If you have an electric car or are planning to purchase one, understanding all about the electric car insurance rates is essential to get started on your insurance plan. In this blog, that’s precisely what we will be doing.
This blog covers all the information you need to know about electric car insurance, from the cost of the policies to the best companies that provide insurance in 2023. By the time you reach the end of this blog, we assure you that you will feel a lot more confident and assured about your electric car and its insurance. Let’s dive in!
Average Electric Car Insurance Rates in 2023
The cost of insuring an electric car can vary depending on multiple factors. According to one study by Value Penguin, it costs about $2500 annually to insure an electric vehicle compared to $1900 for a gasoline car. However, these figures are just approximate and can vary significantly.
The factors that can affect your car insurance rates in 2023 are:
The amount of coverage you choose
Driving history and experience
Your claims history
Your location
Your deductible
Your credit scores
Electric Car Insurance Cost by State
Florida is the most expensive state when it comes to electric car insurance. It can cost from $313 to $782 monthly to insure an electric car in the state.
Here are the insurance costs in other states:
State
Monthly cost
Alabama
$195
Alaska
$162
Arizona
$182
Arkansas
$223
California
$217
Colorado
$210
Connecticut
$224
Delaware
$219
District of Columbia
$224
Florida
$313
Georgia
$181
Hawaii
$121
Idaho
$122
Illinois
$158
Indiana
$147
Iowa
$145
Kansas
$203
Kentucky
$247
Louisiana
$295
Maine
$130
Maryland
$209
Massachusetts
$174
Michigan
$264
Minnesota
$160
Mississippi
$240
Missouri
$202
Montana
$194
Nebraska
$218
Nevada
$235
New Hampshire
$150
New Jersey
$226
New Mexico
$172
New York
$223
North Carolina
$105
North Dakota
$167
Ohio
$119
Oklahoma
$208
Oregon
$151
Pennsylvania
$193
Rhode Island
$224
South Carolina
$210
South Dakota
$184
Tennessee
$162
Texas
$196
Utah
$172
Vermont
$141
Virginia
$193
Washington
$180
West Virginia
$199
Wisconsin
$132
Wyoming
$170
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Best Electric Car Insurance Companies in 2023
There are quite a few insurance companies that provide coverage to electric vehicles in 2023. Among all those, we have compiled a list of the best ones. These companies have stood out in terms of the number of policies, discounts offered, financial capacity and customer service.
Allstate Insurance Company
Established in 1931, Allstate is one of the more prominent insurance companies. Allstate offers auto insurance, home insurance, renters’ insurance, life insurance, and more.
PROS
Coverage for charging equipment available
Covers specialized repairs and replacement of vehicle components
Opening a new policy is easy
Customer service is easily accessible
CONS
Customer ratings are below average
Available coverage options:
Liability coverage
Collision coverage
Comprehensive coverage
Medical payments coverage
Personal injury protection (PIP)
Uninsured and underinsured motorist coverage
Read our full Allstate Insurance review
Tesla Insurance
Tesla Insurance is the in-house auto coverage provider of the electric vehicle Tesla. It was established in 2019 and currently serves 11 states – Arizona, California, Colorado, Illinois, Maryland, Nevada, Ohio, Oregon, Texas, Utah, and Virginia.
PROS
Integrates well with the Tesla app
Customized especially for electric vehicle drivers
Multiple coverage and discount options are available
It can be cheaper for some Tesla owners
Telematics insurance program rewards drivers with good driving habits
CONS
The bundling policies option is not available
Writes policies in very few states
Poor customer service
Available coverage options:
Bodily injury liability insurance
Property damage liability coverage
Personal injury protection
Medical payments
Uninsured motorist/underinsured motorist
Collision coverage
Comprehensive coverage
Glass coverage
Roadside assistance
Rental car reimbursement
Gap insurance
Read our full Tesla Insurance review
State Farm Insurance
State Farm is the most suitable company if you want many discount options. State Farm, the largest auto insurer in the U.S., offers discounts for having multiple cars, good driving skills, defensive driving courses, etc.
PROS
Available in all states except Massachusetts and Rhode Island
Ranked No. 1 among eight large insurers in J.D. Power’s 2022 U.S. Insurance Shopping Study.
Low customer complaints
Better customer satisfaction
CONS
It doesn’t offer gap insurance
Available coverage options:
Liability
Medical payments
Uninsured motor vehicle
Uninsured motor vehicle property damage
Comprehensive
Collision
Read our full State Farm Insurance review
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Lemonade Insurance
Lemonade Insurance, founded in 2015, is best known for its use of artificial intelligence and chatbot technology to simplify and streamline the insurance process. Customers can easily get a quote, purchase a policy, file claims, and manage their insurance coverage through the Lemonade mobile app or website.
PROS
Low mileage savings
Discounts for bundling with other policies
Extra discounts, especially for electric vehicles
Additional insurance coverage options are available
CONS
Only available in two states – Illinois and Tennessee
Available Coverage Options:
Collision coverage
Comprehensive coverage
Medical payments coverage
Personal injury protection
Liability coverage
Uninsured/underinsured motorist coverage
Temporary transportation coverage
Extended glass coverage
Roadside assistance
Read our full Lemonade Insurance review
Buying an Electric Car: Pros and Cons
Electric Cars have become the new talk of the town and for all the right reasons. In today’s day and age, many people have become concerned about climate change and are switching to EVs.
If you are thinking about purchasing an electric vehicle, here are some pros and cons you might want to weigh before making your decision:
Smaller Carbon Footprint
Government Incentives
Lower Maintenance
Cost Savings
Advanced Technology
Difficulty in Finding a Charging Station
Longer Recharge Time
Higher Initial Price
PROS Explained
Smaller Carbon Footprint
Electric vehicles are good for the environment. We all know that. But how exactly do they reduce your carbon footprint?
Electric cars do not use fossil fuels for power, so they do not emit carbon dioxide, and help reduce air pollution. Entirely electric vehicles also don’t need a tailpipe and don’t produce exhaust. Their batteries are entirely emission-free too. On top of these, most electric cars do not use many vehicle lubricants and fluids that might be of environmental concern.
Government Incentives
The U.S. government offers $2500 to $7500 federal tax credit for electric vehicles. Many states also provide additional incentives for new EVs. Due to these perks, electric cars are more affordable regarding initial purchase and operational costs.
Lower Maintenance
Electric vehicles do not need as much effort in repair and maintenance as gas vehicles. These vehicles use less fluids; batteries and motors require less upkeeping; brake wear is reduced due to regenerative braking; and EVs have fewer moving parts than a conventional fuel engine.
Cost Savings
Driving an electric vehicle can cost up to 50% less than equivalent gasoline. Gasoline prices are also much more volatile and increase substantially over time. On the other hand, electricity prices are much more stable and don’t spike up that easily. Beyond this, lower maintenance costs and government incentives also make an EV much more affordable.
Advanced Technology
Electric cars often have advanced features and technology, including regenerative braking, smartphone integration, and cutting-edge infotainment systems. Owning an electric vehicle can provide a futuristic driving experience.
CONS Explained
Difficulty in Finding a Charging Station
Gas stations are more accessible and readily available than EV charging stations. And though the number of EV charging stations has increased, finding one might not always be easy – especially when driving a longer route.
Longer Recharge Time
Electric cars can take up to 80 hours (about three and a half days) when we use a Level 1 or Level 2 charger. Even the faster charging stations can take 30 minutes to charge to 80%. This is quite a giant leap compared to 5 minutes of charging time at gas stations. So, all EV drivers need to be cautious and mindful of this all the time.
Higher Initial Price
Electric vehicles might be more affordable overall or in the long run. But when it comes to the initial cost, they are certainly on the higher end of the scale. The battery packs of EVS can be more expensive as well.
You can get an EV only if you can pay a substantial amount upfront.
Electric Cars Vs. Gas Cars
Here are some of the key differences that separate electric cars and gasoline cars:
Point of Difference
Electric Cars
Gas Cars
Power Source
It uses electricity stored in batteries to power an electric motor
Use internal combustion engines fueled by gasoline or diesel
Emissions
During operation, do not release pollutants like carbon dioxide, nitrogen oxides, or particulate matter.
Emits exhaust gases that contribute to air pollution and greenhouse gas emissions.
Fueling
They are typically charged by plugging into an electric outlet or dedicated charging stations.
Require refueling at gas stations.
Energy Efficiency
More energy efficient
Comparatively less efficient
Range
The need for frequent recharging remains a limitation for some long-distance travel.
Offer longer driving ranges
Maintenance
They have fewer moving parts than gas cars and hence require maintenance
Comparatively, it needs to be maintained more frequently and produces higher maintenance costs
Performance
Deliver quick acceleration due to the instant torque provided by electric motors
May offer more engine power and performance options, particularly in high-speed scenarios.
Noise Levels
Typically, it is quieter than gas cars because they do not have combustion engines.
To produce more noise than electric vehicles
Cost of Ownership
Though electric cars are more expensive due to the cost of their batteries, the operational costs of these vehicles tend to be lower. Also, electric cars can benefit from government incentives and tax credits
Gas cars are more affordable regarding initial costs, but they might be more costly over time than their electric counterparts.
Charging Infrastructure
The charging infrastructure for electric cars is expanding but is still not as extensive as gas stations.
Gas cars have the advantage of an established refueling network, making it easier to find a fueling station than charging points for electric vehicles.
Environmental Impact
Electric cars contribute to a lower overall carbon footprint when the electricity used for charging comes from renewable sources.
Gas cars rely on fossil fuels, contributing to climate change and other environmental issues.
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Frequently Asked Questions
Is an electric car more expensive to insure?
Yes, electric car insurance is more expensive for several reasons. Firstly, electric vehicles have higher purchasing costs. EVs cost more if we need to repair or replace them. These vehicles also have more expensive and high-capacity batteries.
What is the cheapest car to insure?
According to Forbes, the cheapest EV to insure is the Mini Cooper SE. It costs only $1,479 annually to insure this vehicle. Hyundai Kona SEL and Hyundai Kona Limited are also close second and third at $1,498 and $1,534 annual premiums, respectively.
How to get the best insurance for electric cars?
The best way to get the right insurance for electric cars is through an insurance agent. Your agent can help you navigate all aspects of the insurance and provide helpful recommendations and guidance to get coverage suitable for your needs.
