🚗 Electric vs. Gas Cars: Insurance Cost Comparison in 2025

🔋 Introduction

Electric vehicles (EVs) are no longer niche—they’re mainstream. In 2025, EV sales are projected to surpass 40% of new car purchases in the U.S. But while they offer fuel savings and eco-benefits, their insurance costs are often misunderstood.

Are electric cars more expensive to insure than gas-powered vehicles? What factors influence the cost difference? This guide compares EV vs. gas car insurance in 2025 and recommends top insurers for each.

⚖️ Insurance Cost Comparison: EV vs. Gas Cars (2025)

Vehicle Type: Mid-size Gas Sedan
Avg. Monthly Premium: $145

Vehicle Type: Mid-size Electric Sedan (e.g., Tesla Model 3)
Avg. Monthly Premium: $175

Vehicle Type: Compact Gas Hatchback
Avg. Monthly Premium: $132

Vehicle Type: Compact Electric (e.g., Nissan Leaf)
Avg. Monthly Premium: $160

Vehicle Type: Luxury Electric SUV (e.g., Rivian, Lucid)
Avg. Monthly Premium: $210

(source: valuepenguin.com)

✅ Why EVs Are Usually More Expensive to Insure

• Higher repair costs (especially battery systems)

• Limited repair shops for EV-specific damages

• Advanced tech increases the cost of claims

• More total loss claims due to unrepairable battery damage

• Costlier parts and specialized mechanics

🏆 Best Insurance Providers for EVs & Gas Cars

Provider: Progressive
Why It’s Recommended: Offers EV-specific coverage and Snapshot usage-based savings

Provider: State Farm
Why It’s Recommended: Reliable support, hybrid discounts, and large repair network

Provider: GEICO
Why It’s Recommended: Competitive rates for gas cars and basic EVs

Provider: Allstate
Why It’s Recommended: EV protection options, tech coverage, and roadside assistance

Provider: USAA
Why It’s Recommended: Best overall value for military families, EV or gas

🎯 Recommendations by Driver Type

Driver Type: Urban EV commuters
Recommended Provider: Progressive
Reason: EV-friendly policies and discount tracking apps

Driver Type: Gas vehicle owners with clean record
Recommended Provider: GEICO
Reason: Low rates and quick claims

Driver Type: Military families with EVs
Recommended Provider: USAA
Reason: Best pricing and top service

Driver Type: First-time EV owners
Recommended Provider: Allstate
Reason: Tech coverage and easy roadside access

Driver Type: Hybrid vehicle drivers
Recommended Provider: State Farm
Reason: Bundling discounts and EV support

💡 Tips to Save on EV Insurance

• Opt for usage-based tracking apps (like Progressive Snapshot)

• Install anti-theft systems

• Choose EVs with readily available parts

• Bundle home and auto insurance

• Take defensive driving courses (even for EVs)

📚 Sources

(source: nerdwallet.com)
(source: valuepenguin.com)
(source: forbes.com)

• Easily calculate your insurance cost and find the best provider for your needs — start now using the calculator at the link below: Auto Shield Calculator | COVERADAR

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