Electric vehicles were once expected to be cheaper to insure. Fewer moving parts, advanced safety features, and lower maintenance costs suggested lower risk.
That hasn’t played out.
In 2026, many EV owners are discovering that insuring an electric car can cost more than insuring a comparable gas powered model, sometimes significantly more. The reasons have less to do with drivers and more to do with how EVs are built, repaired, and priced.
Here’s what’s driving the increase and what EV owners can do about it.
Battery Repairs Are a Major Cost Driver
The single biggest factor in rising EV insurance premiums is the battery.
EV batteries are:
- Extremely expensive to replace
- Integrated into the vehicle structure
- Often damaged even in moderate collisions
In many cases, a damaged battery means the car is totaled even if the rest of the vehicle looks repairable. Insurers price this risk into premiums.
Repair Complexity Raises Claim Costs
EVs rely heavily on specialized components:
- High voltage systems
- Advanced driver assistance sensors
- Custom aluminum or composite frames
Fewer repair shops are certified to work on EVs, and labor costs are higher when repairs require specialized training or equipment. Longer repair times also increase rental car costs, which insurers absorb.
Higher claims severity equals higher premiums.
Parts Availability Still Lags
Unlike traditional vehicles, EV replacement parts are often:
- Model specific
- Limited in supply
- Slow to ship
When parts delays stretch repairs from days into weeks, insurers pay more and premiums adjust accordingly.
Higher Vehicle Values Mean Higher Payouts
Many EVs carry higher sticker prices than comparable gas vehicles. Even with falling EV prices, insured values remain relatively high.
That matters because:
- Comprehensive and collision coverage costs more on higher-value cars
- Total loss payouts are larger
- Theft claims result in higher losses
Insurers don’t just price frequency, they price potential payout size.
EV Technology Is Still Evolving
Insurers rely on historical data to price risk. EVs, as a category, have less long-term claims data than traditional vehicles.
When uncertainty is high, insurers price conservatively.
That uncertainty includes:
- Battery degradation over time
- Fire risks after collisions
- Long-term repair patterns
Until data stabilizes, premiums are likely to reflect caution.
Why Some EVs Cost More to Insure Than Others
Not all electric vehicles are priced the same by insurers.
Insurance costs tend to be higher for:
- Luxury EV brands
- Models with expensive proprietary parts
- Vehicles with limited repair networks
More affordable EVs with broader service access often cost less to insure.
How EV Owners Can Lower Insurance Costs
While EV premiums are rising, drivers still have options:
Shop around aggressively
Different insurers price EV risk very differently. Quotes can vary widely.
Increase deductibles
Higher deductibles can significantly lower collision and comprehensive premiums.
Ask about EV-specific discounts
Some insurers offer green vehicle or safety technology discounts.
Bundle policies
Combining auto with home or renters insurance can offset higher EV premiums.
Review coverage annually
As vehicle values change, coverage should adjust especially for older EVs.
Is EV Insurance Likely to Get Cheaper?
Over time, EV insurance costs may stabilize as:
- Repair networks expand
- Parts availability improves
- Claims data becomes more robust
For now, though higher premiums reflect real costs not insurer opportunism.
Electric vehicles may save money at the pump, but they often cost more to insure.
The increase isn’t about driver behavior. It’s about repair complexity, battery risk, and uncertainty in a rapidly evolving vehicle market.
For EV owners, the smartest move isn’t avoiding insurance, it’s understanding how EV risk is priced and shopping coverage accordingly.
In another related article, What Discounts Most Drivers Forget to Claim
