True Cost to Own an EV Over 5–10 Years (insurance + fuel + maintenance)

Based on ~12,000 miles/year and national averages; costs are approximate

According to Cox Automotive, the average price of new EVs as of February 2026 was $55,300, which was $6,532 more than the average price of new internal combustion engine (ICE) cars¹. Meanwhile, used EVs cost $34,821 on average, which was only $1,334 higher than the average cost of used ICE vehicles. Overall, the upfront cost of buying an EV compared to a gas car has decreased, lowering the barrier to entry.

Of course, the purchase price is the easiest cost to compare when shopping for a car, but there are several other factors to consider. One of these is resale value, which is related to depreciation. EVs tend to depreciate faster than gas cars, especially in the first few years, largely due to rapidly improving technology. So, if you sell your electric car after five years, you can generally expect to recoup less than you would with a gas car. This is something to keep in mind when weighing how much it will cost you in the long run.

One of the main appeals of EVs is the ability to skip the gas station and fuel up via electricity instead. EV drivers have a few options when it comes to charging: at-home charging and public charging, which includes Level 1 (though uncommon), Level 2, and Level 3 chargers.

As of this writing, the average national cost of public EV charging, which includes all levels, is around $0.42 per kilowatt-hour (kWh). Charging at home can offer significant savings, but you need to make sure your wiring is properly set up for it. Most at-home chargers are Level 2 and can cost anywhere from a few hundred to a few thousand dollars to install, depending on your setup and how much electrical work needs to be done. Once you have it installed, you’ll pay less to charge at home than you would for public charging.

The average cost per kWh as of December 2025 was around $0.17, but this varies widely across the country. Electricity costs are lowest in the West North Central region at $0.13/kWh and highest in New England at $0.28/kWh.

Cost Breakdown Example

The cost to fuel your electric car depends on your battery capacity, but we’ll use a Standard Range Tesla Model 3 as an example, which has a capacity of around 60kWh. Best practice with EV charging dictates that you shouldn’t fully drain or fill your battery when you can avoid it in order to extend its usable life.

Assuming the owner charges their Tesla Model 3 at home from 20 percent to 80 percent charged, it would cost $6.12 based on the national average electricity cost. In California and New England, it would cost closer to $10, and in the West North Central region, it would cost around $5. Level 3 chargers are more expensive, costing around $0.40 per kWh, so charging would cost around $14.

Given that the average EV uses around 0.35 kWh per mile and assuming an annual mileage of 12,000 miles, we can estimate the following based on the national average electricity cost (note that this does not include the cost of installing an at-home charger):

Estimated EV charging cost over 5 years: $3,570

Estimated EV charging cost over 10 years: $7,140

Generally speaking, EVs are more expensive to insure than gas cars. This is mainly due to their higher purchase prices and high repair costs. According to our pricing data, EVs cost an average of $3,613 per year to insure, while the average for all vehicle types is $2,356. A used EV is generally going to be cheaper to insure than a new one.

As with all averages, these rates may not match the premium you’re quoted. Car insurance rates vary widely based on driving record, location, car make and model, driver age, and more. You can expect your insurance rates to go down as your car ages, but some years, this may be outweighed by inflation and general rate increases.

Estimating insurance costs is tricky given the number of variables involved, but assuming the yearly EV average of $3,613, the following are ballpark estimates for five and 10 years of ownership:

Estimated EV insurance cost over 5 years: $18,065

Estimated EV insurance cost over 10 years: $36,130

One of the main draws of EVs besides fuel savings is their minimal maintenance needs compared to gas cars. EVs don’t need oil changes, filter replacements, and other frequent services that ICE vehicles do. Brakes also last much longer in electric vehicles because they use regenerative braking.

It’s also worth noting that EVs tend to cost more to repair, but these costs are harder to pinpoint as repairs tend to be unexpected.

According to the latest AAA data, the cost to maintain a medium electric sedan in 2025 was around $1,358, assuming an annual mileage of 15,000. A medium gas-powered sedan, on the other hand, costs $1,786 per year to maintain.

Using this as a starting point, the following are estimated maintenance costs for an EV over the course of ownership:

Estimated EV maintenance costs over 5 years: $6,790

Estimated EV maintenance costs over 10 years: $13,580

The battery is the most important and expensive component of an electric car, and is one of the reasons EVs cost more to insure. Most EV batteries are under warranty for at least eight years, so assuming it’s not damaged, you shouldn’t need to replace it for a long time.

However, when it does come time to replace the battery, you’ll be looking at a hefty bill. Depending on the make and model of the EV and the labor costs in your area, a battery replacement can cost anywhere from $5,000 to over $20,000.

Estimated EV battery replacement cost over 5 years: $0

Estimated EV battery replacement cost over 10 years: $10,000

In addition to the major expense categories we’ve already covered, there are several costs tied to EV ownership that may be more easily overlooked.

• Tire wear: EVs tend to wear tires more quickly than gas cars due to their weight and torque. This means budgeting for more frequent tire rotations and replacements.
• Home electrical upgrades: Although we touched on this earlier, it’s worth mentioning again, as this is a crucial expense to account for. While installing a Level 2 charger in your home is not necessarily a huge expense, it can cost several thousand dollars if your existing wiring is not suitable for it.
• Registration fees: Several states charge extra fees for registering an EV to make up for lost gas tax revenue. Be sure to check the registration fees in your state and factor them into your annual cost of ownership.

There are many factors to consider when determining if an EV makes financial sense for you, but in general, the following types of drivers will benefit the most from the savings that an EV can offer:

• Daily commuters and other high-mileage drivers who will maximize fuel savings
• Homeowners who can easily install Level 2 charging
• Drivers in states with strong EV incentives and lower insurance rates
• Buyers who plan to hold the vehicle long-term

When purchasing a car, it’s important to take into account the various expenses that it will incur while you own it. Over a five- to 10-year period, EVs can offer meaningful savings on fuel and routine maintenance, but those benefits don’t always translate to a lower total cost of ownership.

EVs often come with higher insurance premiums, upfront prices, and potential repair costs, but the true cost of owning a car varies widely. Whether an EV will save you money depends heavily on your mileage, access to home charging, insurance rates, and more. To get a better idea of what a car will cost you, take the time to crunch your own numbers based on your region, expected usage, insurance quotes, local electricity rates, and financing.