Why EV Insurance Costs More: What the Claim Data Shows, and What You Can Control
You got a quote for an electric car and it came back higher than the gas car you are replacing. Is that because EVs crash more, because they cost more to fix, or because they simply cost more to buy? The insurance industry's own loss data gives a more specific answer than most articles do. This guide is part of our car insurance cost guide.
Key takeaways
- In the Highway Loss Data Institute's matched comparison of EVs and their gas versions, EVs had 20% fewer collision claims and 19% lower collision losses after adjusting for mileage.
- The claim cost per crash was about the same overall, but HLDI found collision claims on new EVs cost a significant 12% more than on their gas twins.
- Much of an EV's higher premium tracks its price and its repair cost. Triple-I lists the car's cost, repair cost, safety record and theft likelihood as rating factors.
- You control the deductible, the exact model you buy, and how many quotes you compare.
Do electric cars actually cost more to insure?
Often, yes, but the reason matters. Insurers price collision and comprehensive coverage on what it costs to repair or replace your car, and liability on what your car tends to do to other people. Triple-I says "the cost of your car is a major factor in the cost to insure it," along with the likelihood of theft, the cost of repairs, engine size and the car's safety record.
That means two different questions get mixed together:
- Is an EV more expensive to insure than the same car with a gas engine?
- Is an EV more expensive to insure than the cheaper gas car you drive now?
The data answers the first one. The second one is mostly about price and model.
What does HLDI's claim data show about EVs?
The Highway Loss Data Institute, an insurer-funded research group that analyzes claims data, has compared electric vehicles with their exact conventional counterparts since 2015. Its December 2020 bulletin covered model years 2012 to 2020 and controlled for how far each car is driven, using mileage data.
| Coverage | Claim frequency vs. gas version | Claim severity vs. gas version | Overall losses vs. gas version |
|---|---|---|---|
| Collision (damage to your car) | 20% lower | 1% higher (not statistically significant) | 19% lower |
| Property damage liability (damage you cause) | 17% lower | 3% higher | 14% lower |
| Bodily injury liability | 22% lower | Not reported | Not reported |
| Personal injury protection | 40% lower | Not reported | Not reported |
| Medical payments | 41% lower | Not reported | Not reported |
Source: HLDI Bulletin Vol. 37, No. 25, December 2020. Frequency and overall losses control for mileage; severity does not.
In plain terms: the electric version of the same car was in fewer claims, and when it was, the average repair bill was close to the gas version's. HLDI said the extra claim severity it saw for EVs in its earlier studies "has attenuated over time," and that the collision difference was "no longer statistically significant."
Two findings cut the other way:
- New EVs cost more to fix. HLDI found collision claim severity for new electric vehicles was a significant 12% higher than for their gas counterparts. The gap shrank as the cars aged.
- Front-end damage costs more. HLDI reported average front-impact collision claims of $5,540 for EVs against $5,257 for their gas counterparts.
Read the comparison carefully: HLDI's matched pairs were mostly mainstream models sold in both gas and electric versions. An expensive purpose-built EV is not in that comparison, and its premium reflects its own price, parts and repair network. Use the HLDI results to answer "does the battery itself make insurance cost more," not "why does my luxury EV cost more than my old sedan."
Why do EVs cost more to repair?
Triple-I, summarizing a Swiss Re Institute report in June 2024, said a 2022 U.S. study found total repair costs for EVs averaged 26.6% higher than for gas vehicles. Swiss Re pointed to several causes:
- The main engine and battery typically sit at the front of the vehicle, an area prone to damage in a collision.
- EVs carry more sensors, cameras and radar, which add cost when damaged.
- Software and driver assistance systems mean more labor time for diagnostics and calibration.
- Integrated designs make many EVs harder and slower to repair.
Parts prices can be steep. In its May 2024 presentation to state regulators at the NAIC, HLDI showed a single GMC Hummer EV taillight priced at $3,045.48, or more than $7,000 including labor.
Sensors are not unique to EVs. In an August 2026 IIHS-HLDI article, Matt Moore wrote that vehicles with a bundle of crash avoidance features had about 10% higher collision claim severity, but about 10% fewer collision claims, leaving overall collision losses about 5% lower. Expensive parts and fewer crashes can net out.
Are EVs more likely to be totaled or catch fire?
HLDI's 2024 presentation to the NAIC suggests not, compared with gas counterparts:
- Total losses: total losses made up 18.3% of collision claims for EVs against 23.9% for conventional counterparts.
- Share of collision dollars: total losses accounted for 48.4% of EV collision dollars paid, against 52.9% for conventional counterparts.
- Non-crash fires: across the paired models HLDI listed, EVs had 1.7 non-crash fire claims per 10,000 insured vehicle years, against 2.3 for their conventional counterparts.
HLDI's 2020 bulletin made the same point on totals: conventional vehicles, "when involved in a crash, they are much more likely to be a total loss than electric vehicles."
What can you control about EV insurance cost?
You cannot change how insurers price your model, but you can change several inputs.
1. Your deductible. Triple-I says raising the deductible from $200 to $500 could reduce collision and comprehensive cost by 15 to 30 percent, and a $1,000 deductible can save 40 percent or more. Only do this if you could pay that amount tomorrow. Our guide to a $500 vs. $1,000 deductible works through the trade-off.
2. The model, before you buy. Triple-I advises checking insurance costs before you buy a car. IIHS publishes insurance losses by make and model, showing how each vehicle's collision, property damage liability and comprehensive losses compare with the average, adjusted for driver age, state and other non-vehicle factors. Two EVs at the same price can sit on opposite sides of average.
3. What coverage you carry. If the car is financed or leased, the lender will set requirements. If you own it outright, see what full coverage covers before deciding which pieces you need.
4. Discounts for equipment. New York's Department of Financial Services notes that some insurers offer discounts for collision avoidance systems such as lane assist or brake assist, and for anti-theft devices. Ask for each one by name.
5. More than one quote. Triple-I says to get at least three quotes. Prices vary from company to company, and Triple-I notes that a company offering few discounts may still have a lower overall price.
FinanceRazor may be paid when you request quotes through this link. This does not change what we report.
Frequently asked questions
Why is Tesla insurance so expensive?
HLDI's public matched-pair numbers do not single out any one brand. What drives cost for any expensive EV is its purchase price, parts and repair cost, which Triple-I lists as rating factors. Check the model's results in the IIHS insurance losses tables before buying.
Do EVs get into more accidents?
Not in HLDI's matched U.S. comparison. Controlling for mileage, EVs had 20% fewer collision claims and 17% fewer property damage liability claims than the same models with gas engines.
Does EV battery damage total the car?
HLDI's data showed total losses were a smaller share of collision claims for EVs (18.3%) than for their gas counterparts (23.9%). Individual claims vary, and battery damage can be expensive.
Will EV insurance get cheaper as cars age?
HLDI found the extra collision severity for EVs was largest on new cars and shrank as vehicles aged.
Is a hybrid cheaper to insure than an EV?
It depends on the model and price. Run the IIHS make-and-model check and get quotes on both before you decide.
Sources
- Highway Loss Data Institute, "Insurance losses of electric vehicles and their conventional counterparts while adjusting for mileage," Bulletin Vol. 37, No. 25, December 2020, https://www.iihs.org/media/ca2618fc-c875-4246-8a9f-5977f3b702f6/Ewxm_A/HLDI%20Research/Bulletins/hldi_bulletin_37-25.pdf, accessed October 1, 2026.
- Matt Moore, Highway Loss Data Institute, "The impact of EVs on auto insurance and auto safety," presentation to the NAIC Casualty Actuarial and Statistical Task Force, May 28, 2024, https://content.naic.org/sites/default/files/call_materials/CASTF%20Book%20Club_EV%20Presentation%2020240528.pdf, accessed October 1, 2026.
- Matt Moore, IIHS-HLDI, "How crash avoidance tech simultaneously raises and slashes repair costs," August 11, 2026, https://www.iihs.org/news/detail/how-crash-avoidance-tech-simultaneously-raises-and-slashes-repair-costs, accessed October 1, 2026.
- IIHS-HLDI, "Insurance losses by make and model," https://www.iihs.org/research-areas/auto-insurance/insurance-losses-by-make-and-model, accessed October 1, 2026.
- Insurance Information Institute, "Growing EV Insurance Market Faces Profitability Challenges: Swiss Re," June 5, 2024, https://www.iii.org/blog/growing-ev-insurance-market-faces-profitability-challenges-swiss-re, accessed October 1, 2026.
- Insurance Information Institute, "What determines the price of an auto insurance policy?," https://www.iii.org/article/what-determines-the-price-of-an-auto-insurance-policy, accessed October 1, 2026.
- Insurance Information Institute, "Nine ways to lower your auto insurance costs," https://www.iii.org/article/nine-ways-to-lower-your-auto-insurance-costs, accessed October 1, 2026.
- New York State Department of Financial Services, "Auto Insurance Information for Consumers," https://www.dfs.ny.gov/consumers/auto_insurance, accessed October 1, 2026.
This page is general information, not insurance advice. Prices depend on the insurer, your state, your vehicle and your record.