The States Where EV Owners Pay Far More for Insurance

Close-up of an electric vehicle being charged, highlighting modern clean energy technology.

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When President Biden signed the Inflation Reduction Act (IRA) into law in August 2022, the legislation marked a historic step in reducing emissions and combating climate change in the United States. A tax credit of up to $7,500 for eligible electric vehicle buyers was among the law’s key provisions. This portion of the IRA was designed to make EVs more affordable and to encourage Americans to transition away from gas-powered vehicles – and since the law passed, EV sales have climbed each year in the United States.

In the early months of his new administration, however, President Trump passed a law that will allow these tax benefits to expire on September 30, 2025. If, and to what extent, the Trump administration’s new policy will impact EV sales in the coming months remains to be seen – but higher effective sticker prices starting this October are not the only financial burden EV buyers are going to face.

According to a recent report published by Insurify, an insurance cost analysis company, EVs cost about 49% more to insure, on average, than their gas-powered counterparts. According to the study, EV drivers make an average of $4,058 in auto insurance payments annually, compared to an average of $2,732 for Americans driving internal combustion engine (ICE) vehicles.

The degree to which average insurance payments for EVs exceed insurance costs for ICE vehicles varies considerably from state-to-state. In many parts of the country, EV owners are paying well over 60% more for insurance than those driving traditional gas-powered vehicles.

Using data from Insurify, Climate Crisis 247 identified the states where EV owners pay the most for car insurance. States are ranked on the relative difference in average annual insurance costs between EVs and traditional ICE vehicles.

According to Insurify, variations in average insurance payments for EV owners between the states are due to several factors. Environmental and social considerations, like potential exposure to natural disasters or high crime rates, can drive up insurance costs for all drivers. Additionally, in places where Americans have been slower to adopt EVs, insurers have less experience in estimating how much a given claim will cost, and as a result, they often charge higher prices for EV owners to reduce risk to the company.

10. Florida

EV versus comparable gas-vehicle insurance costs: 65.7% more expensive (+$2,094)
Average annual EV insurance cost: $5,283
Average annual gas-vehicle insurance cost: $3,189

9. New Mexico

EV versus comparable gas-vehicle insurance costs: 69.9% more expensive (+$1,480)
Average annual EV insurance cost: $3,597
Average annual gas-vehicle insurance cost: $2,117

8. Nevada

EV versus comparable gas-vehicle insurance costs: 70.2% more expensive (+$2,388)
Average annual EV insurance cost: $5,791
Average annual gas-vehicle insurance cost: $3,403

7. Indiana

EV versus comparable gas-vehicle insurance costs: 70.8% more expensive (+$1,459)
Average annual EV insurance cost: $3,520
Average annual gas-vehicle insurance cost: $2,061

6. Louisiana

EV versus comparable gas-vehicle insurance costs: 72.4% more expensive (+$2,182)
Average annual EV insurance cost: $5,197
Average annual gas-vehicle insurance cost: $3,015

5. Delaware

EV versus comparable gas-vehicle insurance costs: 76.4% more expensive (+$2,530)
Average annual EV insurance cost: $5,840
Average annual gas-vehicle insurance cost: $3,310

4. Iowa

EV versus comparable gas-vehicle insurance costs: 87.1% more expensive (+$1,561)
Average annual EV insurance cost: $3,354
Average annual gas-vehicle insurance cost: $1,793

3. Idaho

EV versus comparable gas-vehicle insurance costs: 95.1% more expensive (+$1,624)
Average annual EV insurance cost: $3,332
Average annual gas-vehicle insurance cost: $1,708

2. Pennsylvania

EV versus comparable gas-vehicle insurance costs: 98.7% more expensive (+$2,284)
Average annual EV insurance cost: $4,598
Average annual gas-vehicle insurance cost: $2,314

1. Arkansas

EV versus comparable gas-vehicle insurance costs: 99.5% more expensive (+$2,402)
Average annual EV insurance cost: $4,817
Average annual gas-vehicle insurance cost: $2,415

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