Will an Electric Vehicle Actually Save You Money?

Electric vehicles are elbowing their way into the automotive market as they try to become viable alternatives to their gas-powered peers. I've been a fan of EVs for a while, but I'm also practical enough to realize that they're not the most economical choice in every situation.

Pitting the cost of EVs against gas-powered vehicles is tricky because so many factors go into the overall cost of owning a car. So, with that in mind, here are a few costs you'll encounter with both EVs and traditional vehicles.

1. Energy savings winner: EVs

Consumer Reports conducted an in-depth comparison between EVs and gas-powered vehicles and found that electric vehicle owners can save between $800 to $1,000 annually by charging up at home versus visiting the gas station.

There's no catch-all number for energy savings, of course, because gas prices and electricity costs fluctuate and differ throughout the country.

However, additional research found similarly impressive results. Energy Innovation says the energy cost savings for owning an EV are between $715 and $1,074, and The Washington Post found that recharging an EV was cheaper than filling up at a gas station in all 50 states.

2. Repair costs winner: Gas-powered vehicles

Electric vehicles have fewer parts and, thus, could need fewer repairs over the long term than their gas-powered counterparts. But if you need to take your EV into the repair shop, it'll likely cost you more.

Recent data from Mitchell, a software provider for car insurance companies, found that EVs cost their owners an average of $269 more per repair. And owning a Tesla will set you back even further, as a repair costs an average of $1,347 more than for gas-powered vehicles.

Electric vehicles cost more to repair because body shop workers and mechanics often need more specialized training to repair EVs, there are usually more parts required to make the repair, and EVs have additional technology that drives up the price.

3. Insurance costs winner: Gas-powered vehicles

Electric vehicles often cost more to insure because they have complex and expensive components and longer repair times, according to Progressive Insurance. Consumer Reports notes that one of the most significant costs for insurance companies is an EV's battery, which can cost up to half of the price of the vehicle.

The high repair costs of EVs mean owners often pay higher insurance premiums. It also means that car insurance companies are more likely to declare an EV a total loss after an accident than gas-powered vehicles.

Insurance prices vary by state, coverage, vehicle, and your driving record, making it difficult to pinpoint how much more you'll pay with an EV. So, it may be a good idea to price out your potential car insurance costs with a provider before you buy an EV.

Verdict: It depends

While insurance premiums and repair costs are typically higher with EVs than for gas-powered vehicles, the long-term energy savings costs may outweigh the difference. But only sometimes.

Car and Driver compared the electric and gas-powered versions of a Ford F-150 and a Hyundai Kona in a three-year cost comparison. The authors looked at maintenance costs, fuel, and depreciation and found that the gas-powered Kona was cheaper to own than its electric counterpart. In contrast, the electric F-150 Lightning was cheaper than a comparable gas-powered F-150.

So, there are a lot of factors that contribute to the overall cost of ownership for an EV. Sometimes, they're cheaper than traditional vehicles, but not always. If your goal is to save money, it's probably best to just find the cheapest car that fits your needs -- and that may not be an EV.