Are EVs and hybrids more expensive to maintain than gas vehicles?
November-December 2024
There are over 3 million EVs on the road in the U.S. (photo courtesy Brandpoint)
story courtesy of Brandpoint
With a variety of options on the market, consumers who are shopping for a new vehicle have a lot to consider these days. Should they buy another gas-powered internal combustion engine (ICE) vehicle? Should they go fully electric? What about a hybrid? Regardless of vehicle type, shoppers need to understand the total cost of ownership before committing, as this will help minimize unexpected expenses and headaches.
When deciding between an ICE vehicle, hybrid or EV, here are some important distinctions to keep in mind:
FUELING/CHARGING COSTS
Because hybrid vehicles have both a gas engine and electric motor, they are more fuel efficient than strictly ICE vehicles, as they can switch between the two motors while driving. Additionally, hybrids never need to be plugged in because the battery is recharged via the gas engine, eliminating the need to install home charging or navigate public chargers.
When it comes to charging EVs, the Department of Energy reports that about 80% of all charging is done at home, which J.D. Power notes is the ultimate convenience and most satisfying aspect of EV ownership.
MAINTENANCE
When it comes to maintenance for ICE and hybrid vehicles, several upkeep items can add to the cost of ownership over time, such as air filters, oil changes and tire rotations. Both require similar maintenance schedules and incur comparable costs. One notable exception is that a hybrid’s battery will eventually need replacement, which can be costly, but U.S. law requires that all hybrids come with battery warranties of at least eight years or 100,000 miles, which should offer consumers peace of mind if they plan to keep the vehicle long term.
EVs, on the other hand, only need a few of these routine services as they lack an internal combustion engine, pistons, valves and moving parts. This can result in lower routine repair and maintenance costs than ICE and hybrid vehicles, but J.D. Power reports that EV owners replace tires more frequently than others. And like hybrids, the EV battery will also need to be replaced down the road, but all new EVs come with a generous battery warranty.
INSURANCE
While EVs may offer a number of advantages in terms of reduced maintenance and fueling costs, the cost of insurance might offset these potential savings.
“EVs cost more to insure versus their ICE counterparts because they generally cost more to buy, and consequently more to repair or replace,” says Stephen Crewdson, senior director of insurance business intelligence at J.D. Power. “And while today’s EVs have fewer moving parts, it can be more costly when they need replacement.”
“The best vehicle type for a particular consumer will ultimately come down to budget, lifestyle factors and personal preference. Hybrids serve as a great bridge between ICE and EVs by offering fuel efficiency and a reduced carbon footprint for consumers who aren’t yet ready to make the leap to an EV,” says Chong Gao, director of product management R&D at Mercury Insurance.