SAN DIEGO (KGTV) — Electric vehicle drivers are paying 49% more for car insurance compared to drivers of gas-powered vehicles, according to recent data from Insurify, an AI-powered online insurance comparison platform.
EV drivers face an average insurance cost of $4,058 a year, compared to the average cost to insure a gas-powered car, which is about $2,732. This is due to higher repair costs and expensive parts such as battery packs and high-tech hardware.
James Olaleye drives back and forth from San Diego to Los Angeles every week for his business, logging about 120 miles each way. He switched to an electric vehicle to save money at the gas station.
"I do use the truck a lot for work. I pick up vacuum-sealed bags, deliver sometimes to small businesses," Olaleye said.
"I just go with the cyber truck because you know it's save me money over time," Olaleye said.
That was until he got his insurance premium. Olaleye said his insurance jumped to $600 a month.
"Most people they buy electric car. They don't even know about the insurance. I didn't know about it you know I thought it was going to be the same," Olaleye said.
Experts say there are ways to save if you have an EV. Drivers can ask their insurance provider to bundle discounts, as many places will offer a discount for bundling auto insurance with home or renters insurance. Another option is to increase your deductible, which lowers the premium, and to shop around.
Patty Villegas said she found an insurance carrier that increased her policy by just $35 a month. She suggests doing research and crunching the numbers to see if buying an EV is worth it when factoring in charging costs and gas.
"I drive a lot. I'm a real estate appraiser so I'm always on the road. So I was spending between $200 to $33 per week in gas," Villegas said.
"If I charge here it's free and then at home my bill ends up only $20 per month," Villegas said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
