EVs Save You Gas Money, But EV Insurance Costs More
Lakshmi Iyengar
· 1 min read
Key Insights:
- EVs are an average $56/month ($672/year) more expensive to insure than gas-powered vehicles
- The five most expensive states to insure your EV are New Jersey, New York, Wisconsin, Colorado, and California
Electric Vehicles are More Expensive to Insure
EV | Gas-Powered Vehicles | |
|---|---|---|
Average Monthly Car Insurance Premium (September 2021-March 2022) | $205 | $149 |
Jerry car insurance pricing data reveals electric vehicles are an average $56/month more expensive to insure than gas-powered vehicles. This is attributed to a few major factors. First, the purchase price of EVs are often more expensive than combustion vehicles. According to Kelly Blue Book,
the average transaction price
for an EV is $62,876, about $15,000 above the industry average of $46,404 for a combustion vehicle. EVs are also more expensive to repair. For example, Tesla battery replacement costs can run up to
$7,000 per battery
. Because there are fewer EVs on the road (3% of all cars), there is also a smaller market for replacement parts and mechanics that know how to repair EVs.Methodology
Jerry analyzed business data from September, 2021 - March, 2022.
