4 Electric Vehicle Costs You May Not Have Thought About

There's a lot of talk about savings in conjunction with electric vehicles -- saving the planet, saving money on gas, and saving time thanks to fewer maintenance requirements. But EVs bring plenty of unique costs as well.

If you're thinking about purchasing one in 2024 or beyond, it's important to be aware of these so you don't run into an unexpected headache. Here are four EV expenses you may not have thought about.

1. Higher auto insurance premiums

Several factors influence auto insurance premiums, but one of the most significant is the vehicle's make and model. More expensive vehicles cost more to fix, so insurers charge more to cover them. Though EV prices are coming down, they remain significantly more expensive than their gas-powered counterparts. In some cases, they can cost over $10,000 more than comparable gas-powered models.

EVs also have specialty components that fewer mechanics know how to fix. Those that do often charge a premium for their work. We may see these costs come down in the future, but for now, drivers have to budget for them.

The best way to do this is to grab quotes from several top car insurance companies. Enter the vehicle you're thinking about purchasing and see how much the insurance premiums are. Compare this to what you're currently paying to decide if that's feasible for you.

2. Higher registration costs in some states

Many states use gas taxes to help construct and maintain their highways. Owners of gas-powered vehicles frequently fill up and contribute to this fund. But those driving electric vehicles don't need to. As EVs have gained market share, some states have felt the pinch this lost revenue puts on their budget.

To make up for it, 24 states currently charge higher vehicle registration fees to EV owners. These extra costs go toward highway maintenance. The surcharges vary by state, from just $50 more in Hawaii to $200 in Ohio, West Virginia, and Wyoming. Keep in mind that these are annual charges and states may increase them over time.

3. Cost of a home charger

Public EV chargers are useful when you're out and about, but many EV owners also choose to invest in home chargers so their cars are ready to go at a moment's notice. This is a one-time cost, but it can be pretty expensive, especially for those who opt for faster chargers.

A low-end charger costs between $300 and $600, according to Capital One, plus labor costs can add another $1,000 or more. The fastest charging stations can cost $12,000 to $45,000, plus labor costs.

It's best to price out your options ahead of time. If you're not able to afford a home charger now, you may have to save up for one. You might also want to estimate the electricity usage, as this will be an ongoing cost once the charger is installed.

4. Lost time in cold weather

Recent news reports have highlighted a problem that many EV owners hadn't thought much about before: Freezing temperatures can make EV batteries drain faster and charge more slowly. This can result in hours of waiting at charging stations in unpleasant weather.

For most, this isn't a direct financial cost, though it is inconvenient. But for those who use their vehicles for work, like ride-hailing drivers, it could take a serious toll on their income. A hybrid vehicle might be a better option for these individuals.

None of this is intended to dissuade you from purchasing an EV if you really want one. There are plenty of things to love about them, too. But it's important to have a balanced perspective of the pros and cons before you make the jump. If you're a little hesitant, you may prefer to wait a year or two for EV prices to drop before buying.