What are the real stats on insurance for ICE vs. EVs? What about the property insurance costs for properties with chargers?

The claim that EV insurance is a staggering 49% more expensive than gas car insurance has become a powerful narrative, often used to undermine the financial case for electric vehicles. This statistic, popularized by some outlets citing reports from insurance data platforms like Insurify, paints a bleak picture for potential EV buyers. However, a closer look at the data reveals that this number is highly misleading and fails to account for a critical factor: the sticker price of the vehicle itself. The narrative that EVs are inherently more expensive to insure simply because of their powertrain misses the nuances of a rapidly evolving market and the real stats behind these costs.

The Real Difference in Cost

The core of the issue, as many in the industry are quick to point out, lies in the apples-to-oranges comparisons often used in these headline-grabbing analyses. Data from Insurify itself, and similar reports from sources like ValuePenguin, show that the average MSRP for the EVs in their sample is significantly higher than that of the gas-powered vehicles. As of late 2024, the average price of an EV was around $55,000, while the average for a gas car was closer to $49,000. It is a fundamental principle of insurance that a more expensive vehicle costs more to repair or replace, and thus costs more to insure.

The 49% figure, while it may exist in some datasets, is a function of comparing premium-priced EVs to the average gas-powered car, including countless affordable models. A more accurate analysis from a recent Insurify report found the average difference in full-coverage premiums was closer to 23%, a substantial figure but far from the inflated numbers often quoted.

More To the Story

The real story emerges when you compare vehicles in the same price class. The user's example of the Ford F-150 is a perfect case study. According to data from ValuePenguin, the average insurance rate for a Ford F-150 Lightning is either comparable to or slightly lower than that of its gasoline-powered counterpart. This is a direct result of a deliberate engineering decision by Ford to build the Lightning on a similar platform to the gas version, making it easier and cheaper to repair. The difference in premiums, therefore, has less to do with the powertrain and more to do with the specific vehicle’s repairability, access to parts, and the cost of the technology it contains. As more legacy automakers release EVs on shared platforms, the price gap is expected to narrow.

The Repair Cost Differential

Beyond the initial purchase price, several other factors contribute to the higher cost of insuring an EV. The most significant is the cost of repairs. The U.S. Energy Information Administration (EIA) reports that EVs are more expensive to repair due to specialized parts, particularly the battery, which can cost tens of thousands of dollars to replace.

Furthermore, there is a shortage of skilled mechanics and body shops with the training and equipment to handle EVs. This combination of expensive parts and specialized labor can drive up claims costs for insurers. In some cases, a minor collision that would be a simple fix for a gas car could lead an insurance company to "total" an EV because the cost to repair the battery or integrated components outweighs the vehicle's value. However, as the market matures, the repair ecosystem is expected to catch up, bringing costs down over time.

Property Insurance: The New Frontier of Risk

The conversation about EV insurance extends far beyond the vehicle itself to the properties that host charging infrastructure. For commercial property owners, fleet managers, and multi-unit dwelling operators, the decision to install chargers introduces new risks that are being carefully evaluated by the insurance industry. The primary concerns center on fire risk, public liability, and the value of the charging equipment itself.

While electric vehicles are less likely to catch fire than gasoline cars on a per-vehicle basis, when a fire does occur involving a lithium-ion battery, it can be more intense and harder to extinguish due to a process called thermal runaway. As noted in risk assessments from industry leaders like Allianz, the concentration of EVs in a commercial fleet depot or a parking garage with multiple chargers creates a potential for fire spread. As a result, insurance carriers may view properties with charging infrastructure as having a heightened risk profile. This can lead to higher premiums, or in some cases, a requirement for additional safety measures such as enhanced fire suppression systems, thermal monitoring, and proper ventilation.

Beyond fire, the presence of chargers introduces public liability risks. As detailed in a report from InterWest Insurance Services, property owners must consider the potential for trip-and-fall incidents from charging cables, accidental electrocution, and even vandalism. These are liabilities that must be factored into commercial general liability policies. The equipment itself—the chargers, cables, and power management systems—is a valuable asset that is also at risk of damage from vehicle collisions, weather, and tampering. Property owners must ensure their insurance policy provides adequate coverage for this new and specialized equipment.

Risk Management is the KEY

The key to mitigating these costs and risks is proactive risk management. Proper planning, professional installation, and ongoing maintenance of charging infrastructure are non-negotiable. By implementing proper safety protocols, strategically placing chargers to minimize risk, and working with insurers to demonstrate a commitment to safety, businesses can address these concerns head-on.

As the market for EV charging infrastructure matures, insurance carriers are developing more tailored policies that better reflect the actual risks, allowing for a more nuanced and accurate assessment of premiums. The ultimate success of EV adoption will depend not only on the vehicles but on the responsible and safe deployment of the ecosystem that powers them.

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