Car Insurance for Hybrid and Electric Cars

Is insurance more expensive for an electric car?

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Hybrid and electric car insurance: does it cost more?

Because of their unique parts and service needs, hybrid and electric vehicles still usually cost more to insure than gas-powered cars. As such, it’s important to price shop to find the cheapest car insurance rates for your eco-friendly vehicle. Let’s look at insurance premiums from major providers for some of the most popular green vehicles.

Hybrid and electric vehicles are changing the current landscape of automobiles. Purely electric cars, in particular, are overcoming mileage and affordability limitations to become more accessible to the average driver. More robust networks of charging stations are increasing the distance drivers can go, making the concept of purely electric cars more enticing. 

 

Insuring electric vehicles — table of contents
  1. Cheapest car insurance companies for green vehicles
  2. Is car insurance different for EVs vs. gas-powered vehicles?
  3. Money-saving tips
  4. Additional resources

 


 

Hybrid and electric car insurance rates

Because insurance is designed to cover the value of your car, vehicles with high list prices — including many hybrid cars or EVs — bring higher insurance premiums. We've collected the average annual insurance costs for some popular hybrid vehicles and EVs by insurance company.

 

EV insurance rates

Each year sees new entries to the electric car market. Many major auto manufacturers are offering electric versions of their most popular models. Below you’ll find average insurance rates for commonly available electric vehicles. We’ve listed prices from popular insurance companies along with overall average rates.

 

Tesla Model S

The Tesla Model S brought electric vehicles to the public’s attention, making the idea of a purely electric car seem attainable. However, it is also one of the highest-priced electric vehicles currently on the market, with an MSRP starting at $75,000. Of the vehicles listed here, it costs the most to insure. The yearly average to insure a Tesla Model S is $2,857. The lowest rates among the eight insurance companies listed come from USAA.

 

ANNUAL INSURANCE RATES: TESLA MODEL S
CompanyPremium
Allstate$5,054
GEICO$3,383
Farmers$5,046
Liberty Mutual$3,209
Nationwide$2,260
Progressive$2,376
State Farm$2,469
USAA$1,843

 

Tesla Model X

Like the Model S, the Tesla Model X has been a game-changer in the electric vehicle market. It also happens to be the most expensive vehicle featured on our list. Coming in at a starting cost of $81,000, it follows that it will be expensive to insure. On average, it is less expensive to insure the Model X, at a yearly average rate of $2,678. State Farm and Progressive are two of the cheapest options for Tesla Model X insurance.

 

ANNUAL INSURANCE RATES: TESLA MODEL X
CompanyPremium
Allstate$3,781
GEICO$2,970
Farmers$4,603
Liberty Mutual$3,316
Nationwide$2,069
Progressive$2,011
State Farm$1,798
USAA$2,131

 

Mitsubishi i MiEV

The Mitsubishi i MiEV is of the most affordable electric vehicles on the market, starting at $22,995. The Mitsubishi i MiEV is also one of the cheapest to insure, with an average yearly rate of $1,576. USAA and State Farm, on average, are often the cheapest companies. 

 

ANNUAL INSURANCE RATES: MITSUBISHI i MiEV
CompanyPremium
Allstate$3,781
GEICO$2,970
Farmers$4,603
Liberty Mutual$3,316
Nationwide$2,069
Progressive$2,011
State Farm$1,798
USAA$2,131

 

Nissan Leaf

The Nissan Leaf is one of the more affordable electric cars surveyed in terms of list price and average insurance premiums. On average, the Nissan Leaf costs $29,990 to buy and $1,553 a year to insure. USAA and Nationwide provide the cheapest insurance rates for the Nissan Leaf.

 

ANNUAL INSURANCE RATES: NISSAN LEAF
Company
Premium
Allstate$2,535
GEICO$1,477
Farmers$1,826
Liberty Mutual$1,721
Nationwide$1,338
Progressive$1,816
State Farm$1,493
USAA$1,209

 

Chevy Bolt

Like the Nissan Leaf, the Chevy Bolt is a moderately-affordable purely electric vehicle in regards to price and average premiums. On average, the Chevy Bolt costs $36,620 to buy and $1,811 per year to insure. USAA and Nationwide provide the cheapest insurance rates for the Nissan Leaf.

 

ANNUAL INSURANCE RATES: CHEVY BOLT
CompanyPremium
Allstate$2,672
GEICO$2,017
Farmers$1,830
Liberty Mutual$1,873
Nationwide$1,796
Progressive$2,044
State Farm$1,647
USAA$1,289

 

Hybrid car insurance

While enthusiasm for hybrids may have cooled somewhat in light of the expanding availability EV models, their impact on eco-friendly driving is hard to overstate. Hybrids still remain a moderately affordable option for eco-minded drivers. Also, they can be insured at a much lower cost on average. Below are some of the more popular hybrid models. 

Chevrolet Volt

Chevrolet Volt

Even at a starting price of $33,520, the Chevy Volt's insurance costs are relatively low for a hybrid, averaging just $1,536 per year. If you're looking for cheap car insurance for a Chevy Volt, begin your search with USAA and Nationwide, which offer lower-than-average annual insurance rates for the Chevy Volt.

 

ANNUAL INSURANCE RATES: CHEVROLET VOLT
CompanyPremium
Allstate$2,284
GEICO$1,559
Farmers$1,979
Liberty Mutual$1,781
Nationwide$1,399
Progressive$1,640
State Farm$1,434
USAA$1,234

Ford C-MAX

Ford C-Max

One of the cheaper green vehicles to insure, the Ford C-Max has an annual average insurance cost of $1,556. The C-Max carries one of the cheapest list prices among hybrid or electric cars, with a 2018 value of $24,120. For this vehicle, Farmers is the cheapest insurance company, with Nationwide a close second.

 

ANNUAL INSURANCE RATES: FORD C-MAX
Company
Premium
Allstate$1,686
GEICO$1,613
Farmers$1,485
Liberty Mutual$1,637
Nationwide$1,489
Progressive$1,650
State Farm$1,728
USAA$1,704

 

Toyota Prius-C

Toyota Prius

One of the more popular hybrid vehicles at the time of its introduction, the Toyota Prius continues to be a highly-valued eco-friendly vehicle. While there are many different models available, the base price for Prius starts at $24,200. Insurance rates average at about $1,570 annually. Consider USAA and Nationwide for your Prius car insurance.

 

ANNUAL TOYOTA PRIUS-C INSURANCE RATES
CompanyPremium
Allstate$2,200
GEICO$1,557
Farmers$1,772
Liberty Mutual$1,763
Nationwide$1,282
Progressive$1,741
State Farm$1,616
USAA$1,170

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Is car insurance different for hybrids and EVs vs. gas-powered vehicles?

In short, no. Car insurance is designed to be as broad as possible and to accommodate all forms of vehicles, including eco-friendly cars. The only truly unique aspect of hybrid or EV car insurance is the potential for an EV or hybrid auto insurance discount. While the name of the benefit may vary, it’s sometimes called a “green vehicle discount,” an "alternative fuel vehicle discount," or a “fuel-efficient discount.” The amount of the discount depends on the insurance company, but premium reductions enjoyed by hybrid owners often average 5% per six-month policy period.

 


 

How else can you save?

While the prices of EVs and hybrid vehicles have slowly crept downwards over the years, they still remain more expensive to buy and insure on average. As such, it makes sense to look for savings whenever possible. Let’s review some simple and easy steps that could save you money.

 

Be smart with your claims

Car insurance has an annoying habit of becoming more expensive the more you use it. Nearly every car insurance company will raise your rates quite significantly after filing a claim. Moreover, a claim continues to be a chargeable offense for three years. If you’ve damaged your vehicle and aren’t sure whether the value of the damage is worth filing a claim, use this step-by-step process to help.

  • Get an estimate for the repairs at a local repair shop
  • Use our State of Insurance analysis to see how much an at-fault accident would raise your rates in your state. Because car insurance is regulated at a state level, the rate increase will vary by state. Again, consider this value for a three-year period.
  • Compare the rate increase plus your deductible to the out of pocket value. Take whichever option is more affordable.

If you’ve damaged someone else’s vehicle, you have less flexibility in terms of whether or not to involve insurance companies. If the other driver does not want to be paid out of pocket for the damage, which is common, you don’t have a choice. Moreover, there is much less of a financial penalty for filing a comprehensive or uninsured motorist property damage deductible. These accidents are typically seen as outside of the control of the driver and thus aren’t rated the same.

 

Be aware of discounts

Although typical car insurance discounts are relatively small, they can add up to cut down on your insurance bill. When seeking savings, consider the following discounts:

  • Multi-policy discount
  • Good driver discount
  • Paperless discount
  • Payment by bank account
  • Paid in full discount (paying your premium in one payment)
  • Multi-vehicle discount
  • Telematics
  • Alternative fuel discount

 

Seek out tax credits

Electric vehicles may come with tax incentives at the state and federal level. Check the Energy Department’s website for more information and to see if your car is eligible.

 

Compare insurance rates

Even though it’s often more expensive to insure a hybrid or an EV than to cover a Honda Accord, you shouldn’t let that deter you from these vehicles. You can still find cheap car insurance for a green vehicle by shopping around to get insurance quotes from as many companies as possible. if you evaluate as many companies as possible. Shopping around is the only way to see if you could be getting a better rate elsewhere, or to confirm you’re already getting the cheapest insurance policy available.

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Additional information

Didn't get all your questions answered? See our additional articles here for more ways to save on car insurance.

 


 

Methodology

The auto insurance rates displayed in our articles are based on the 2019 results of The Zebra’s comprehensive car insurance pricing analysis. In our analysis of all US zip codes — including Washington D.C. — our user profile consisted of a 30-year-old single male driving a 2013 Honda Accord. To generate pricing specific to particular rating factors, we altered the driving profile based on the common pricing factors utilized by top car insurance companies. These factors include, but are not limited to, credit score, coverage level, and driving record.

For more information regarding our methodology, see our full State of Insurance.