Switching to an electric vehicle can reshape more than a household's fuel budget. For some drivers, it may also be changing insurance costs, even when the new car is newer and pricier.
Here's what to know
In a thread posted to Reddit's r/ElectricVehicles forum, one Ioniq 5 owner said replacing a nine-year-old gas-powered vehicle was followed by two separate reductions in their auto insurance premium.
This original poster said the cuts were small, but still notable because the EV cost more than the older internal combustion engine car it replaced.
Other commenters who own EVs said their premiums had either stayed flat or fallen as well.
One wrote, "Both mine are cheaper. Non Tesla." Another added, "My car insurance went down 30% this year. Don't know why but I'm not calling to ask either."
A third user wrote, "Yep, it seems like EVs from the legacy makers have a better parts supply line / costs compared to Tesla, which seem to be higher insurance cost in general for some reason despite plenty being sold and parts available."
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One commenter offered a more detailed comparison, saying, "Have a '24 Kia EV6 and a '23 Audi Q4. Combined they cost $1200 a year for full coverage insurance. Had a '21 ram 1500 previously and it cost $1,440 a year alone to insure." The same commenter added, "So [I'm] not only not paying for gas, but the insurance bill is considerably cheaper. Offsets the $150 yearly EV tax we have in Kentucky easily."
More background
Some people in the discussion suggested newer safety and driver-assistance features could be helping keep costs in check, especially compared with older vehicles.
Not every EV owner is seeing the same savings. Some commenters said electric trucks can still be more expensive to insure, and several pointed to higher registration fees in their states as a tradeoff for no longer paying gas taxes at the pump.
Where can I learn more?
For commenters, insurance was just one piece of the equation after moving from gas cars to EVs. The articles below offer more on the Hyundai Ioniq 5, unusual EV pricing dynamics, and a few ownership perks that go beyond the monthly premium.
• Hyundai's best family cars list entry now starts at $35,000 for buyers.
• In Denver, Ioniq 5 rentals are cheaper than economy cars, underscoring EV pricing quirks.
• Hyundai's family EV buyers have another three-row option in the Ioniq 9.
The broader takeaway is that the math on EV ownership goes well beyond fuel savings.
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