A new Insurify report shows that the average annual cost to insure an electric vehicle is $3,159, which is about 42% higher than the average annual rate for a gas-powered car. For newer vehicles, the difference drops to 18%, but electric vehicle owners still pay about $501 more per year on average.

Why Are Electric Vehicles More Expensive to Insure?

Electric vehicle owners don’t pay higher rates because electric vehicles are riskier to drive. They pay more because repairs cost more when something breaks. Parts such as battery packs, specialized sensors, cameras, and high-voltage systems can make repairs more expensive, even after minor accidents.

Additionally, many repair shops don’t yet have the training or tools to work on electric vehicles, which means electric vehicle owners have fewer places to get their vehicles fixed, and labor costs go up. The cost to replace a battery can be more than the total cost of a used gas-powered car.

Industry Solutions

Industry experts point to several solutions that could help electric vehicle owners reduce their insurance premiums. One straightforward way to lower costs is to expand the number of certified electric vehicle repair shops. More trained technicians would mean more competition, faster repairs, and lower labor costs.

Manufacturers can also help by designing batteries and electronic parts that are easier and cheaper to replace after an accident. Some insurers think telematics could make a big difference. Safe driving habits, lower mileage, and smooth braking naturally offset the hardware’s premium penalty, giving safe drivers a direct way to opt out of legacy pricing and realize savings.

Original reporting: KTBS 3 (Shreveport) — read the source article.