Electric vehicles are everywhere right now. In California, they are more than popular—they are the future by law. By 2035, new car sales in the state must be electric-only. That deadline is less than a decade away.
EVs are often marketed as the ultimate money-saving solution. No gas. Less maintenance. Fewer moving parts. On paper, that all sounds fantastic.
But there’s another side of EV ownership that rarely makes it into advertisements: insurance costs, repair complexity, tire wear, and depreciation risk. And for many owners, those costs quietly erase a large chunk of the savings they expected.
Let’s break down the real, often-overlooked costs of owning an electric vehicle—using Tesla as the most common and illustrative example.
Yes, EVs Save Money on Fuel — That Part Is True
There’s no denying the upside. Electric cars dramatically reduce fuel costs.
For high-mileage drivers—rideshare drivers, commuters, delivery workers—the savings can be massive. Charging at home is far cheaper than filling a tank, and even public charging can undercut gas prices in many regions.
EVs also eliminate:
- oil changes
- exhaust systems
- spark plugs
- emissions testing
From a basic maintenance standpoint, electric drivetrains are simpler and cheaper to keep running.
But fuel and oil are not the full cost of ownership.
Insurance: The Biggest Shock for New EV Owners
One of the most common surprises for EV buyers is insurance.
When insurers price a vehicle, they don’t care how eco-friendly it is. They care about:
- repair costs
- likelihood of being totaled
- parts availability
- labor complexity
And this is where many EVs, especially Teslas, struggle.
Why EV Insurance Is More Expensive
Electric vehicles often cost significantly more to insure than comparable gasoline cars. In some cases, thousands more per year.
Why?
- High repair costs: EVs are packed with sensors, cameras, radar modules, and control units—many embedded into bumpers, doors, and body panels.
- Battery risk: Even minor structural damage near the battery pack can lead insurers to declare the car a total loss.
- Limited repair networks: Not all body shops are certified or equipped to repair EVs, especially Teslas.
- Long repair times: Specialized parts and procedures increase labor hours and rental car payouts.
Some insurers go even further:
- requiring pre-approval before insuring EVs
- enforcing waiting periods
- refusing certain models altogether
To an insurance company, many EVs are effectively luxury vehicles with unusually high total-loss risk.
Repairs: Small Accidents, Big Bills
A minor fender-bender in a gasoline car is often just cosmetic.
In an EV, it can be catastrophic.
Why EV Repairs Escalate Quickly
- Cameras and sensors are integrated into body panels
- Radar alignment requires specialized equipment
- Aluminum and mixed-material construction raises labor costs
- Structural battery packs limit repair options
In some cases, damage that would be repairable on an older ICE vehicle results in an EV being totaled.
This is why insurers are cautious—and why premiums reflect that risk.
Limited Repair Options Make Things Worse
Many EV owners assume they can take their car anywhere for repairs.
That’s often not true.
- Many independent shops won’t touch EVs
- High-voltage systems require special training
- Tesla-approved repair centers are limited in number
- Long wait times increase claim costs
From an insurer’s perspective, every delay adds expense. From an owner’s perspective, it means more time without a car and higher premiums.
Tire Wear: Performance Has a Cost
Electric cars are fast. Very fast.
Instant torque is one of their best features—but it comes at a price.
Why EV Tires Wear Faster
- EVs are heavier due to battery packs
- Instant torque stresses tires during acceleration
- Performance-focused traction systems grip aggressively
Studies and fleet data show that tires on many EVs wear out around 20% faster than average. That means:
- more frequent replacements
- higher running costs
- less benefit from fuel savings
Performance is fun—but physics always sends the bill.
Depreciation: The Silent Budget Killer
EV depreciation has become one of the most volatile parts of ownership.
Rapid price changes, government incentives, and evolving technology mean that used EV values can swing dramatically.
If new prices drop or incentives change, used values often follow immediately.
This makes EV ownership particularly risky for:
- short-term buyers
- frequent upgraders
- anyone financing with minimal down payment
Fuel savings don’t help much if resale value collapses faster than expected.
Batteries: Reliable, but Not Cheap
Modern EV batteries are generally reliable. Failures are rare.
But when something does go wrong, replacement costs are enormous.
Even outside of full replacement, insurers worry about:
- hidden damage
- thermal risk
- long-term liability
That risk is priced directly into premiums.
EV Ownership Isn’t Bad — It’s Just Not Simple
Electric vehicles aren’t a mistake. They’re not a scam. And they’re not going away.
But they are not universally cheaper than gasoline cars once you account for:
- insurance
- repairs
- tires
- depreciation
For some drivers—especially high-mileage commuters with home charging—EVs still make excellent financial sense.
For others, the hidden costs can erase much of the advertised savings.
The Smart Way to Approach EV Ownership
If you’re considering an EV, a few strategies reduce risk:
- Get insurance quotes before buying, not after
- Consider leasing if depreciation worries you
- Buy used, letting someone else absorb early value loss
- Compare total cost, not just fuel savings
- Be realistic about repair access in your area
Electric cars reward informed buyers. They punish assumptions.