x
Breaking News
More () »

Insurance for electric vehicles is more than gas-powered cars. Here's why

With electric vehicles gaining popularity, some people are concerned their gasoline savings could go to higher insurance premiums.

CHARLOTTE, N.C. — As electric vehicles grow in popularity across the U.S., some people are wondering just how cost-effective ditching a gas-powered car can be. 

According to a study from the U.S. Department of Energy, more than 1 million electric vehicles were registered nationwide in 2021. But is it really a better deal to go electric? 

This led WCNC Charlotte viewer Kathy to ask this question:

"Is car insurance more expensive for a new electric car?"

There are a lot of different coverage options when it comes to car insurance, if it’s a new car, people will usually buy collision and comprehensive insurance on that vehicle. 

Click here to sign up for the daily Wake Up Charlotte newsletter

So to answer Kathy’s question, WCNC Charlotte's VERIFY team is looking at whether collision and comprehensive insurance are more expensive for a new electric car.

OUR SOURCES

  • Barry Smith, deputy director of communications/safety officer of the North Carolina Department of Insurance 
  • USAA

OUR ANSWER 

Yes, coverage for electric vehicles is more expensive than a gas-powered car if you add collision and comprehensive insurance. 

This is true.

WHAT WE FOUND 

Smith confirmed that liability insurance for EVs and gas-powered cars will likely cost about the same, but there could be a difference if you add more coverage.

He told WCNC Charlotte the following via email:

"Since a number of EVs cost more than their corresponding gasoline-powered vehicles, premiums for collision and comprehensive portions of their insurance could be higher."

According to USAA, if you have two cars that are identical in every way except one is electric and the other is gas-powered, it would likely cost more to carry comprehensive or collision insurance on the electric vehicle.

USAA says it all comes down to the cost of claims for electric or hybrid vehicles. EVs have parts that are most expensive to repair and replace.

But don’t let this scare you away from buying an EV. USAA said EV owners save money on gas, of course, but also on upkeep.

According to a Consumer Reports study, EV owners can expect to save an average of $4,600 on repair and maintenance costs over the lifetime of the car.

USAA also said that even if your premium rises with an EV, your final cost could actually be offset by special savings and discounts for hybrid and electric vehicles.

VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit VERIFY.

Before You Leave, Check This Out