Are Electric Vehicles More Expensive to Insure?

Jan 2, 2024 2 min read

If you’re in the market for a new car and are considering an electric or hybrid vehicle, you’ll want to consider how your insurance premium may be impacted. While each make and model will be factored into your electric vehicle insurance cost, in general, your insurance cost may be more than a gas-powered vehicle. We’ll explain why and how you can lower your insurance costs below. 

Why Is Insurance for Electric Vehicles More Expensive?

Once you’ve narrowed down which type of electric vehicle (EV) you would like to purchase, your local Farm Bureau agent can provide you with estimated car insurance rates for that specific vehicle. 

There are a few factors that may cause your insurance to be more expensive than gas-powered vehicles, but it mostly comes down to the fact that electric cars cost more to repair. Their parts are not as readily available as most cars on the market and the parts cost more to make. There are not as many qualified auto shops that work on EVs, making that repair challenge even more difficult.

Additionally, a heavier battery resulting in higher vehicle weight can increase damage to other vehicles. 

Can I Lower the Cost of Electric Vehicle Insurance?

While insurance for your electric vehicle may initially be higher, there are still ways you can save money. Not only will you be able to save money on fuel costs, but you may be able to qualify for tax credits. Under the Internal Revenue Code Section 30D, if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV), you may qualify for a credit up to $7,500. Plus, Farm Bureau offers many insurance discounts to lower your premium. 

Take Advantage of Insurance Discounts

We know that many these days are looking at how to lower the cost of auto insurance. Drivers of all ages in your home may be able to earn good driver discounts. With Driveology®, the safer you drive, the more you save. Immediately upon enrolling, you will earn a 10 percent discount and can earn as much as 50 percent for your safe driving.1 

Our Young Driver Safety Program gives your young driver the chance to build skill and confidence behind the wheel and the potential to lower your car insurance payment. Those who complete our Young Driver Safety program and are under the age of 25 are eligible to earn our Safe Young Driver discount as well.

Additionally, your smart student can help you save. For your full-time students who maintain a good grade point average, we have a discount for that. Our Good Student Discount rewards your child for prioritizing school. For safe drivers who also do well in school, the savings can add up.  

Whether you’re buying a new vehicle, adding a new driver to your policy or simply wondering how to get discounts on car insurance, your local Farm Bureau agent can provide you with a quote.

Looking for More Ways to Save? 

There may be additional discounts available to you. There’s no better time than now to set up a SuperCheck® with your local Farm Bureau agent to evaluate your current coverage and ask about options such as our Paid in Full discount and how bundling your home and auto insurance into one policy with Farm Bureau’s Member’s Choice can save you.

110% savings applied per vehicle at enrollment for select coverages. Future savings based on individual driving behaviors and varies by coverages selected. Discounts apply to the major coverages for your eligible and enrolled vehicles. Cannot be combined with the Low Mileage Discount.

2Safe Young Driver discount eligibility is subject to all eligibility requirements being met.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.