The best car insurance for electric and hybrid vehicles of 2026

Rising oil prices driven by the war with Iran have spurred renewed interest in non-combustion engine vehicles. After a steep drop following the end of the $7,500 EV tax credit in 2025, electric vehicle sales are stabilizing in the U.S., while hybrid sales soared nearly 20% in the first half of 2026.

Alternative-fuel vehicles can save you money at the pump, but their higher sticker price and expensive parts can make them costlier to insure.

Shopping for the best rate and looking for insurers who offer EV discounts can help offset higher premiums. CNBC Select reviewed top insurers to find the best car insurance for EVs and hybrids, based on rates, discounts and other factors. See our methodology to learn how we made our choices.

Who's this for? Lemonade's pay-per-mile program uses mileage to determine premiums, so infrequent drivers pay less. Coupled with the discount for driving an EV or hybrid and you could be looking at serious savings.

Standout benefits: Tesla drivers in Arizona, Colorado, Indiana,and Oregon can get 50% off every mile driven using Tesla's full self-driving (FSD) supervised technology. Lemonade also offers policies that cover charging stations and emergency charging if your battery dies on the road.

Who's this for? If you've just joined the EV revolution, Geico's 15% new-vehicle discount applies to cars under three years old.

Standout benefits: If you have another car in your garage (EV or not) Geico has a multi-car discount worth up to 25%.

Who's this for? State Farm offers generous rate reductions for families, including a student discount of up to 25% and one for enrolling in an approved driver education course.

Standout benefits: If your EV is being repaired after a covered collision, State Farm has generous rental reimbursement coverage to make sure you're still able to get around.

Who's this for? In addition to discounts for both hybrids and EVs, Travelers offers bundling discounts when you pair your auto coverage with a homeowners, condo or renters insurance policy.

Standout benefits: Travelers' Responsible Driver Plan^℠ includes accident and minor violation forgiveness. Extended new car replacement features (up to five years) and rideshare coverage are also available in many regions.

Electric vehicles are often more expensive to insure, but there's no fundamental difference in how EVs and gas-powered vehicles are insured. EVs can be insured with liability, collision and comprehensive coverage.

On average, EVs are 42% more expensive to insure than gas-powered vehicles, according to data from insurance platform Insurify. In 2026, a full coverage policy for an EV averaged $3,159 per year, compared to $2,218 for a combustion-engine vehicle.

Higher price tags on EVs and hybrids make replacing a vehicle more expensive. Other factors include:

1. EVs often use expensive and harder-to-source components, particularly battery packs and specialized electronics.
2. Fewer repair shops may have the equipment and training needed to work on EVs, which can increase labor costs and repair times.
3. A collision that affects an EV battery means higher repair or replacement costs.
4. There's less historical data on newer EVs, so insurers may be more conservative when setting premiums.

While rates vary greatly, hybrids cost about 6% more a year to insure on average than gas-powered vehicles. In part, it's for to the same reasons EVs are pricier to insure: Higher sticker prices, hard-to-find parts and a shortage of repair technicians.

But hybrids' complicated two-part power systems require specialized mechanics, which drives repair costs up. And, because hybrids are so quiet, insurers view them as having a higher risk of accidents with pedestrians and cyclists.

There are a few ways you can save on premiums for an electric vehicle or hybrid:

• Look for a "green" discount: Insurers like Farmers, Lemonade and The Hartford offer discounts for alternative-fuel vehicles.
• Raise your deductible: Your deductible is the amount you'd pay if you were involved in an accident. Increasing your deductible from $200 to $500 could help you save 15% to 30% on your comprehensive and collision coverage, according to the Insurance Information Institute.
• Bundle home and auto insurance: Whether you rent or own your home, getting your auto insurance and renters or homeowners insurance from the same company could help you get a discount, typically between 15% and 25%.
• Improve your credit score: In most states, your credit score can factor into your insurance premiums. Drivers with poor credit (a FICO Score below 579) pay an average of 105% more for full coverage than those with excellent credit (a FICO score of 800 or above), according to data from Bankrate.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of car insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To determine which auto insurance companies are best for electric vehicles, CNBC Select analyzed over a dozen U.S. insurance companies. We focused on the following features:

• EV discount: We considered the availability of discounts for EVs, hybrids and other alternative fuel vehicles
• Cost: Using premium data from The Zebra, we looked for companies with the lowest rates for popular electric cars.
• Availability: We gave additional weight to companies that issued policies in more states.
• Customer satisfaction: We reviewed companies' rankings on J.D. Power customer satisfaction surveys and the volume of complaints reported to the National Association of Insurance Commissioners. We also considered a carrier's Better Business Bureau grade.
• Online access: We prioritized brands that provided online quotes.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools. 

Based on these criteria, the companies with the best car insurance for electric vehicles are:

• Best for low-mileage drivers: Lemonade
• Best for bundling: Travelers
• Best for new electric cars: Geico
• Best for families: State Farm

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