I get asked this often: “Is it true that electric vehicles cost more to insure?”

There is a misconception that just because a car is electric, the premiums skyrocket. My experience is different. Insurance companies generally look at the value of the vehicle rather than just the engine type .

For example, if you look at a Tesla Model 3 compared to a similar range Honda or Toyota, you might find that the Tesla is competitively priced or even slightly cheaper to insure depending on the market value. The insurance company is assessing the risk of the asset.

They don’t penalize you specifically for driving electric; they care about what it costs to replace that asset and your driving history .

It is important to note that insurers in Florida generally don’t offer specific “green incentives” or discounts just for driving an EV. They are looking at the math: your claims history, your insurance score, and the vehicle’s value. So, if you are looking at an EV, don’t assume the insurance will be a dealbreaker—check the rates based on the VIN first.