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Go green and save with the best value auto insurance for your electric car.
Full Coverage Averages
• Annual Premium: $1,643
• Monthly Premium: $137
Pros + Cons
✓ One of the cheapest auto insurances for electric vehicles on average
✓ Multiple discounts, including safety features, good payer, multi-policy, and student discounts
X Only available in 26 states, primarily in the Midwest, South, and Southeast
Full Coverage Averages
• Annual Premium: $1,630
• Monthly Premium: $136
Pros + Cons
✓ Benefits available for new-car owners
✓ Discounts for hybrid/electric car drivers
X Below-average claims satisfaction
Read our Travelers Review.
Full Coverage Averages
• Annual Premium: $1,697
• Monthly Premium: $141
Pros + Cons
✓ Multiple discounts available for safe drivers
✓ Anti-theft discounts, which most electric vehicles have
X No accident forgiveness
Read our State Farm Review.
Looking for insurance for your EV? As an electric vehicle owner, you know the benefits of driving an electric or hybrid vehicle include lower emissions and maintenance costs. Most insurance companies will insure electric and gas vehicles; however, the insurance cost for electric cars is higher, typically. Choose your auto insurance provider carefully to get the best coverage for your electric car.
While insurance for an electric vehicle may be higher, see how much you’ll save on fuel compared to a gas car. We’ve also reviewed the best auto insurance for Teslas and assembled a guide to insuring an electric vehicle.
Editor’s note (last updated June 18, 2024): We have updated this page to reflect the most recent pricing information, third-party data, and coverage options.
Best Value Auto Insurance for Electric Cars: Auto-Owners
Best Auto Insurance for New Electric Car Owners: Travelers
Best Electric Car Insurance for Teachers and Emergency Responders: COUNTRY Financial
Best Auto Insurance for Safe Drivers With Electric Cars: State Farm
Best Auto Insurance for Farm Bureau Members With Electric Cars: Farm Bureau Financial Services
Provider | What it’s best for | J.D. Power claims satisfaction rating (out of 1,000)1 | Discounts available | Average annual cost of insurance for full coverage | Policy covers charging equipment? |
---|---|---|---|---|---|
Auto-Owners | Value | 888 | Multi-policy, good payer, paperless billing, safety features, student discounts | $1,643 | No, but may be covered under homeowners insurance |
Travelers | New-car owners | 871 | Driver training, good student, hybrid/electric auto, multi-policy, student away | $1,630 | No, but may be covered under homeowners insurance |
COUNTRY Financial | Teachers and emergency responders | 894 | Multi-policy, legacy, engaged couple, good student, good driver, advanced quote | $1,728 | No, but may be covered under homeowners insurance |
State Farm | Safe drivers | 891 | Accident-free, defensive driver course, multi-car, student away from home | $1,697 | May be included in collision/comprehensive coverage |
Farm Bureau Financial Services | Farm Bureau members | Not ranked | Member’s Choice (home and auto bundle), safe driving, claim-free, good student, low-mileage, multi-car, loyalty | $1,788 | No, but may be covered under homeowners insurance |
Electric cars have rechargeable batteries and no gas engines. Plug-in hybrid electric vehicles (PHEVs), in contrast, have engines and electric motors. PHEVs recharge their batteries through their rechargeable batteries and regenerative braking.
Auto-Owners Insurance offers life, home, and business insurance in addition to its original offering: auto insurance. Over 48,000 licensed agents across 26 states represent this Fortune 500 company. The average annual cost of auto insurance for an electric car from Auto-Owners Insurance is $1,643, making it one of the cheapest auto insurance companies for electric vehicles on average. Auto-Owners Insurance also offers safety feature discounts that benefit new car owners, including electric vehicle owners.
Standard auto insurance coverage for gas and electric vehicles from Auto-Owners Insurance includes:
Electric vehicles tend to have a wide range of modern safety features, such as collision warning systems and blind-spot monitors, so you’ll save if your insurance offers discounts for these high-tech safety features. Auto-Owners offers discounts if your electric vehicle has antilock brakes, airbags, and anti-theft devices.
Auto-Owners offers multiple student discounts. Students are eligible for a good student discount of up to 20 percent if they maintain at least a B average. On top of that, students attending school more than 100 miles from home without vehicles and teenage drivers with GPS devices or other eligible safe driving tech for teens may receive additional discounts.
Many insurance companies, including Auto-Owners, help cover the cost of a rental car if you can’t use your vehicle due to an accident. Auto-Owners also extends your coverage to any rented vehicle as long as you travel within your coverage area. If your primary car is an electric vehicle, rental car coverage can help you bypass one of the pitfalls of long-distance driving.
Depending on where you live and where you’re going, there may or may not be charging stations along your route. More rural areas, for example, likely won’t have the infrastructure to support driving your electric vehicle over long distances. If you need to rent a car for road trips, weekend trips, and other unexpected events, rental car coverage from Auto-Owners might give you peace of mind.
Travelers issued the first automobile insurance policy in the U.S. in 1897. Fast forward to the 21st century, and Travelers is one of the largest providers of property and casualty insurance products in the U.S. Travelers has an online portal and app through which you can find an agent, pay your premium, and file a claim. It offers new-car replacement coverage if your car is totaled in the first five years of ownership and a specific discount for hybrid/electric cars, making its auto insurance affordable for electric vehicle owners.
Travelers offers multiple discounts you can apply to your new electric vehicle. When you purchase a new car or own a car that is less than three years old, you’ll qualify for a discount as well as new-car replacement coverage. New car replacement coverage from Travelers will replace a vehicle with a brand-new car of the same make and model if you total your car in the first five years of ownership (some insurers offer this type of replacement coverage for the first two or three years).
Travelers provides a specific discount for hybrid/electric car drivers. If you own or lease a hybrid car, you may be eligible for its hybrid car insurance discount.
Like many auto insurance companies, Travelers offers bundling discounts. You can save up to 13 percent on your Travelers car insurance when you purchase home/condo insurance or another policy from Travelers. Travelers also offers a car insurance discount if you own a home or condo, even if you insure it elsewhere. (This discount is not available in California.)
Travelers has been around for 165 years and remains financially solvent. AM Best, the largest credit rating agency in the world specializing in the insurance industry, studies financial stability and sustainability. It gave Travelers an A++ (Superior) financial strength rating, which means Travelers demonstrates a superior ability to meet its ongoing insurance policy and contract obligations.2 To put it simply, Travelers remains solvent and meets its financial obligations to its clients.
WHAT IS DRIVING THE DEMAND FOR ELECTRIC VEHICLES?
Plug-in vehicle sales reached 79,325 in July 2022, a 38 percent increase from July 2021.3 The increase in demand is due to several factors, including climate legislation. The California Air Resources Board (CARB) voted to phase out the sale of new gasoline-powered vehicles in order to cut emissions, resulting in a total ban by 2035.4 The federal government also provides tax credits to people looking to buy new or used electric vehicles.5
Formed by farmers in 1925, COUNTRY Financial began offering auto insurance in 1927. With over 2,000 representatives across 19 states, COUNTRY Financial offers auto, home, farm, business, and life insurance. Along with reasonable auto insurance rates, COUNTRY Financial provides enhanced new-car protection and emergency roadside reimbursement for electric vehicle drivers.
COUNTRY Financial’s standard auto insurance coverage includes bodily injury and property damage liability, uninsured/underinsured motorist, medical payments/personal injury protection, comprehensive, and collision coverage.
COUNTRY Financial offers optional coverage that protects your new car in the event of an accident. It pays for a brand-new car of the same make and model if your car is three to four model years old. This type of coverage is especially relevant to electric vehicle owners because the average electric vehicle in the U.S. is three and a half years old.6
There are plenty of reasons for electric vehicle owners to choose COUNTRY Financial’s auto insurance, including some unique discounts that complement its coverage for electric cars. COUNTRY Financial offers a discount for engaged couples getting married in the next year, as well as an occupation discount for full-time K-12 teachers, firefighters, police officers, EMTs, and paramedics.
has risen to 270 miles on a single charge, with some vehicles getting over 500 miles per charge.7 While there are many benefits to owning an electric vehicle, you may decide to keep a second car for longer drives so you don’t have to make frequent stops to charge your car, or worry about finding a charging station along a less-traveled route. Alternatively, if you own a PHEV or gas-powered vehicle and want to make an eco-conscious choice for a second car, you might purchase a fully electric vehicle.
COUNTRY Financial provides a multi-car discount when you insure two or more cars (including the cars of drivers under 25 who live away from home). This way, you can save even if your electric car is not your primary vehicle.
State Farm is the most popular car insurance provider in the U.S., with over a century of reliable service, extensive coverage, and customizable discounts. You can also manage your custom policy from a user-friendly app. State Farm’s nationwide reach and roadside assistance program make it a solid option for electric vehicle owners.
State Farm offers various discounts to reward safe driving, including their Accident-Free Discount, which rewards drivers who have maintained a clean driving record over a certain period, usually three continuous years. Additionally, their Drive Safe and Save program, which tracks driving behaviors through a mobile app or an in-car plug-in device, provides an initial discount up to 5 percent just for enrolling. Following the data collection period, drivers can earn discounts of up to 30 percent based on their safe driving habits.
State Farm’s auto policy includes an option for emergency road service. Its emergency road service covers services including towing and battery delivery. If your electric car runs out of power or you cannot find a charging station along your route, some roadside service providers have portable electric car chargers. Otherwise, State Farm will help cover the fair cost of towing to the nearest repair location or charging station.
Comprehensive coverage pays to repair or replace a vehicle or accessory that’s stolen or damaged by something other than a collision or rolling. This coverage extends to glass, windshield, and electric vehicle charging station repairs. State Farm’s comprehensive and collision coverage can extend to a charging station installed at your home.
Typically, at-home charging stations run on 110 or 220 volts. You may need an electrician to help install an additional breaker, but an at-home charging station for your electric car won’t impact your energy usage or increase your homeowners’ insurance cost.
Farm Bureau Financial Services grew out of the Iowa State Farm Mutual Insurance Company, founded in 1939, which now boasts over 4,000 field associates. Farm Bureau Financial Services offers auto, home, property, and life insurance services. Auto insurance coverage from Farm Bureau Financial Services includes liability, collision, medical payments, uninsured or underinsured motorist, and comprehensive. Farm Bureau’s extensive safe driving programs and low-mileage discounts offer a unique angle to electric vehicle auto insurance.
Farm Bureau Financial Services offers multiple safe driving discounts, such as Driveology, a usage-based program that allows you to track your driving habits via a small device in your car.
Driveology automatically qualifies you for the Driven to Safety discount and a SafeRide Rewards discount, saving you up to 30 percent on your auto insurance premium. Farm Bureau Financial Services also offers a Young Driver Safety program, meaning you qualify for a discount if you’re under 25.
Farm Bureau Financial Services offers up to a 22 percent discount if you drive your vehicle 7,500 miles or less annually. Similar to pay-per-mile and usage-based car insurance, the low-mileage discount requires tracking your usage. In order to qualify, you will have to measure and report your mileage at the beginning and end of the year. Because electric vehicles require charging every 200 miles on average, they may be better suited for driving close to home. If your daily commute is shorter than 40 miles or you walk, take public transportation, or work from home, you might use your electric vehicle sparingly and take advantage of this discount.
Farm Bureau Member’s Choice offers benefits when you bundle your car, home, boat, or motorcycle insurance policies together. Discounts for bundled car and home insurance include up to 35 percent off your premium when you purchase a new home, roof, protective devices, or customer loyalty credits.
We used the following criteria to select the best insurance companies for electric vehicles:
Electric cars are more expensive to insure compared to gas-powered cars because of the cost of specialized features and replacement parts. The average annual cost of electric car insurance is $2,426, compared to an average of $2,071 for gas-powered vehicles. On average, electric car insurance is 15 percent higher than car insurance for gas-powered vehicles. When determining premium amounts, insurance companies factor in the cost of claims for similar cars. The additional cost for replacement parts, electric vehicle batteries, and specialized repair shops may increase your auto insurance premium.
Electric cars or vehicles (EVs) are less expensive to maintain over time compared to gas-powered vehicles. EVs have no engine, so they don’t need engine services or oil changes. You will have to replace the battery in your electric car periodically, however. While the cost of an electric vehicle may be higher upfront, EV owners save on fuel and maintenance costs.
Electric car batteries are estimated to last between 10 to 15 years. Most manufacturers have a five- to eight-year warranty on their batteries.
Charging costs for electric cars depend on energy costs. According to the U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy, most electric cars travel three to four miles per kilowatt-hour (kWh) of energy. The U.S. Energy Information Administration recorded residential energy costs as an average of 17.6 cents per kWh. That makes the average cost of charging your electric car at home $44 to $58 per 1,000 miles.
There are several reasons why you may choose to get an electric car over a gas-powered vehicle:
Auto Insurers Manage Customer Expectations as Repair Cycle Times Double in Two Years, J.D. Power Finds. J.D. Power. (2023, Oct 26).
https://www.jdpower.com/business/press-releases/2023-us-auto-claims-satisfaction-study
AM Best Affirms Credit Ratings of The Travelers Companies, Inc. and Most Subsidiaries. AM Best. (2023, Jul 20).
https://news.ambest.com/PR/PressContent.aspx?refnum=33582&altsrc=2
Light Duty Electric Drive Vehicles Monthly Sales Updates. Argonne National Laboratory. (2022).
https://www.anl.gov/esia/light-duty-electric-drive-vehicles-monthly-sales-updates
California moves to accelerate to 100% new zero-emission vehicle sales by 2035. California Air Resources Board. (2022, Aug 25).
https://ww2.arb.ca.gov/news/california-moves-accelerate-100-new-zero-emission-vehicle-sales-2035
Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles. U.S Environmental Protection Agency. (2022, Sept 28).
https://www.fueleconomy.gov/feg/taxevb.shtml
Average Age of Vehicles in the US Continues to Rise. Automotive Fleet. (2024, May 24).
https://www.automotive-fleet.com/10222246/average-age-of-vehicles-in-the-us-continues-to-rise
FOTW #1323, January 1, 2024: Top Range for Model Year 2023 EVs was 516 Miles on a Single Charge. Energy.gov. (2024, Jan 1).
https://www.energy.gov/eere/vehicles/articles/fotw-1323-january-1-2024-top-range-model-year-2023-evs-was-516-miles-single
Auto Insurance Discounts. Liberty Mutual.(2022).https://www.libertymutual.com/vehicle/auto-insurance/discounts