Are Hybrid Vehicles or Electric Vehicles Cheaper to Insure?

Last Updated on December 17, 2025

Hybrid and electric vehicles can save you money on fuel and maintenance—but insurance isn’t always one of the perks. Depending on the model and insurer, you might pay less, about the same, or more to insure a hybrid or EV compared to a similar gas-powered car.

Below, we’ll break down what usually happens with hybrid vs. electric car insurance rates, why premiums can be higher, and the best ways to keep costs down.

Key Takeaways

• Hybrids and EVs are often more expensive to insure than comparable gas cars, mainly due to higher repair and replacement costs.
• Insurance pricing varies widely by model and insurer, so it’s important to compare quotes using the exact trim or VIN.
• Batteries, advanced electronics, and limited repair networks can increase claim severity and push premiums higher.
• Discounts (bundling, telematics, low-mileage, and sometimes “green” discounts) can help offset higher premiums.

Quick Answer: Are Hybrids or EVs Cheaper to Insure?

Often, hybrids and EVs cost more to insure than comparable gas vehicles—but it varies a lot by model, trim, and insurance company. Some EVs and hybrids price surprisingly close to gas cars, while others come with a noticeable premium.

The biggest takeaway is this: don’t assume. Always compare quotes using the exact year/make/model/trim (or VIN, if you have it), because insurer pricing can differ dramatically between two vehicles that seem similar.

Why Hybrid and Electric Cars Can Cost More to Insure

Insurance companies look at many factors to set your rate, including your driving history, your annual mileage, and your vehicle’s repair and replacement costs.

Hybrids and EVs don’t automatically make you a riskier driver. The difference is that many hybrids and EVs are more expensive to repair and replace, which increases claim costs—and that can push premiums up.

1. Higher vehicle value (higher payouts)

If a vehicle costs more to replace, insurers take on more financial risk in a total loss. Even if you’re a safe driver, a higher replacement cost can mean a higher premium.

2. Battery and high-voltage components

Batteries are one of the most expensive parts of an EV—and high-voltage components require specialized handling. In some crashes, battery damage can turn a “repairable” accident into a total loss decision.

3. More advanced tech to repair and recalibrate

Many hybrids and EVs come packed with sensors, cameras, driver-assistance features, and specialized electronics. These systems can increase the cost of repairs, and some repairs require calibration after parts are replaced.

4. Fewer qualified repair shops

Not every body shop is equipped or certified to repair certain EVs and hybrids—especially when high-voltage systems are involved. Specialized labor and longer repair times can raise claim costs.

5. Higher claim severity (even if crashes aren’t more common)

Even if accident frequency is similar, repair bills can be higher. And when payouts go up, premiums tend to follow.

Are Hybrids Cheaper to Insure Than Fully Electric Cars?

Often, hybrids land in the middle: they can cost more to insure than a comparable gas vehicle but sometimes less than a fully electric version. That’s not a hard rule, though—some hybrids are very affordable to insure, and some EVs price competitively depending on the model and the insurer’s claims experience.

Do Insurers Offer Discounts for Hybrids and EVs?

Sometimes. Some companies offer “green” or alternative-fuel discounts, and many hybrid/EV owners also qualify for discounts that have nothing to do with the powertrain (safe driver, low mileage, bundling, telematics, good student, and more).

It’s also common for EV and hybrid owners to have characteristics that insurers often price favorably—like lower annual mileage and more stable driving/ownership patterns. That can help narrow the gap between hybrid/EV premiums and gas-car premiums.

For example, hybrid and EV drivers often:

• Drive fewer miles
• Have fewer claims over time (varies by driver and location)
• Have steady insurance histories
• Are more likely to be in their 40s and 50s

How to Lower Hybrid or EV Insurance Costs

If you’re trying to keep insurance affordable, these strategies usually help more than focusing on “hybrid vs. EV” in the abstract:

• Shop multiple quotes (and quote the exact trim or VIN). One insurer might price your EV very competitively while another charges far more.
• Consider deductibles carefully. A higher deductible can reduce premiums—just make sure you can afford it after an accident.
• Ask about EV/hybrid discounts and telematics programs. Some insurers offer usage-based programs that can cut costs for safe drivers.
• Review coverage needs. Newer, higher-value vehicles often need comprehensive and collision; older vehicles sometimes don’t (depending on your situation).
• Bundle policies. Home/renters + auto bundling discounts are often meaningful.
• Keep your mileage accurate. If you drive less than average, make sure your insurer knows—see how low-mileage discounts can save you money.

FAQs on Hybrid and Electric Vehicle Insurance

Final Word: Are Hybrids or Electric Vehicles Cheaper to Insure?

In many cases, hybrids and EVs are a bit more expensive to insure than comparable gas cars because the vehicles can cost more to repair and replace. But the gap varies widely by model, insurer, and driver profile—and some hybrids/EVs can be priced very competitively.

Your best move is to compare multiple quotes for the exact vehicle you’re considering, ask about discounts, and choose coverages and deductibles that fit your budget.