Why electric vehicles cost more to insure

Electric vehicles often cost more to insure mainly because the physical damage claims are more expensive: the cars cost more to begin with, repairs need specialized labor and mostly factory parts, and damage near the battery pack can turn a moderate crash into a total loss. Other factors push the other way. EVs are stolen far less often than average, and their driver-assistance features prevent some crashes. The net effect varies a lot by model, which is why quotes for two EVs at the same price can differ widely.

Where the extra cost shows up

Your premium is a bundle of coverages, and an EV changes some more than others.

Insurers price each model using its own loss experience, often summarized in a vehicle symbol. A popular EV with a few years of claims data may be priced quite differently from a brand-new model the insurer has little data on.

Repairs cost more, and data shows how much

A Mercury Insurance claims executive, writing in Claims Journal in December 2024, cited Mitchell data comparing EVs with their gasoline twins (Claims Journal):

The same article points to the reasons: high-voltage safety procedures add labor time (it says Ford requires removing the Lightning's battery for some paint work), aluminum and composite panels are often replaced rather than repaired, and aftermarket parts for EVs are scarce, so OEM parts dominate. Mitchell's 2025 data, reported by Claims Journal in February 2026, found OEM parts made up roughly 86% of parts dollars in battery-electric repairs (Claims Journal).

The gap is not fixed. The same Mitchell report found the average severity of repairable battery-electric claims fell 5% in the U.S. in 2025, and the Mercury executive argued the cost gap is narrowing as EV prices fall and insurers gather more data.

Batteries and total losses

The battery pack is the most expensive single part of most EVs. Reuters, in a 2023 report republished by Claims Journal, said battery packs can represent up to 50% of an EV's price, and that insurers sometimes write off lightly damaged EVs because they cannot assess the cells inside (Claims Journal). Yet battery damage is uncommon: the Mercury executive put it at less than 1% of EV claims. The cost comes from the rare claims that do touch the pack. See EV battery damage and insurance claims for how those claims work.

What pulls EV premiums down

• Low theft. In its 2025 analysis of 2022-24 models, the Highway Loss Data Institute found that the 20 least-stolen vehicles included eight electric vehicles and two plug-in hybrids, all with whole-vehicle theft claim frequencies more than 85% below the all-vehicle average. HLDI suggests EVs are often garaged or parked near buildings to charge (IIHS-HLDI).
• Crash avoidance features. EVs tend to come loaded with automatic emergency braking and other systems. HLDI data show vehicles with a bundle of these features file fewer claims, even though each repair costs more; see driver-assistance sensors and the cost of repairs.

Repair time and rental costs

Fewer shops are equipped and certified to repair EVs, and parts are more often sourced from the manufacturer. Liberty Mutual notes that EV repairs can take longer and suggests rental reimbursement coverage for that reason (Liberty Mutual). Longer repairs mean more rental days on each claim, which is another cost insurers build into EV pricing and a reason to check your own rental limits.

Weight and liability

Many new electric SUVs and pickups are heavy. IIHS noted in 2023 that the first EV it crash-tested, a 2011 Nissan Leaf, weighed 3,339 pounds, while many current EVs exceed 6,000 pounds, and that in a collision the heavier vehicle pushes the lighter one backward, raising forces on the people in the lighter car (IIHS). HLDI's loss data show that losses for damage to other vehicles generally rise with vehicle size (IIHS-HLDI). That is a liability cost, and it applies to heavy gasoline trucks as well as EVs.

How to price an EV before you buy

1. Quote the exact trims you are considering, with your VIN-level details if the dealer will share them. Use the car insurance quote comparison worksheet to keep limits identical.
2. Compare models, not just insurers. Some insurers publish lists of affordable EVs to insure. Mercury published its 10th annual list in 2025, based on claims for similar vehicles, repair costs and safety records (Insurance Journal).
3. Ask about EV-specific options, such as coverage for home charging equipment or mobile charging on roadside calls.
4. Ask which shops will fix it. A network with EV-certified technicians can shorten repairs and avoid disputes.
5. Price the deductible. A higher collision deductible can offset some of the EV surcharge if you can afford it.
6. Check manufacturer insurance. Some automakers sell insurance in certain states, such as Tesla; see Tesla Insurance and real-time driving data.

For the broader approach, see check insurance costs before you buy a car.

Key takeaways

• EV premiums run higher mainly because collision repairs cost more and more claims end in total losses.
• Mitchell data cited by Mercury showed an F-150 Lightning repair averaging $7,133 versus $6,200 for the gas F-150.
• Battery damage is rare, under 1% of EV claims by one insurer's estimate, but very expensive when it happens.
• EVs are among the least-stolen vehicles, which helps the comprehensive part of the premium.
• Quote specific models before buying; the difference between two EVs can exceed the difference between insurers.