The Hidden EV Cost Nobody Talks About: Insurance | Insurify

Insurify’s latest findings put a spotlight on an often-overlooked EV expense: insurance premiums. The report says the average annual cost to insure an electric vehicle is $3,159, about 42% higher than the average annual rate for a gas-powered car. For newer vehicles, the gap narrows to 18%, but EV owners still pay roughly $501 more per year on average. Insurify and industry figures attribute the higher rates less to driving risk and more to repair costs, citing expensive components such as battery packs, specialized sensors, cameras, and high-voltage systems. Julia Taliesin of Insurify notes that replacing a battery can exceed the total cost of a used gas car, and that there is also a shortage of mechanics trained for EV repairs. Insurers also price conservatively due to limited EV claim history, though the report expects improvements as repair networks expand and claims databases grow.