2025 EV Insurance Hacks: How To Save $900 a Year Without Switching Cars

The EV–ICE gap in real dollars

EV insurance 2025 still runs higher than gas, and the gap widened substantially this year. National numbers shows EV drivers paying about $4,058 on average versus $2,732 for ICE—roughly a 49% difference, according to Insurify’s 2025 report. Despite what looks like a big dipper, that’s not a price crash story; overall insurance inflation cooled from 2023’s spike, but prices remain high. The BLS CPI release still shows motor-vehicle insurance rising year over year, just at a slower pace.

Figure 1 — Average Annual Premiums ICE v EV (2020–2025) (USD): Source: Insurify.

The Gap, At A Glance

The EV–ICE premium gap narrowed from the mid-40s in 2021 to ~23% in 2024, then jumped to ~49% in 2025. That is EV averages rising about $628 while ICE slipped ~$46, so the spread widened. Treat the shape as directional: Insurify’s 2021–23 points use monthly quote medians (annualized); 2024–25 use annual averages.

Figure 2 – After tightening through 2024, the EV–ICE gap widens to ~49% in 2025 as EV averages rise and ICE holds flat. Source: Insurify.

Why The Gap Widened

Two levers matter: repair severity and shop readiness. Fresh claims data pegs repairable collision severity around $5,903 for BEVs vs. $4,938 for ICE in Q2 2025—higher parts costs and longer calibration time keep EVs much more expensive to insure. Mitchell’s Plugged-In Q2 2025 lays it out: sensor-dense front and rear modules, aluminum closures, specialty glass, and ADAS calibration add real dollars.

Winners & Strugglers

When there are dips and spikes in averages, someone is winning and someone losing. Mass-market EV crossovers with mature parts pipelines and clear repair guides show easing. Think Model Y, Model 3 (Highland), VW ID.4, Ioniq 5, and EV6.

Luxury and low-volume rigs still have premiums that really sting: Rivian R1T/R1S, Cybertruck, Lucid Air, Mercedes-Benz EQE. Gas rivals like RAV4 and CR-V still insure cheaper in most ZIPs, even as fueling math favors many EVs.

Figure 3 — Shopper’s Table (direction & why). Source: Aggregate of Insurify national EV vs. ICE averages (2024–2025), Mitchell Plugged-In Q2 2025 BEV vs. ICE repair severity trends, and IIHS front crash-prevention findings.

Buyer Playbook

Want lower EV premiums? Shop like this:

• Pick mature, high-volume models: Model Y/3, ID.4, Ioniq 5, EV6. Big fleets mean faster parts and shorter repair times.
• Choose safety-heavy trims: AEB, rear auto-braking, blind-spot, cross-traffic. Prevention beats repair.
• Keep fascias and glass simple: Skip pixel headlights, full-width light bars, and pano roofs.
• Run 18–19-inch wheels: Common tire sizes replace cheaper than 20–22s.
• Buy into a strong repair network: Confirm nearby certified shops can calibrate your cameras/radar.
• Stick with mainstream options: Standard paint and shared panels beat boutique bits. Avoid matte paintjobs.

Use the market to your advantage:

• Quote the exact VIN with 5–6 carriers; then re-quote after you pick wheels and packages.
• Run telematics for 60–90 days if you drive clean.
• Bundle your home and auto with one insurer, then re-quote 30–45 days before each renewal—state-filed rates change, and fresh quotes may price your VIN lower
• Verify your policy lists AEB, rear auto-braking, and anti-theft correctly.

What you can save

Spec it smart and keep about $900 a year on EV insurance—same car, smaller bill. That’s a realistic ~20–23% from bundling and telematics on the average EV premium.

My Verdict

EV insurance 2025 is a spec sheet test. Choose the sane wheels, the proven safety kit, and the car that local shops can fix fast. Your quote—and your stress—drop.