Insurify on latest EV insurance market trends, Lemonade now offers autonomous car insurance in Indiana
According to a new report from Insurify, EVs are 42% more expensive to insure than gas-powered cars. However, they are more affordable to power, based on an analysis of its database of more than 235 million quotes.
Insurify notes that Cox Automotive found used EV sales rose 54% in March compared to February.
In 2026, EVs cost an average of $3,159 per year to insure with full coverage across all model years, according to Insurify data.
“Gas-powered cars cost $2,218 per year on average to insure,” the report states. “Tesla maintains the single largest share of EV sales nationwide, but its models also rank among the most expensive to insure.
“EVs often cost more to insure because they cost more to repair. Many older gas-powered cars with less technology are still on the road, contributing to that cost gap. The median vehicle age in Insurify’s database is 11.5 years. But the EV cost gap shrinks to 18% when comparing newer models (model year 2024 or newer). Broad industry adoption of assistive technology across newer vehicles is narrowing the insurance cost gap.”
The report also notes that EV insurance costs for newer models increased 37.6% this year compared to 2023, 24% faster than gas-powered vehicles.
“But now EV insurance costs are going down faster than costs for newer gas-powered cars,” the report states. “Over the last year, average insurance rates for newer EVs dropped by 11.1%, compared with 7.7% for newer gas-powered cars. Overall, average auto insurance rates went down about 6% in 2025, according to Insurify’s auto report.”
“Adoption is still a moving target, however,” the report states. “EV sales spiked in late summer of 2025 before the federal tax credit for EV purchases ended on Sept. 30, but year-over-year sales dropped significantly following its expiration.”
J.D. Power also recently reported that consumers are collecting a historic number of quotes when shopping for auto insurance in its newest U.S. Insurance Shopping Study.
“Many customers are downloading apps from competing carriers just to shop rates, and nearly half (48%) of new auto policies are now purchased digitally (up from 36% just five years ago), making digital channels the new front door for insurers to bring new customers into the fold,” a press release on the study says.
As auto insurance increases are cooling, customers are no longer panicking, with the share of customers shopping for auto insurance declining from 57% to 53% year over year. Despite that, J.D. Power says shopping remains at historic levels.
Insurance company Lemonade has announced that its autonomous car insurance is now available to Tesla drivers in Indiana.
A company press release states that Lemonade Autonomous Car provides Tesla owners 50% off every mile driven using the automaker’s Full Self-Driving (Supervised) technology.
“This first-of-its-kind insurance product cuts Tesla’s cost of ownership by slashing insurance prices in half for miles driven with FSD (Supervised),” said Shai Wininger, Lemonade’s president and co-founder, in the release. ”
Interested consumers can get quotes in the Lemonade app or at tesla.lemonade.com/fsd and receive additional savings when bundled with Lemonade Renters, Pet, or Home insurance.
Lemonade continues to offer its existing car insurance, which supports most popular cars as well as Teslas, in Arizona, California, Colorado, Illinois, Indiana, Ohio, Oregon, Tennessee, Texas, and Washington.
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Featured image credit: SeizaVisuals/iStock
Graphs from Insurify’s “The EV Premium Penalty: Insuring an EV Is 42% More Expensive Than a Gas Car, but Newer Models Are Closing the Cost Gap” report