A famous frog once sang, “It’s not easy being green.”
And while green cars are becoming more mainstream, making the switch from a gas-guzzler won’t be without its challenges for some of us. For example, the average overall cost of repair for an electric vehicle (EV) is nearly 3% higher than a small car internal combustion engine (ICE), according to a new report from CCC Information Services, a provider of data and technologies to the automotive, collision repair and insurance industries.
Replacement parts for an EV are 2.7% more expensive than replacement parts for a small car ICE, partially due to more complex electrical systems. Meanwhile, many collision repair facilities may have to play catch-up in terms of staff training, upgraded network requirements for connected EVs, and new equipment for scans and calibrations.
But here’s some good news: EV owners were 3% more satisfied with repairs than small car ICE owners, according to the CCC report. And even with slightly higher repair costs, plenty of drivers have adopted green cars as a way of lowering fuel costs, and emissions and getting a federal tax credit.
So if you’re in the market for an EV, hybrid or a plug-in, here’s a look at average insurance costs for top-selling green vehicles.
The Least Expensive Green Cars to Insure
The Toyota RAV4 Hybrid, Kia Niro Hybrid and Honda CR-V FHEV are the least expensive green cars to insure among popular 2021 models.
Middle of the Pack: Medium-Expensive Green Cars to Insure
The Most Expensive Green Cars to Insure
The Porsche Taycan is the most expensive green car to insure among the top-selling 2021 hybrid and electric vehicle models.
Related: Most And Least Expensive Vehicles To Insure
Car Insurance Rates for Green vs. Gas Vehicles
When it comes to car insurance rates, how do green vehicles stack up against their gas-powered counterparts? We looked at several of the least expensive green vehicles to insure compared to similar gas-powered models.
For the most part, gas-powered models are less expensive to insure than their hybrid counterparts.
Car Insurance Rates: Green vs. Gas Vehicles
What Is a Green Vehicle?
A green car operates using alternative fuels like electricity, hydrogen, compressed natural gas, ethanol or biodiesel. The most common green vehicles tend to be one of the following:
- Hybrid electric vehicles. These cars combine an electric motor with a gasoline engine. Examples of models of hybrid vehicles include the Ford Fusion, Honda Accord, Kia Niro and Toyota Prius.
- Plug-in hybrid electric vehicles (PHEVs). While these cars use both gasoline and electricity to power them, a PHEV can be charged from a wall outlet. PHEVs typically use electric-only first (ranges often vary between 10 to 50 miles), then switch to standard hybrid functionality. Examples of models of PHEVs include the Honda Clarity PHEV, Lincoln Aviator PHEV and Mitsubishi Outlander PHEV.
- All-electric vehicles. These green cars rely solely on electricity to power your car. All-electric vehicles need to be charged and have a limited range before needing a recharge. Examples of all-electric vehicles include the Chevy Bolt, Nissan Leaf and Tesla Model 3.
The upside of green cars is generally better fuel economy and lower emissions. You might also qualify for a federal tax credit up to $7,500 for buying an all-electric or plug-in hybrid car purchased new in or after 2010.
Why Are Green Vehicles More Expensive to Insure?
Auto insurance companies look at claims that have been paid for similar vehicles when they set their prices. For example, if your specific model has a history of frequent and/or expensive claims, insurance rates for all owners of the model will generally be higher.
Repair and replacement costs play a significant role in the cost of claims. Electric and hybrid cars can cost more to repair or replace due to complex equipment and parts. For example, electric and hybrid cars typically have higher battery replacement costs compared to an internal combustion engine.
More expensive parts and costly claims when cars are totaled usually result in higher car insurance rates when you buy insurance for a green vehicle.
Related: Best car insurance companies
What Affects Car Insurance Cost?
Your green vehicle isn’t the only factor when it comes to determining your car insurance cost. Other common factors include:
- Your driving record. Drivers who avoid at-fault accidents and traffic violations enjoy the best rates.
- Driving experience. Young and inexperienced drivers pay higher rates.
- Claims history. Drivers with a history of claims usually pay more for car insurance.
- The type of coverage you choose. The types of car insurance you choose and your policy limits will affect your rates.
- Where you live. Areas with higher rates of car accidents and vehicle theft can be more costly.
- Your insurance history. If you have a lapse in your car insurance history, you’ll typically pay more.
- Your credit. In some states, drivers with poor credit-based insurance score will pay more. The use of credit to set insurance rates is banned in California, Hawaii, Massachusetts and Michigan.
How Can I Save on My Car Insurance Rates?
If you are buying insurance for a green vehicle, here are a few ways you can save on your car insurance:
- Shop around. Not every insurer sets rates the same for green vehicles. That’s why it’s a good idea to compare car insurance quotes from several different companies.
- Ask for discounts. Insurance companies offer various types of car insurance discounts, such as price breaks for safe drivers, good students, vehicle safety and anti-theft devices, and discounts for going paperless.
- Take advantage of telematics. Some car insurance companies offer discounts for drivers who participate in usage-based insurance programs, which track safe driving behaviors like speed, harsh braking, cornering and phone use.
- Try a pay-per-mile plan. If you are a low-mileage driver, such as someone who works from home, pay-per-mile auto insurance might be a good fit for you.
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Methodology
To find the cheapest vehicles to insure, we used rates from Quadrant Information Services, a provider of insurance data and analytics, and the top-selling 2021 vehicle models. Rates are based on a female driver with a clean record with $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, uninsured motorist coverage and any other coverage required in the state. The rate also includes collision and comprehensive with a $500 deductible.
