More Illinois drivers are switching to electric vehicles (EVs) every day, but many aren’t ready for the insurance surprises that come with them. EVs might save you money at the pump and help the planet, but they need a different approach to insurance than your old gas car. Our team at American Auto Insurance in Chicago, Illinois, has put together this guide to help you figure out what’s required, why you’re paying more, and how to get the best deal on your Illinois EV insurance.
Understanding EV Insurance Requirements in Illinois
In Illinois, you’ll need the same basic liability coverage whether you drive a Tesla or a Toyota. State law demands $25,000 for bodily injury of one person per accident, $50,000 for the injury of more than one person, and $20,000 for damage to someone else’s property. While the minimum coverage keeps you legal, you should look into higher coverage limits because your EV costs more to fix and replace.
Illinois uses an electronic insurance verification system to confirm whether registered vehicles are properly insured. If the system can’t confirm that your vehicle is insured, you’ll receive a notice with instructions to prove your policy. Ignoring the notice or driving without coverage results in a suspended license plate and fines.
Why EV Insurance Costs More
EV insurance costs more because of their higher purchase price and expensive parts, especially the battery, which leads to increased repair and replacement costs. Pricier replacements mean higher premiums. Per Insurify data, EVs cost about 49% more to insure, averaging $4,058 per year vs. $2,732 for gas-powered cars.
Limited EV-trained mechanics can drive up repair time and costs. Battery replacement expenses can range from $5,000 to $20,000 depending on your vehicle’s make and model, battery size, and manufacturer.
Illinois-Specific Factors Affecting EV Insurance Rates
Illinois winters are harsh on electric cars. Heater use can cut an EV’s range by 41% at an ambient temperature of 20 degrees. Conversely, running the air conditioning in summer when temperatures hit 95 degrees can reduce range by 17%. These extreme temperatures can impact driving patterns, potentially causing more accidents that insurers factor into insurance rates.
Charging infrastructure affects insurance costs, too. Illinois has 4,445 public charging stations for 99,573 EVs — that’s roughly 22 cars per charger. Limited charging facilities can create range anxiety, potentially changing driving behavior.
Your location within Illinois matters as well, with Chicago drivers paying much more than rural residents. However, smaller towns may lack EV-trained repair shops, which can affect claim costs and timing.
Essential Coverage Types for Illinois EV Owners
For EV drivers, standard insurance coverage matters more than ever. Collision and comprehensive coverage are practically must-haves given repair costs. Some auto insurance companies now offer charging equipment protection, covering both home chargers and accidents at public stations. Many policies include protection against battery theft or damage, as well as coverage for charging cables.
These specialized add-ons provide extra protection:
- Zero-depreciation cover pays out for full replacement costs without any deduction for depreciation.
- Return-to-invoice cover refunds your original purchase price if your vehicle is totaled or stolen.
- Electric motor protection covers the motor, battery, and vehicle’s charging system.
- Guaranteed asset protection (or GAP) insurance covers the difference between what you owe on your car loan or lease and the vehicle’s actual cash value if your car is declared a total loss.
Proven Strategies To Lower Electric Car Insurance Costs in Illinois
There are several ways to keep premiums down and obtain discounts on your EV insurance:
- Bundle auto insurance with home or renter’s insurance for up to 25% savings.
- Maintain a clean driving record for safe driver discounts of up to 30%.
- Shop around, as identical coverage can vary by hundreds of dollars between insurers.
- Keep your credit score healthy since it affects rates significantly.
- Raise your deductible, as this will lower your monthly bill.
Comparing EV vs. Gas Vehicle Insurance Costs in Illinois
EVs cost more to insure. For example, a Tesla Model Y averages $3,112 annually vs. $1,899 for a Toyota RAV4. However, total ownership tells a different story. The average annual cost to run an EV in the U.S. is $3,934 vs. $4,007 for gas cars, including insurance, taxes, gas, charging, and maintenance. EVs offer lower fuel and maintenance costs, which can offset higher insurance premiums.
Getting the Best EV Insurance Quote in Illinois
Before requesting quotes, gather your personal and vehicle information. You’ll need to supply your name, address, job, date of birth, license and Social Security numbers, vehicle specs (year, make, model, mileage, and vehicle identification number), and annual mileage, as well as details of any tickets, accidents, or traffic violations.
EV ownership keeps growing. According to Kelley Blue Book data, Americans bought 1.3 million new EVs in 2024, and sales are on the rise. This growth means insurers have to compete harder for your business. Don’t just chase the cheapest quote. Compare coverage types, deductibles, and limits, and check reviews for claims speed and service quality. EVs need specialized repair knowledge, so pick insurers with EV experience. For unique situations, such as SR-22 insurance, get a customized quote.
Secure Comprehensive EV Coverage in Illinois
Do you want to find EV insurance that won’t break the bank? At American Auto Insurance, we know the ins and outs of electric car insurance in Illinois. We’re local experts who understand what matters to Illinois EV drivers. Our team can help you protect your car without overpaying. Give us a call at 773-286-3500 or visit our website today. We’ll walk you through your options and build a policy that works for your car, your driving habits, and your budget.
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