehensive coverage to protect against theft, fire, or vandalism. Lapsing coverage can increase your future rates and complicate license reinstatement if needed.
How Can You Save Money on Electric Car Insurance?
To save on EV insurance, start by comparing quotes from multiple insurers. Some companies offer green vehicle discounts or better rates for drivers with clean records and low mileage. Ask about bundling options, usage-based programs, or discounts for advanced safety features.
If you can afford it, increasing your deductible may also lower your premium. And don’t forget to explore telematics programs, especially if you drive safely and consistently. Choosing a more affordable EV model can also help reduce your insurance costs over time.
Frequently Asked Questions
Q: Is car insurance more expensive for electric cars?
A: Yes. EV insurance typically costs 15–20% more than gas car insurance due to higher repair and replacement costs.
Q: Why are electric vehicles more expensive to insure?
A: EVs have costly components like battery systems, require specialized labor, and often involve complex electronics, which raise claim costs.
Q: Do I need a special insurance policy for an electric car?
A: No. EVs are insured through standard auto policies. There’s no separate policy required, but premiums may vary based on the car.
Q: What coverage should I get for my electric car?
A: Full coverage is recommended. That includes liability, collision, and comprehensive insurance — plus extras like UM/UIM and gap insurance.
Q: Are there insurance discounts for electric cars?
A: Yes. Many insurers offer green vehicle or low-mileage discounts for EV drivers. Always ask your agent about EV-specific savings.
Q: How much is the average electric car insurance cost?
A: Around $337 per month or $4,000 per year on average, but this varies widely by driver, location, and vehicle model.
Q: Which electric cars are cheapest to insure?
A: The Volkswagen ID.4, Nissan Leaf, Chevy Bolt, and Hyundai Kona EV often rank among the lowest for EV insurance premiums.
Q: Does auto insurance cover battery damage in an EV?
A: Yes, if you have collision or comprehensive coverage. These policies cover sudden, accidental damage — not wear-and-tear.
Q: Will my insurance cover the charger and charging equipment?
A: Portable chargers may be covered by auto insurance. Wall-mounted home chargers are usually covered by homeowners insurance.
Q: Do electric cars get into fewer accidents?
A: Not necessarily. While they have safety features, real-world data shows EVs have slightly higher claim frequencies in some studies.
Q: If I get a DUI in an electric car, does anything change?
A: No. A DUI affects your insurance regardless of the vehicle. You’ll likely pay more and may need an SR-22 filing.
Q: Is EV insurance worth it despite the higher cost?
A: Yes. EVs are valuable assets, and insurance protects you financially. Coverage is required by law and essential for peace of mind.
Your Trusted EV Insurance Partner
At Insure on the Spot, we help drivers across Illinois get the right insurance for their electric vehicles — from full coverage options to SR-22 filings. Whether you drive a Tesla, a Chevy Bolt, or a Rivian, we can tailor a policy that fits your needs and budget.
Call us today at 773-202-5060 for a free quote or help reviewing your current EV coverage.