EV Insurance 20% Higher Than Gas-Powered Car

By Douglas McIntyre • September 23, 2024

Rathaphon Nanthapreecha Pexels

Mercury Insurance says the cost to insure an EV is 20% higher than a gas-powered car. That is often not considered when considering the total monthly vehicle costs.

Chong Gao, director of product management R&D at Mercury Insurance, commented, “An EV, for example, might seem appealing for its expected fuel savings and lower maintenance costs, but insurance for them is on average 20% higher compared with an ICE vehicle, and they are typically more expensive to insure versus hybrids as well. However, as more people adopt EVs and insurance companies gather more data in the future, their insurance costs will likely even go out.

Insurance And Repairs

The rest are fuel efficiency, repair expenses, and home charging infrastructure. The average price of an EV is $55,000 compared to $45,000 for a new gas-powered car.

Charging Stations

This is another drawback to owning an EV, at least based on perception. People are concerned about range, number of charging stations, tire wear, and EVs do not fully charge in very cold weather.