It can be a very exciting time in your lives to shop for an electric car. While you may be imagining trim levels and color options, and how much money you can save by not having to pay the pump, car insurance might be the last thing you think of.

For first-time buyers of EVs, it may surprise you to learn that insurance costs for your battery-powered vehicle are higher than the price of your gasoline guzzler.

NerdWallet analyzed 2022 Tesla Model Y car insurance rates and found that the national average was $2,040 per annum for full coverage insurance. This is 25% more than the national average for a 2019 Toyota Camry.

If you’re not prepared, high electric car insurance premiums could add financial stress to an already costly purchase. Here are some things you need to know.

Why is electric car insurance so expensive?

Electric vehicles can be insured in the same way as gas cars. Both vehicles have the same coverage.

Hence, electric vehicles are more costly to insure. It all comes down to cost:

  • Sticker price. The batteries that power EVs are more expensive than those powered by gas engines. Replacing a gas engine with high-powered can run up to $10,000. However, electric car batteries can be replaced for as little as $2,500 to $20,000.

  • Specialized repairs. EVs need specialized equipment and mechanics. If your car is damaged in an accident, you will need to have it repaired at an EV-certified facility. Tesla requires that owners take their Tesla cars to either a Tesla-approved collision center or a Tesla-approved service center.

Higher prices and fewer repair shops can mean higher insurance premiums. This is because insurers will have to spend more money to replace or repair your electric car in the event it is stolen or damaged. Because your electric car could be left in the shop for longer than a regular car, your insurance company might have to pay more.

However, electric vehicle insurance won’t always be more expensive. Insurance premiums will rise as more EVs are on the road and production costs drop. It’s difficult to predict when this might occur.

How do I save money on electric vehicle insurance?

There are many factors that affect the price of an auto insurance policy. There are some things you can do in order to get a lower price.

  • Compare auto insurance quotes from different companies. It is often easier to find a lower price by shopping with at least three companies. NerdWallet analyzed 2022’s national insurance rates for a Tesla Model Y. The average price of full coverage insurance varied widely by company.

  • Ask about discounts. There are many car insurance companies that offer discounts. But you won’t know until you ask. Some companies also offer discounts for electric vehicle drivers, or simply owning a new car.

  • Increase your deductible. This is the amount you pay upfront to your insurer before they make a payment after an accident. You can usually raise or lower your deductibles. Higher deductibles mean lower premiums, which is more money in your pocket. If you have to file a claim, be ready to pay more out of pocket.

  • Pay per mile. If you don’t plan to drive a lot in your new electric vehicle, pay-per-mile. Pay-per-mile insurance charges a base rate and a per mile rate. If you aren’t able to drive, or rely on public transportation a lot, this could be a great way to save money. This type of insurance is not offered by all companies, and the ones that do may not be available in your state.

Where can you get electric car insurance?

Auto insurance companies don’t require an electric vehicle policy. Many will be able provide a quote.

To get quotes from insurance companies, you can either contact them directly or use NerdWallet’s auto insurance comparison tool. You can also reach out to independent agents or insurance brokers. Independent agents and brokers work with many insurers to find the best policy for you.

Tesla Insurance is an option for Tesla owners. This insurance is available to Tesla owners, current and new, for Teslas as well as non-Tesla cars. To generate a monthly premium, it uses driver’s real-time driving habits and other factors. Tesla Insurance is not available in all states.