Is EV Insurance More Expensive? 6 Myths Checked Against 2026 Rate Data
Newer EVs cost about 18% more to insure than newer gas cars, around $500 a year, not the 40%+ some headlines claim. But the model matters far more than the powertrain: a Hyundai Ioniq 5 averages under $2,000 for full coverage while a Tesla Model 3 runs $2,500 to $4,500 depending on whose data you read.
Ask around about EV insurance and you will hear a handful of confident claims. Some are true, some are half-true, and one is backwards. We checked six of them against the 2026 rate studies from Insurify and MoneyGeek.
Myth 1: “EVs cost 40% more to insure”
Verdict: misleading. The fair comparison is about 18%.
The 40%-plus figure is real, but it compares all EVs against all gas cars. Insurify found EVs averaged $3,159 a year for full coverage versus $2,218 for gas cars, a 42% gap. The problem is that the gas average includes millions of 12-year-old sedans that cost almost nothing to insure. Almost no EVs are that old.
Compare newer cars with newer cars and the gap shrinks:
| Comparison (Insurify, full coverage) | EV | Gas | Gap |
|---|---|---|---|
| All model years | $3,159 | $2,218 | +42% |
| Newer vehicles only | $3,293 | $2,792 | +18% ($501/yr) |
If you are choosing between a new EV and a new gas car, $500 a year is the realistic starting point, and the model you pick can erase it or double it.
Myth 2: “It’s because EVs crash more”
Verdict: no. It’s mostly repair cost.
Insurers price what a claim costs. EVs tend to carry higher purchase prices, battery packs that are expensive to replace if damaged, sensors packed into bumpers, and fewer independent shops qualified to fix them. A minor collision that would be a bumper cover on a gas car can mean recalibrating radar and cameras on an EV. That pushes up the cost per claim even if the claim rate is similar.
Myth 3: “All EVs are expensive to insure”
Verdict: false. The spread between models is bigger than the EV-vs-gas gap.
MoneyGeek’s 2026 national averages for full coverage, by model:
| Model | Avg. full coverage per year |
|---|---|
| Hyundai Ioniq 5 | $1,962 |
| Nissan Leaf | $2,064 |
| Chevrolet Equinox EV | $2,137 |
| Hyundai Ioniq 6 | $2,186 |
| Toyota bZ4X | $2,197 |
| Kia EV6 | $2,213 |
| Ford Mustang Mach-E | $2,328 |
| Polestar 2 | $2,878 |
| Tesla Model 3 | $3,268 |
| Tesla Model Y | $3,343 |
| Tesla Model S | $4,347 |
| All EVs, average | $3,281 |
| Hybrids, average | $2,956 |
Six of these EVs average less than a typical hybrid. The most popular EVs, the Teslas, sit at the top, and they pull the “EV average” up.
Myth 4: “One study tells you what you’ll pay”
Verdict: false, and the Model 3 shows why.
Here is the average annual full-coverage premium for the same car, from three published analyses:
| Source | Tesla Model 3 average |
|---|---|
| MoneyGeek, cheapest-insurers analysis | $2,495 |
| MoneyGeek, 2026 EV insurance averages | $3,268 |
| Insurify, 2026 EV report | $4,489 |
That is a $1,994 spread on one model. The studies use different driver profiles, coverage levels, insurer mixes, and model years. None of them is your quote. Use them to rank cars against each other, then get real numbers.
Illustration (AI-generated).
Myth 5: “Insurance doesn’t change whether an EV saves money”
Verdict: backwards. It often decides it.
In our EV vs hybrid comparison, a commuter with home charging saves about $1,000 a year on fuel against a 30-mpg gas car, but only about $180 a year against a Prius. A $500-a-year insurance gap wipes out the second entirely. And the gap between a cheap-to-insure EV and an expensive one is about $1,300 a year, the difference between the Ioniq 5 and the Model 3 in MoneyGeek’s averages. That is more than most commuters spend on charging in a year.
Myth 6: “There’s nothing you can do about it”
Verdict: false. You can move the number before you buy.
- Quote before you test drive. Get quotes on your two or three finalists using the VIN of an actual car on a lot. It takes 20 minutes and can change the shortlist; see our cheapest EVs ranked for insurance averages alongside price.
- Quote at least three insurers. Rankings differ by state and by driver. The cheapest company for a Model Y is often not the cheapest for an Ioniq 5.
- Ask about EV and safety-feature discounts, but compare the final premium, not the discount.
- Raise the deductible if you have the savings to cover it. On an expensive-to-repair car, the premium drop can be large.
- Check who can repair it near you. If the nearest certified body shop is 80 miles away, claims take longer and cost more. A quick call to a local shop before you buy is worth it.
- Leasing? Leases usually require higher liability limits and gap coverage. Price that in before you compare a lease with a loan; see lease vs buy.
Sources
Insurify’s 2026 report on electric vehicle insurance costs supplied the EV-versus-gas averages and its Model 3 figure; InsideEVs has a summary. Per-model averages are from MoneyGeek’s 2026 EV insurance analysis, and the lower Model 3 figure from its cheapest insurers for electric cars page. All are national averages for full coverage; your rate depends on your state, driving record, age, credit (where allowed), and coverage choices.
Checked October 2026.
FAQ
How much more is insurance for an electric car?
In Insurify's 2026 analysis, newer EVs averaged $3,293 a year for full coverage versus $2,792 for newer gas cars, about 18% or $501 more. Comparisons that include older gas cars show a bigger gap, around 42%, because old cars are cheap to insure.
What is the cheapest EV to insure?
In MoneyGeek's 2026 national averages for full coverage, the Hyundai Ioniq 5 ($1,962), Nissan Leaf ($2,064), and Chevrolet Equinox EV ($2,137) were among the cheapest. Teslas were among the most expensive.