EVs Expensive to Insure
Study finds that the cost far exceeds ICE insurance.
Higher EV prices and repair costs contribute to elevated insurance premiums, the study found.
Pexels/Kindel Media
Electric vehicles cost nearly a quarter more than gas-powered models to insure, according to a new report.
Insurance comparison shopping website Insurify found that annual full-coverage policies for EVs average $3,430 versus $2,778 to insure vehicles with internal combustion engines, a 23% premium.
The Massachusetts-based company pointed to higher EV prices and repair costs as reasons for the disparity.
It said the average manufacturer suggested retail price for an EV is a little over $55,000, 13% above the average ICE price of $48,724, according to Kelley Blue Book data.
The average EV repair cost is $6,066, 29% higher than for ICE vehicles, again according to a KBB statistic.
Lower fueling costs for EVs help make up for the higher costs to insure them, Insurify pointed out. Those who charge theirs only at home spend as little as $812 a year on the electricity, it said, citing KBB numbers, while the average annual cost to fuel ICE vehicles is $2,449, Insurify said, quoting a J.D. Power report based on Bureau of Labor Statistics data.
LEARN MORE: Auto Insurance Costs Trended Down as Year Closed
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