He said states with cheap electricity and expensive gas are where the EV transition is most likely to stick, driven by market forces.
The Insurance Catch
However, the fuel savings analysis does not account for insurance costs, where EVs tend to be more expensive.
A separate Insurify study found that in Washington, insuring a newer EV costs 30% more than a comparable gas model—$3,260 versus $2,515.
Oregon's gap is even wider at 36%, and Nevada's is 26%.
Nationally, the average EV costs $3,159 per year to insure, compared to $2,218 for a gasoline car—a 42% difference.
But when comparing only 2024-and-newer models, the gap narrows to 18%.
In some states, such as Montana and West Virginia, newer EVs are actually 4% cheaper to insure than their gas counterparts.
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While insurance costs do not erase fuel savings entirely, they mean that the true cost of running an EV depends heavily on local insurance rates as well as the gap between gas and electricity prices.
