New data uncover another hidden cost of EV ownership: high insurance premiums
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As the price of buying an electric vehicle is set to soar with tariffs and the end of government incentives, drivers who want to go green have another hidden cost to consider before making the switch.
The insurance premiums on electric vehicles are, on average, a whopping 49% higher than those for gas-powered cars, according to new data from the digital insurance platform Insurify.
It costs an average of $4,058 annually to insure an electric vehicle, compared with $2,732 for a traditional vehicle, according to the data. Electric cars cost more to replace, are more expensive to repair, and are more likely to have issues that lead to insurance claims, the report said.
The steep insurance prices for EVs come as the U.S. electric-vehicle industry is being battered by auto tariffs, federal legislation and the expiration of a tax incentive attached to new and used electric vehicles.
“Insurance costs, because they are ongoing, do matter in the long-term calculation of whether it costs more or less for any given person to drive an EV versus a gas-powered car,” said Julia Taliesin, who authored the report.
The insurance premiums on electric vehicles are, on average, a whopping 49% higher than those for gas-powered cars, according to new data from the digital insurance platform Insurify.
It costs an average of $4,058 annually to insure an electric vehicle, compared with $2,732 for a traditional vehicle, according to the data. Electric cars cost more to replace, are more expensive to repair, and are more likely to have issues that lead to insurance claims, the report said.
The steep insurance prices for EVs come as the U.S. electric-vehicle industry is being battered by auto tariffs, federal legislation and the expiration of a tax incentive attached to new and used electric vehicles.
“Insurance costs, because they are ongoing, do matter in the long-term calculation of whether it costs more or less for any given person to drive an EV versus a gas-powered car,” said Julia Taliesin, who authored the report.