EVs Expensive to Insure
Study finds that the cost far exceeds ICE insurance.
Higher EV prices and repair costs contribute to elevated insurance premiums, the study found.
Pexels/Kindel Media
Electric vehicles cost nearly a quarter more than gas-powered models to insure, according to a new report.
Insurance comparison shopping website Insurify found that annual full-coverage policies for EVs average $3,430 versus $2,778 to insure vehicles with internal combustion engines, a 23% premium.
The Massachusetts-based company pointed to higher EV prices and repair costs as reasons for the disparity.
It said the average manufacturer suggested retail price for an EV is a little over $55,000, 13% above the average ICE price of $48,724, according to Kelley Blue Book data.
The average EV repair cost is $6,066, 29% higher than for ICE vehicles, again according to a KBB statistic.
Lower fueling costs for EVs help make up for the higher costs to insure them, Insurify pointed out. Those who charge theirs only at home spend as little as $812 a year on the electricity, it said, citing KBB numbers, while the average annual cost to fuel ICE vehicles is $2,449, Insurify said, quoting a J.D. Power report based on Bureau of Labor Statistics data.
LEARN MORE: Auto Insurance Costs Trended Down as Year Closed
Originally posted on Auto Dealer Today
More Industry
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →