How Much Cheaper Is EV Charging vs. Buying Gas?

While inflation has cooled off recently, the high cost of nearly everything is still eating into Americans' budgets.

And the price of gas isn't helping. The average cost of a gallon of gasoline is $3.51 right now, according to AAA. That number is down slightly from last year, but higher than last month's gas prices.

Some Americans are fed up with fluctuating gas prices and have opted to buy electric vehicles instead. But is it actually cheaper to charge a battery than to fill the gas tank? Let's take a look.

You could save big with EV charging

The cost of electricity can change, but it doesn't fluctuate in the same way that gasoline prices do. And, for the most part, electricity is much cheaper than gas.

Research shows drivers can save up to $1,000 annually by charging their vehicle vs. filling up with gas.

Here's what some of the latest EV charging vs. gasoline data found:

• Charging an EV is cheaper than filling up with gas in all 50 states, according to The Washington Post.
• Car owners could save $700 annually, and truck owners could save $1,000.
• The average EV owner spends 60% less to power their vehicle than owners of gas-powered vehicles.
• Consumer Reports research shows that a typical EV owner saves between $800 and $1,000 by using electricity instead of gas to fuel their vehicle.

Another benefit for some potential car buyers is the recent introduction of tax credits for EV purchases. More than a dozen EV models qualify for either a $7,500 or $3,750 credit, which can be immediately applied to the price of the car when you buy it.

With lower costs to fuel up and government-sponsored financial incentives, it's no surprise that nearly 30% of Americans say they'd consider buying an electric car.

This could give EV owners sticker shock

Unfortunately, it's not all sunshine and rainbows for EV owners. Car insurance premiums are often more expensive for EVs than gas-powered vehicles.

Progressive Insurance says that electric vehicles are more complex, and their parts are more expensive to replace than traditional vehicles. Their batteries are also very expensive to replace, costing between $4,000 to $20,000.

This has caused some insurers to write off EVs as a loss if they're involved in an accident, rather than pay to repair them. This is expensive for car insurance companies, which then pass the cost onto their customers.

The best way to save on car insurance is to compare quotes. Research from Jerry Insurance shows that 60% of people who comparison shop for car insurance end up saving money on their premiums.

Car insurers weigh your driving history, credit score, where you live, and other factors differently from their competitors. To find the cheapest car insurance, get a few quotes from companies online and compare the premium amounts, available discounts, and deductible costs.

Even if you don't own an EV, you can likely save on your insurance by switching. Car insurance premiums are up an average of 26% from 2023. Whether you're considering buying an EV or planning to go the traditional route with your next car purchase, spend some time getting a few insurance quotes. Your bank account will thank you.