5 States Where EV Drivers Pay the Least Money To Insure Their Cars

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Electric vehicles typically cost more to insure than their gas-powered counterparts. This is because EVs are generally more expensive vehicles to begin with, and their repairs can be costly as well. But if you shop on a state-by-state basis, you’ll see that there can be large differences between the cost of insuring an EV in one state versus another, due to a number of factors.

Here’s a look at which states offer the lowest average insurance premiums for EVs, both on an absolute basis and on a relative basis.

Lowest Average EV Insurance Premiums by State

According to insurance directory Agency Height, here are the the states with the lowest average EV insurance premiums:

• North Carolina: $105 per month or $1,260 per year
• Ohio: $119 per month or $1,428 per year
• Hawaii: $121 per month or $1,452 per year
• Idaho: $122 per month or $1,464 per year
• Maine: $130 per month or $1,560 per year

These states compare very favorably with Florida, which has the highest EV insurance premiums in the country. According to Agency Height, EV premiums in Florida can run from $313 to $782 monthly, or a whopping $3,756 to $9,384 annually.

Lowest EV Premiums Relative to Gas-Powered Vehicles

In many states, you’ll have to pay a significant premium to insure an EV as opposed to a gas-powered vehicle. But various factors, including EV incentives and popularity, help hold down EV insurance costs on a relative basis.

According to insurance comparison website Insurify, these are the five states with the lowest markup on EV insurance, relative to that for gas-powered vehicles:

1. New Jersey

• Cost difference of insuring an EV versus a gas-powered car: 15%
• Average annual premium for EVs: $3,563
• Average annual premium for gas-powered cars: $3,095

2. California

• Cost difference of insuring an EV versus a gas-powered car: 31%
• Average annual premium for EVs: $3,827
• Average annual premium for gas-powered cars: $2,924

3. Maryland

• Cost difference of insuring an EV versus a gas-powered car: 35%
• Average annual premium for EVs: $6,142
• Average annual premium for gas-powered cars: $4,555

4. Illinois

• Cost difference of insuring an EV versus a gas-powered car: 37%
• Average annual premium for EVs: $3,342
• Average annual premium for gas-powered cars: $2,447

5. Arizona

• Cost difference of insuring an EV versus a gas-powered car: 37%
• Average annual premium for EVs: $3,043
• Average annual premium for gas-powered cars: $2,221

By way of comparison, states on the other side of the spectrum, like Arkansas and Pennsylvania, have a 99% markup on EV insurance.

Why the Differences?

Insurance may seem like it should be a relatively stable cost, but the differences from state to state can actually be enormous. There are a few explanations for this, according to the Insurance Information Institute: 

• Cost and frequency of litigation: If an insurance company is more likely to be sued, it has to raise prices to cover this additional cost.
• Medical care and car repair costs: If it’s going to cost an insurance company more money to pay out a claim, it will have to increase premiums as well.
• Prevalence of auto insurance fraud: Fraud is expensive, and the insurance company is the one that’s usually on the hook. This increases the cost of providing insurance.
• Weather trends: If a state is prone to natural disasters, insurance companies have to pay out more claims.

Other factors can also play a role in insurance pricing. Areas with lower population density, for example, have less traffic, which in turn leads to fewer accidents. There are also generally lower incidents of theft. When it comes to EVs in particular, states with more EV- and consumer-friendly regulations can help lower the cost to insurers.

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