Car Insurance for Electric Cars

We reward drivers for the environment-friendly driving choices they’re already making. Here are some of the perks.

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Buying an electric car is great for the environment, and they can soften the blow to your wallet over time. 

Electric cars save you money on gas, obviously, which reduces carbon emissions. Because they have fewer moving parts, maintenance costs are half of what they are for conventional cars. (Here’s a whole lot more on how electric cars actually work.)

But if you previously owned a conventional car, the first time you get an auto insurance quote for your Tesla Model X or Nissan Leaf… you could be in for a shock. Car insurance simply costs more for an electric vehicle.

Here’s why, as well as some tips on how to save some money on your auto insurance rates. 

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The best auto insurance for electric vehicle owners

Electric car insurance

When you drive an EV, you’re already doing your part for the environment. (Way to go!). At Lemonade Car, we’re fueled by our love for the planet, and we go the extra mile for eco-conscious drivers. Here’s how: 

  • We reward low-mileage drivers with savings
    • Check out how our plug-in device lets us track your mileage—and price your policy—with precision here.
  • We’re the first US insurance company to publicly forswear investment in fossil fuels.
  • The Lemonade Giveback helps transform car insurance into a social (and environmental) good. When you buy a Lemonade Car policy, you’ll be eligible to select a cause you care about—including non-profits helping the environment.

Curious about what else sets Lemonade Car apart? Well, for starters:

  • We measure good driving habits—like opting for well-maintained roads, and driving during daylight hours or avoiding heavy traffic—which could potentially lead to lower insurance rates at renewals for safe drivers.
  • We offer discounts for bundling with another Lemonade product—like Homeowners, Renters, Pet, and Life Insurance.

In addition, a Lemonade Car policy is super customizable. Here’s a TL;DR of what we can help with if you purchase the relevant coverages.

Still have coverage questions? We go into a lot more detail here.

Car insurance rates for electric vehicles

What do insurers look at when preparing a car insurance quote? 

All of these factors influence how much your car insurance costs.

But, for electric car owners, if nothing has changed in your driving history just switching to an electric car could send your rates higher. The insurance costs for a hybrid or electric vehicle can be 7% to 11% higher than standard car insurance. 

Why does insurance for electric cars cost more?

Electric cars and electric versions of conventional cars cost more than conventional cars. If you were in an accident, your insurer would have to pay out more if an adjuster declared the EV totaled.  

Repairs on EVs might cost less due to fewer moving parts, and you save on electric car maintenance since there’s no need for things like oil changes. But if the battery pack needs replacing, the average cost is $5,500. Labor costs for electric vehicle repairs also can be higher than with a conventional car. 

Why does insurance for electric cars cost more?

Higher replacement costs and potentially higher repair costs lead to more expensive car insurance policies. Since an insurer would have to pay out more if you filed a claim, they’ll offset this risk by charging higher insurance premiums.

Learn more about some ways to lower the cost of car insurance here

Getting your electric car insurance quote

You can apply online and get a car insurance quote within minutes. But when you’re entering information, don’t just look for the cheapest insurance premiums.  You want the right combination of coverage, deductibles, and limits to protect your new car as much as you want to protect the environment. Shop around, and take the time to compare auto insurance quotes and what insurance providers have to offer.

At Lemonade, insuring electric and hybrid vehicles is more than good business—it aligns with our values. 

We reward drivers for the environment-friendly driving choices they’re already making. If you just bought a new car, or it’s time to switch insurance companies, click the button below to get rolling.

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A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states.


Please note: Lemonade articles and other editorial content are meant for educational purposes only, and should not be relied upon instead of professional legal, insurance or financial advice. The content of these educational articles does not alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. While we regularly review previously published content to ensure it is accurate and up-to-date, there may be instances in which legal conditions or policy details have changed since publication. Any hypothetical examples used in Lemonade editorial content are purely expositional. Hypothetical examples do not alter or bind Lemonade to any application of your insurance policy to the particular facts and circumstances of any actual claim.