As electric vehicles (EVs) gain popularity, their insurance costs remain significantly higher than those for gas-powered cars. According to Insurify’s analysis, insuring an EV costs an average of $3,159 annually, which is 42% more than the $2,218 average for gas cars. This cost disparity is primarily due to the higher repair costs associated with EVs.

Insurance Cost Trends

While EVs are generally more expensive to insure, the gap is narrowing for newer models. For vehicles from the 2024 model year or later, the insurance cost difference drops to 18%, thanks to the widespread adoption of assistive technology. Over the past year, insurance rates for newer EVs have decreased by 11.1%, compared to a 7.7% drop for newer gas-powered cars.

Regional Disparities

Insurance costs for EVs vary significantly across the United States. Washington, D.C., tops the list as the most expensive location for both EVs and gas cars, with annual premiums of $6,394 and $4,124, respectively. In Massachusetts, New York, and Rhode Island, the cost gap between insuring newer EVs and gas cars is particularly pronounced, with Massachusetts seeing a 54% difference.

Legislative Impact

The end of a federal tax credit for EV purchases in September 2025 led to a spike in sales before its expiration, followed by a significant drop. A proposed bill could further impact EV ownership costs by introducing a $130 annual registration fee for EVs, as they don’t contribute to the federal gas tax that funds the Highway Trust Fund.

Despite these challenges, rising gas prices, which have increased by 53% since the onset of the Iran war, make EVs an attractive option for cost-conscious drivers. EV owners could save an estimated $1,508 annually in fuel costs.

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