10 States Where EV Drivers Pay the Most Money To Insure Their Cars

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As with most cars, the cost of electric vehicle (EV) ownership goes far beyond what you pay at the dealership. You’ll also have to pay insurance and other costs, but you may be shocked to hear that it often costs more money to insure an EV than to insure a gas-powered car due to higher repair costs, maintenance costs and more.

And these costs can vary by location too. Research from Insurify pointed to New Jersey, California, Maryland, Illinois and Arizona as the five most affordable places for EV drivers who don’t want to spend a fortune on EV insurance premiums. 

It’s still more expensive in those states to insure an EV than a gas-powered car, but the gap between these insurance policies is more dramatic in the 10 states on this list.

Also see six ways to cut car insurance costs, according to experts.

Arkansas

Insurify found that Arkansas has a 99% cost difference in insuring an EV instead of a gas-powered car, making it the most expensive state for EV owners. The average annual premium for EVs is $4,817, which is much higher than the $2,415 annual premium that owners of gas-powered cars pay.

Pennsylvania

Pennsylvania comes in No. 2 on Insurify’s list. It also has a 99% cost difference in insuring an EV vs. a gas-powered car. Gas-powered cars have an annual premium of only $2,314 in the state, while EVs have an annual premium of $4,598.

Idaho

Idaho has a 95% cost difference, with the average annual premium for EVs standing at $3,332. Gas-powered cars have an average annual premium of only $1,708. Not many people use EVs in Idaho, per Insurify, but that could change as more Californians move into the Gem State.

Iowa

The cost difference in Iowa is 87%, and severe weather in the state can make insurance even more expensive. The average annual premium for EVs is $3,354, while gas-powered cars have a much more affordable $1,793 average annual premium.

Delaware

Delaware is next on the list, with a 76% cost difference between insurance for EVs and insurance for gas-powered cars. The premiums are also higher in general compared with those of other states on this list. The average annual premium for EVs is a towering $5,840, while owners of gas-powered cars have to deal with an annual average premium of only $3,310.

Louisiana

The cost difference in Louisiana stands at 72%, and due to the risk of hurricanes and tornadoes, insurance premiums are higher here than in most parts of the country. EV owners have to square off against an average annual premium of $5,197, while owners of gas-powered cars have to contend with just a $3,015 average annual premium.

Indiana

There is a 71% cost difference between insuring EVs and insuring gas-powered vehicles, but the state in general has lower premiums. In fact, U.S. News & World Report ranked Indiana No. 7 for the cheapest annual car insurance rates.

The average annual premium for EVs comes to $3,520, while drivers have to pay an average annual premium of only $2,061 for gas-powered cars.

Nevada

Nevada has a 70% cost difference for insuring an EV compared with insuring a gas-powered car. The average annual premium for EVs is currently $5,791, while the average annual premium for gas-powered cars in Nevada is $3,403.

New Mexico

If you want to be an EV owner in New Mexico, you will have to pay an average annual premium of $3,597. However, you’ll have to pay an average annual premium of only $2,117 if you want to buy a gas-powered car. The cost difference for these two insurance policies is 70%.

Florida

Florida is the last state on the list, with a 66% cost difference between the two insurance policies. The state’s frequency of hurricanes and floods results in higher insurance premiums. The average annual insurance premium is $5,283 for EVs and $3,189 for gas-powered cars. 

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