Car insurance for electric vehicles and hybrids is often higher due to their unique parts and coverage needs.
Green cars (including electric and hybrid vehicles) are growing in popularity. They get awesome mileage and they’re becoming more affordable. However, you may see higher premiums when you shop with an electric vehicle or hybrid.
Thankfully, Jerry connects green vehicle owners with great rates by scouring the market on your behalf (for free!).
Here’s what you can expect when researching car insurance quotes online for your hybrid or electric vehicle.
What’s the difference between electric vehicles and hybrids?
All-electric vehicles rely completely on battery power. You can either plug them into a wall outlet or a charging station.
At the time of purchase, you usually get a choice between a 110-volt or 240-volt charger (which affects how fast or slow your vehicle charges).
Plug-in hybrid electric vehicles (PHEVs) are similar, except they use electric batteries and motors in addition to gas engines. The electric-only motor kicks in for short trips (usually 10 - 50 miles) and the hybrid works for longer trips. You can charge PHEVs at home with a wall outlet.
Finally, hybrid vehicles employ both an electric motor and gas engine. The gas engine is used for highway driving and the electric will kick in for all the starting-and-stopping of city driving.
Pros and cons of driving an electric vehicle or hybrid
Whether you choose an electric vehicle or a hybrid, either way, you'll enjoy the benefits of having to pay less in gas while also helping the environment. Here are some of the pros and cons of owning a green vehicle.
|- Lower maintenance costs||- Higher insurance costs|
|- More eco-friendly||- Fewer charging stations|
|- Cheaper to run (gas-free)||- More expensive battery replacement|
|- Tax credits||- Pricier off the lot|
Overall, you might pay more upfront for your electric vehicle, but the long-term benefits (and savings) could still be worthwhile.
Insurance premium annual averages for green vehicles
Generally, the most affordable green car to insure is the Mitsubishi i-MiEV. The second most affordable electric vehicle to insure is the Toyota Prius.
Here’s what real customers are paying to insure their green vehicles with Jerry.
|Type of Car||Electric or Hybrid||Average Monthly Premium||Average Annual Premium|
|Ford C-Max SE||Hybrid||$110||$1,324|
|**Mitsubishi i-MiEV ES**||Electric||**$84**||**$1,008**|
|Nissan Leaf S||Electric||$111||$1,335|
|Tesla Model S||Electric||$158||$1,897|
Many companies are also releasing a new hybrid option of familiar models, such as the Hyundai Elantra, the Toyota Corolla, and the Honda Accord. But between a gas-powered Accord and a hybrid Accord (all other factors being equal), you’ll probably pay more for insurance for the hybrid.
"I got my quotes from Jerry and my jaw literally dropped. My deductibles were so low! I usually don’t rate apps but this one deserved the five stars!" - Satisfied Jerry User
Why are electric cars expensive to insure?
Studies show that insurance rates for hybrids are typically higher than regular cars by about 15-33%. Electric car premiums are higher by about 50-100%.
This is due to unique parts and service needs.
The more complex and rare your vehicle, the costlier it will be to order replacement parts and find a qualified mechanic. Plus, high list prices correlate to higher premiums, and green vehicles tend to be more expensive than gas-powered cars.
The truth is that green vehicles are still uncommon, thus leading to slightly higher insurance prices.
However, green vehicle owners benefit from some unique opportunities to reduce costs.
First, they enjoy reduced fuel costs since they’re consuming less gas. They’re often eligible for tax incentives, too, which could help offset the higher price of an insurance premium.
Check with the Energy Department to see if your vehicle is eligible for these financial rebates.
How to save on electric or hybrid car insurance
You should comparison shop to find a competitive rate before you purchase insurance for your EV or hybrid. You never know which company could offer a better price for your driving profile.
The best way to find savings is to use Jerry and uncover great rates for you and your electric vehicle.
Jerry is a free app (and licensed broker) that gathers affordable quotes, helps you switch plans or providers, and even cancels the old policy. The best part? The average Jerry user saves $879 a year on car insurance.
"Jerry is saving us $216 a month—and we got car insurance that matches 100% to my old coverage for so much cheaper. If you’re skeptical about finding insurance agents, let this review help you decide."
Another way to reduce your overall rate is to improve your credit, qualify for discounts, and raise your deductible.
In the end, buying an EV could save you thousands of dollars over the long run—even though you’ll pay a little more money upfront and a bit more for insurance.
How to get an electric car insurance quote
If you want cheap car insurance quotes for your electric car, go to Jerry. The app provides you with competitive quotes in under a minute and it handles all the paperwork for you if you decide to switch. You can even get same day digital proof of insurance!
Of course, you could call around to multiple companies to see what kind of rates they offer—and then try to keep track of everything and negotiate a better rate. But wouldn’t you rather sit back and let Jerry do it for you?
Frequently asked questions
Do I need a special policy for my electric car?
Nope. Insuring your hybrid or electric car is just like insuring any other car. You’ll be offered the same coverage and policies as a gas-powered vehicle owner: liability, comprehensive, collision, and more.
Is electric vehicle insurance different from gas-powered vehicle insurance?
Not really. Coverage is the same, since insurance is designed to be broad and comprehensive. You’ll still get protection for the standard types of damage and liability.
Your price might be higher if your vehicle is more complex or more expensive than a non-electric version.
The only difference is that some companies will offer you a discount for driving a green vehicle. Try asking your company about one of the following programs to enjoy a 5-10% reduction to your premium.
- Fuel-efficient discount
- Green vehicle discount
- Alternative fuel vehicle discount
"The Jerry app asked me a few questions to find discounts and it came back with a quote that has the exact same coverage for $150 less per month. Answering 10 questions could save you $1,800 a year. I’m blown away. 11/10."- Satisfied Jerry User
Are hybrid cars more expensive to insure?
Because of their unique parts, hybrid cars are typically more expensive to insure than other vehicles. However, they are usually cheaper to insure than fully electric vehicles, so hybrid cars may be the right middle ground for you if you'd prefer to keep lower insurance rates while also driving green.
Why is electric car insurance so expensive?
Car insurance premiums are based on repair and replacement costs. Electric cars often have high price tags and parts which are more costly than gas-powered vehicles.
Plus, fewer drivers means less information for insurance companies about risk.
As electric vehicles become more common in the future, it’s likely that insurance prices will go down, too. But for now, driving a green vehicle means you should expect to pay a little more than a typical gas-powered sedan’s rate for coverage.
How much is insurance for an electric car?
Average prices are about 30% more expensive than gas cars. The most affordable green vehicle for Jerry users was the $84 per month for the Mitsubishi i-MiEV. But rates can get much higher if you buy a brand new or very expensive green car.
You can still save money over the lifetime of the vehicle by qualifying for tax credits and enjoying reduced fuel costs.
To find the best price for your electric vehicle, Jerry is a good place to start. It compares quotes instantly and helps you register for a new policy, all without a single phone call. Jerry is free to use and the average user saves about $879 per year on car insurance.
Does Tesla offer insurance?
Yes, but only to California drivers at the moment.
Tesla offers insurance to all types of vehicles, not only Tesla models or electric cars. You can even get car insurance for autonomous vehicles with Tesla. However, if you’re not located in the Golden State, you’ll need to look for a different provider.
With 45 seconds and a smartphone, anyone can find great savings on car insurance with Jerry. Try it out (it’s free!) and you could save hundreds of dollars a year on insuring your green vehicle.
Don’t miss out on savings! Get Jerry’s help finding the best rates for your electric car—and avoid the hassle of old-school insurance shopping.
Haven’t shopped for insurance in the last six months? There might be hundreds $$$ in savings waiting for you.
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