Electric Vehicle Insurance Often More Expensive Than Internal Combustion Alternatives

Under identical conditions, insurance costs for electric cars can be up to 44 percent higher.

For an electric BMW X3, comprehensive insurance (Vollkasko) rates are nearly 50 percent higher than for the gasoline version—despite both models belonging to the same type classes. Of all available insurance quotes, approximately 49 percent were more expensive for the electric modification. Only in 32 percent of cases was EV insurance cheaper, while 19 percent of quotes offered identical pricing.

The study also showed that the electric Skoda Enyaq is sometimes 18 percent more expensive to insure than the gasoline-powered Kodiaq, even though they share the same type class. In this case, 40 percent of the quotes were more expensive for the EV, 35 percent were cheaper, and 26 percent were the same.

The End of the “EV Discount”

“For a long time, insurers default-priced electric vehicles lower than their gasoline counterparts,” explained Alyosha Ziller, Managing Director of Verivox Versicherungsvergleich GmbH. He added: “On one hand, there was a lack of damage data; on the other, companies wanted to secure a position in a young, growing market. However, the time of unconditional discounts for electric cars has ended.”

Data accumulated by Verivox suggests that while electric vehicles are involved in accidents less frequently, their repairs are often significantly more costly. This is particularly evident in the comprehensive insurance segment. Nevertheless, competitive rates for EVs still exist, as some insurers continue to use low premiums to attract new customers in this segment. Depending on the model and chosen plan, savings of up to 23 percent are still possible.

Advice for Owners: Look Beyond the Price

“Electric vehicle owners should carefully compare offers before signing a contract,” emphasized Ziller. He noted that in addition to the price, it is crucial to check for specific services—particularly protection for the expensive battery. Policy conditions in this area still vary widely among providers.

To conduct this analysis, Verivox used a standardized profile: a 45-year-old Berlin resident with an annual mileage of 12,000 kilometers and a “no-claims” class (SF-Klasse) of 15. The study covered more than 400 tariffs from approximately 60 insurance companies.

Source: Verivox