Wider availability of electric cars from more automakers means prices have started to ratchet downward, but that doesn’t mean EVs are cheap to insure.
MoneyGeek.com compared several electric cars against their similarly sized, gas-fueled counterparts from the same automakers and discovered all were at least a little more expensive to insure.
On average, the site found that EVs run about 15% more to insure, though the differences varied dramatically by model. Here’s a look at some findings:
- A Volvo XC40 Recharge was 40.82% more to insure than a Volvo XC40
- An Audi e-Tron was 17.11% more to insure than an Audi Q5
Soul EV was 16.26% more to insure than a Kia Soul
Kona Electric was 10.18% more to insure than a Hyundai Kona
- A Mini Cooper SE was 6.5% more to insure than a Mini Cooper
The study even found that a Ford
Mustang Mach-E was 8.87% more to insure than a regular Mustang coupe, which is traditionally a costly vehicle when it comes to insurance.
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Why are EVs so much more to insure? Much of it comes down to their initial purchase prices. Before federal and local incentives, EVs have higher price tags than their gas-fueled counterparts. Cox Automotive reported in July that the average transaction price of a new electric car — the negotiated price before any incentives and not including taxes or registration fees — was $49,766 in June 2021. That’s about $7,000 higher than the industry average.
For instance, a Volvo
XC40 Recharge is priced at $55,085, while the automaker asks $34,795 for a base XC40 with gas power.
True, an XC40 Recharge is equipped more like the higher-end XC40 R-Design trim level, and it comes standard with all-wheel drive. Factoring in those features, a roughly equivalent XC40 with gas power costs $42,045.
There is some hope, though. Electric cars are getting cheaper, which may push insurance costs down over the next few years as automakers work toward far more electrified lineups.
This story originally ran on Autotrader.com.