5 EVs That Cost More To Insure Than Their Gas-Powered Alternatives
Written by
Josephine Nesbit
Edited by
Zuri Anderson
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The cost of auto insurance has stayed steady over the past year, but electric vehicle (EV) owners aren’t seeing the same trend. According to Insurify’s auto insurance report, premiums for EV drivers jumped 16% in the last 12 months.
On average, EV drivers now pay $4,058 per year to insure their cars — about 49% more than gas-powered drivers, who pay roughly $2,732 annually. The higher costs are often tied to pricier repairs and the replacement of EVs, as premiums reflect the risk and expense of paying out claims, Insurify noted.
Not every EV carries a higher premium, but Insurify’s data shows that several popular models stand out as being much more expensive to insure.
Tesla Model X
- EV insurance cost: $4,765
- Gas counterpart insurance cost: $2,889
The Tesla Model X, a luxury SUV with falcon-wing doors, tops the list. Not only is it one of Tesla’s most expensive models — the 2025 has a starting sticker price of $86,880, according to Kelley Blue Book (KBB) — but it’s also the priciest to insure. Its gas-powered alternative, the Audi Q3, costs nearly 65% more to insure, per Insurify data.
Tesla Model 3
- EV insurance cost: $4,546
- Gas counterpart insurance cost: $3,592
The Tesla Model 3 is the most affordable Tesla and one of the company’s best-selling models, according to KBB, with a starting price of $44,130. However, insurance costs may eat into those savings. The gas-powered alternative, which is the Mercedes-Benz A-Class, costs 21% less than the Tesla Model 3.
Tesla Model Y
- EV insurance cost: $4,189
- Gas counterpart insurance cost: $2,915
Although the Tesla Model S is more expensive to insure than the Model Y, according to Insurify, the Model Y has a claims frequency of 29.47% compared to 5.22% for the Model S, Insurify reported, citing data from auto insights company Mitchell.
The Tesla Model Y has a starting price of $46,880, KBB reported, but Insurify noted that it’s nearly 44% more expensive to insure than the Audi Q5.
Cadillac Lyriq
- EV insurance cost: $3,752
- Gas counterpart insurance cost: $2,671
The first non-Tesla EV on the list is the Cadillac Lyriq, a luxury EV with a starting price of $60,090, KBB reported. Its gas-powered alternative is the Cadillac XT5, another luxury SUV, but it costs about 29% less to insure than the Lyriq, according to Insurify.
Hyundai Ioniq 5
- EV insurance cost: $3,503
- Gas counterpart insurance cost: $2,621
The Hyundai Ioniq 5, with a starting price of $44,100, won KBB’s Best Buy Award in the EV class two years in a row. However, drivers pay 34% more for insurance compared to the Hyundai Kona, its gas-powered alternative, per Insurify data.
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