EV Cost to Drive #3: Insurance & Fuel

As a new first-time owner of an electric vehicle, I thought it would be helpful to do a series of posts on some of the questions I had getting my first EV, a 2016 Chevy Spark EV, in January 2019.

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This time around talking EVs, let’s talk bigger concerns – like fuel, insurance and the cost of battery replacement.

If you’re concerned about the long-term costs of owning an EV, I’ve often been told a good rule of thumb is to check the vehicle’s auto insurance rates. Insurance companies know if a vehicle is expensive to repair in the case of an accident, plus they include other things like availability of parts, which all factor into the ultimate premium you’ll pay. For example, Teslas tend to rank a bit higher, because availability of parts is a problem compared so a major company like GM or Ford. In my case, the insurance on my Spark EV is just a few dollars higher than my wife’s 2007 Pathfinder. That would be good enough, but I’ve also reported vehicle usage at 8,000 miles a year for the Spark, and only 4,000 miles for our Pathfinder. Nearly the same rate for twice as many anticipated miles – not bad.

What about fuel – in our case, electrons versus gas? I’ve been keeping pretty meticulous records of my driving and fill-ups since purchasing the Spark in January. My bill for fuel has ranged from 5 to ten dollars per month. Driving the same number of miles in our Pathfinder would have cost me between $110 and $130 per month in gas. In addition, all Level 2 charging stations in my area are no cost to use, so that can drop your bill even further.

(NOTE: Part of my savings comes because NV Energy (our electric utility in Las Vegas) offers special rates for EV owners for off-peak charging. With their program, my rates at night are less than half of the standard rate. Of course, all utilities are different, so check with your local utility if they offer such a program.)

Of course, everyone’s biggest concern is battery replacement cost. Now there’s no doubt a battery pack for an EV will be expensive if it needs to be replaced. Estimates I’ve seen range anywhere from $3,000 to $6,000 – about the same cost if you blew an engine in a gas vehicle. But there are two factors to keep in mind.

1. Manufacturer’s warranties. Major brands have learned that the fear of battery failure is a major concern among potential buyers. And much like the rest of your vehicle, it has a warranty covering battery life. What about used vehicles? In most (but not all) cases, the warranty transfers to other owners. If you’re really concerned, look at certified Pre Owned vehicles. My Spark EV is a CPO, and the battery warranty extends to 100,000 miles.

2. How often do battery failures actually happen? The vast majority are not failures, but a loss of storage capacity or range. This is covered in the warranty, and each brand is different. It can also be affected by how the battery was cared for – factors like how often was it “fast charged” versus lower level charging, whether it was kept in extremely hot conditions, etc. While EVs are certainly sturdy and built for long term use, even an electric vehicle needs a little TLC!