Electric Cars and Insurance: What’s Different?
Thinking of switching to an EV? Learn how electric car insurance works, what makes it different from gas-powered vehicles, and how to save in 2025.
EVs Are Changing the Road—and Insurance
Electric vehicles (EVs) are no longer a futuristic trend—they're a fast-growing reality. With brands like Tesla, Ford, and Hyundai expanding their electric offerings, millions of Americans are making the switch. But while EVs promise lower fuel and maintenance costs, many new owners overlook a key change: insurance works a little differently.
From pricing to specialized coverage, here’s what you need to know about insuring an electric car in 2025.
1. EV Insurance Costs More—But Not for the Reason You Think
On average, electric cars cost more to insure than comparable gas-powered vehicles. Why?
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Higher repair costs: EVs have complex electronics and battery systems that require trained technicians and specialized parts.
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Pricier parts: A damaged battery can cost $5,000–$15,000+ to replace.
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Limited repair shops: Fewer certified EV repair centers can drive up labor rates.
