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Last updated: February 10, 2023The Best Auto Insurance for Electric Cars
Go green and save with the best value auto insurance for your electric car.
Best Overall
Auto-Owners Insurance offers the lowest average annual cost of auto insurance for electric cars at $1,500.
Best for New Car Owners
While Travelers offers a slightly higher average annual cost for electric car insurance ($1,584), the company provides several discounts that may be helpful if you are an electric or hybrid vehicle owner.
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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.
The Best Auto Insurance for Electric Cars
- 1.
Best Overall Auto Insurance for Electric Cars: Auto-Owners
- 2.
Best Auto Insurance for New Electric Car Owners: Travelers
- 3.
Best Electric Car Insurance for Teachers and Emergency Responders: COUNTRY Financial
- 4.
Best Auto Insurance for Safe Drivers With Electric Cars: State Farm
- 5.
Best Auto Insurance for Farm Bureau Members With Electric Cars: Farm Bureau Financial Services
Comparison of the Best Auto Insurance for Electric Cars
Before you can compare EV insurance plans, it’s important to understand wh
| Provider | What it’s best for | Year founded | Customer satisfaction rating (out of 1,000) (J.D. Power)1 | Discounts available | Average annual cost of insurance for an electric vehicle | Review |
|---|---|---|---|---|---|---|
| #1. Auto-Owners | Overall | 1916 | 871 | Multi-policy, good payer, paperless billing, safety features, student discounts | $1,500 | Coming soon |
| #2. Travelers | New-car owners | 1853 | 860 | Driver training, good student, hybrid/electric auto, multi-policy, student away | $1,584 | Travelers review |
| #3. COUNTRY Financial | Teachers and emergency responders | 1925 | 868 | Multi-policy, legacy, engaged couple, good student, good driver, advanced quote | $1,728 | Coming soon |
| #4. State Farm | Safe drivers | 1922 | 848 (ranked first in the Southwest) | Accident-free, defensive driver course, multi-car, student away from home | $1,744 | State Farm review |
| #5. Farm Bureau Financial Services | Farm Bureau members | 1939 | 876 (ranked first in the Southeast for the 11th consecutive year) | Member’s Choice (home and auto bundle), safe driving, claim-free, good student, low-mileage, multi-car, loyalty | $1,788 | Coming soon |
SPOT THE DIFFERENCE:
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.
Detailed List of the Best Auto Insurance for Electric Cars
1. Best Overall Auto Insurance for Electric Cars - Auto-Owners
What We Like Most:
- Classic car and converted or modified cars covered
- Roadside assistance and gap coverage available
- Save by enrolling in paperless billing
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 $1,500, making it the cheapest auto insurance for electric vehicles on average. Auto-Owners Insurance also offers safety feature discounts that benefit new car owners, including electric vehicle owners.
Who It's Best For- On-time payers (over the last 36 months)
- New-car owners
- Frequent rental car users
- Good students and their parents
Who It's Not Best For
Drivers in the Northeast and Western regions of the United States- Frequent users of online and mobile tools
Auto-Owners Standard Coverage
Standard auto insurance coverage for gas and electric vehicles from Auto-Owners Insurance includes:
- Collision
- Comprehensive
- Bodily injury and property damage liability
- Uninsured/underinsured motorist
- Medical payments/personal injury protection
- Roadside assistance
- Additional expense coverage for rental car payments in the event of an accident
- Loan/lease gap insurance
- Diminished value coverage, also known as guaranteed asset protection (GAP) insurance, which compensates you for a reduction in the value of your car after an accident or damage
- Personal Automobile Plus Package, which includes 10 additional coverages, such as identity theft, lock rekeying, and cell phone replacement.
Safety Feature Discounts
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.
Good Student Discounts
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.
Rental Car Coverage
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.
2. Best Auto Insurance for New Electric Car Owners - Travelers
What We Like Most:
- High financial strength rating from AM Best
- Great customer service reviews
- Discounts for safe drivers, homeowners, electric vehicle owners, and more
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.
Who It's Best For- Hybrid car owners
- New-car owners
- Good payers
- Homeowners (even if not insured with Travelers)
Who It's Not Best For- Rideshare drivers outside of Illinois and Colorado
- Drivers in Alaska, Hawaii, Louisiana, North Dakota, South Dakota, West Virginia, and Wyoming (no coverage)
Discounts for New Hybrid/Electric Car 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). Learn more about insurance for new cars specifically.
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.
Enhanced Benefits for Homeowners
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.)
Financial Strength
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
3. Best Electric Car Insurance for Teachers and Emergency Responders - COUNTRY Financial
What We Like Most:
- Get a discount for taking a Simply Drive course
- Local reps can help you customize coverage
- Discounts for teachers, police officers, firefighters, and more
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.
Who It's Best For- Engaged couples
- Full-time K-12 teachers, firefighters, police officers, EMTs, and paramedics
- Good students and college graduates
- People who own multiple cars
Who It's Not Best For- Drivers who don’t live in Alabama, Alaska, Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nevada, North Dakota, Oklahoma, Oregon, Tennessee, Washington, and Wisconsin
- People with bad or no credit
Enhanced New Car Protection
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 between three and four years old.6
Unique Discounts
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.
Multi-Car Discount
According to the Environmental Protection Agency (EPA), the median electric vehicle range is 234 miles on a single 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.
4. Best Auto Insurance for Safe Drivers With Electric Cars - State Farm
What We Like Most:
- Local agents
- Rideshare insurance available
- Discounts for having multiple cars
State Farm is the most popular car insurance provider in the U.S. and our pick for the best auto insurance of 2022. It has a century of reliable service, boasting 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.
Who It's Best For- Accident-free drivers
- Drivers whose cars have the latest safety features
- People who want to pay premiums through a mobile app
- Drivers in the Southwest region, where State Farm ranks highest for customer satisfaction
Who It's Not Best For- Federal employees (no discount)
- People who experienced multiple at-fault accidents (more competitive rates elsewhere)
- Drivers looking for the cheapest auto insurance
Emergency Road Services for Electric Vehicles
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.
Coverage for Home Charging Stations
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.
Anti-Theft Device Discount
You’re eligible for an anti-theft discount from State Farm if your car has an alarm or approved anti-theft device like a steering wheel lock, remote disabling system, or vehicle tracking system. You’ll need to contact your agent to determine the specific discount for your features. Usually, electric vehicles feature high-tech anti-theft technology, so you’ll be safer from auto theft and save money with this discount.
5. Best Auto Insurance for Farm Bureau Members With Electric Cars - Farm Bureau Financial Services
What We Like Most:
- Insurance for cars, motorcycles, RVs, and farm vehicles
- Save money with usage-based insurance, up to 30 percent for good drivers
- Discounts available if you drive 75,000 miles or less per year
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.
Who It's Best For- Safe drivers
- New drivers or drivers under the age of 25
- New-car owners
- Farm and ranch owners
Who It's Not Best For- People who want to do business via mobile app
- Non-Farm Bureau members
- Drivers looking for the cheapest auto insurance
Safe Driving Discount Bundle For Teens and Beyond
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.
Low-Mileage Discount for Local Drivers
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.
Bundle With Farm Bureau Member’s Choice
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.
Methodology
We chose the best auto insurance providers for electric cars using a three-pronged approach:
- Company information: We analyze the discounts and coverages available for electric car owners directly from each auto insurance company. We also consider third-party customer satisfaction and financial strength ratings from AM Best, the Better Business Bureau, J.D. Powder, Moody’s, the National Association of Insurance Commissioners, and Standard & Poor’s.
- Proprietary data: AutoInsurance.com has connected people to car insurance providers for over 20 years. In that time, we have collected millions of data points related to car insurance transactions. We analyze our data to determine which types of customers have the best experiences with certain companies, allowing us to specify the target demographic for each company. These analytics save our customers time by eliminating auto insurance companies that don’t have the right coverage for electric vehicle owners.
- Institutional knowledge: We’ve amassed over two decades of institutional knowledge about each insurance provider’s strengths and weaknesses. We consult with Paul Ford, the president of insurance services at Centerfield, AutoInsurance.com’s parent company. Paul has nearly three decades of experience in the insurance industry, having worked at Canadian Access, Inslogic, Capital One Insurance Services, NetQuote, Bankrate, and Datalot. We leverage Paul’s extensive knowledge about car insurance to help customers find the perfect policy to cover their electric car.
FAQ
Are electric cars more expensive to insure?
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.
Are electric cars more expensive to maintain?
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.
How long do electric car batteries last?
Electric car batteries are estimated to last between 10 to 15 years. Most manufacturers have a five- to eight-year warranty on their batteries.
How much does it cost to charge an electric car?
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 14.92 cents per kWh. That makes the average cost of charging your electric car at home $37.30 per 1,000 miles.
Why should I get an electric car?
There are several reasons why you may choose to get an electric car over a gas-powered vehicle:
- Fewer harmful emissions: Electric vehicles and hybrid cars produce fewer harmful emissions than gas vehicles, improving air quality.
- Lower maintenance costs: Electric cars require less maintenance and have lower running costs than gas-powered vehicles because you don’t have to pay for gas or service the engine.
- Faster acceleration: Electric cars can accelerate faster than traditional gas-powered vehicles.
Citations
Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds.. J.D Power. (2022, Jun 13).
https://www.jdpower.com/business/press-releases/2022-us-auto-insurance-studyA.M. Best Affirms Credit Ratings of The Travelers Companies, Inc. and Its Main Subsidiaries. AM Best. (2018, Oct 31).
https://news.ambest.com/newscontent.aspx?refnum=212834&altsrc=23Light Duty Electric Drive Vehicles Monthly Sales Updates. Argonne National Laboratory. (2022).
https://www.anl.gov/esia/light-duty-electric-drive-vehicles-monthly-sales-updatesCalifornia 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-2035Federal 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.shtmlAverage Age of Vehicles in the US Increases to 12.2 years, according to S&P Global Mobility. IHS Markit. (2022, May 23).
https://ihsmarkit.com/research-analysis/average-age-of-vehicles-in-the-us-increases-to-122-years.htmlFOTW #1220, January 10, 2022: In Model Year 2021 the Electric Vehicle with the Longest Range Reached 405 Miles on a Single Charge. Energy.gov. (2022, Jan 10).
https://www.energy.gov/eere/vehicles/articles/fotw-1220-january-10-2022-model-year-2021-electric-vehicle-longest-rangeAuto Insurance Discounts. Liberty Mutual.(2022).https://www.libertymutual.com/vehicle/auto-insurance/discounts
Auto Insurance Quotes. USAA. https://www.usaa.com/inet/wc/auto-insurance?akredirect=true
Auto Insurance Discounts. USAA. https://www.usaa.com/inet/wc/auto-insurance-discounts
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