On average, electric vehicles continue to be a lot more expensive than gas-powered models, including hybrids.
Based on Consumer Newspaper, citing national average data from The Zebra, an insurance comparison tool, the Chevrolet Bolt EV costs slightly more to insure than the Toyota Prius or the Hyundai Ioniq Blue hybrid. The Tesla Model 3 has 20% higher annual insurance costs (about $500) than the BMW 3-Series or Audi Q4. And a Tesla Model S has approximately 12% more insurance (about $400 more) than a BMW 7-Series or Audi A8.
Chevrolet Bolt EV 2019
By brand, the divide is much more pronounced. Zebra points out that Tesla is second only to Maserati in terms of annual insurance costs – a whopping $3,419, more than double the average for several mainstream brands including Jeep, Volkswagen and Subaru . However, it is not mentioned whether these results are normalized for the age or model year of the cars covered.
The battery replacement costs soar in a collision there might be something to do with that. EQUAL Reuters discovered last month, in what is expected to be a circular economy, battery packs are piling up in some markets (or countries) as car manufacturers fail to provide guidance or how to open and repair battery packs.
So instead, insurance companies often have to pay for the cost of a completely new package — in many cases costing more than $20,000 — or cancel the vehicle. And statistically, that end result is a choice more often for electric vehicles than other vehicles, according to CR. This continues the cycle of accelerating EV premiums instead of reducing them.
Decisions around manufacturability may play a role. For instance, Tesla is said to have integrated a non-repairable structural package to the Texas-made Model Y. accessible at all.
Tesla Model 3 2019 – IIHS Side Crash Test
Tesla offers its own coverage, and according to the company, it’s currently available in Arizona, California, Colorado, Illinois, Maryland, Minnesota, Nevada, Ohio, Oregon, Texas, Utah, and Virginia. Tesla Insurance based on proprietary safety scores, based on 30-day mileage averages and, in some states, actual driving behavior. Rivian also founded his own insurance company program in 2021, with several third-party underwriters, then said it would be offered in 40 states. Porsche also experimented with the EV insurance for its Taycan.
With electric car prices starting to fall, and some, like Tesla Model Y, now priced lower than average up front, it’s worth remembering that Electric vehicles cost less to operate—especially in the face of high gas prices—compared to gas-powered cars, with insurance being an exception.
Nissan Leaf 2023
In the end, there is hope for a price cut, and as one model has demonstrated, it may just be a matter of supplying enough vehicles for automakers and service departments to understand the nuances of such repair. CR refers to the Nissan Leaf, which has been widely available for over a decade, as an example because the cost of insurance per year is $35 less than the Prius.
