5 Unexpected Costs of EV Ownership and How to Plan for Them

Electric vehicles are quickly gaining attention among consumers thanks to their improved mileage ranges, faster charging, and the potential for a $7,500 discount thanks to a federal EV tax credit.

But EVs are more expensive than their internal combustion engine (ICE) counterparts, with the average price of an electric vehicle now $51,762, more than $3,800 pricier than the average ICE vehicle.

And then there are unexpected costs of owning an electric vehicle that can potentially drain your bank account. Here are five you should consider if you're planning for an upcoming EV purchase. 

1. Repair costs

Maintaining an electric vehicle will, in general, be less expensive than owning a gas-powered vehicle, but EV owners should know that when you do need something repaired, it'll likely be more expensive. 

The latest data shows that the average repair cost for an EV is $269 more than a traditional vehicle, and some EVs are much more expensive. For example, repairing a Tesla costs a whopping $1,347 more on average.

The higher repair costs come from the unique design of some EVs, battery repair and replacement costs, a lack of EV mechanics, and the cost of replacement parts. 

2. Car insurance

Not only will you pay more to repair your EV, but you'll also pay more to insure it. Car insurance companies have noticed the higher repair costs for electric vehicles and adjusted premiums accordingly. 

It's difficult to nail down how much more you'll pay to insure an EV over an ICE vehicle because other factors contribute to the cost, including your driving record, where you live, and what vehicle you own.

The higher costs make it all the more critical for EV owners to shop around for car insurance to find the best deals. 

3. Battery replacement 

One of the most costly parts of an electric vehicle is its battery, which accounts for up to 40% of the vehicle's cost.

This means it will be very expensive when it needs to be repaired or replaced. While some warranties and insurance can cover the cost, if neither applies, you could be on the hook for $5,000 to $20,000, depending on your vehicle. 

4. Time

Most of the time, charging your EV won't cost you more money than a tank of gas. But even if the electrons you put in your EV are cheaper than gasoline, the time it takes them to travel from the charger to the EV's battery will certainly cost you.

According to the U.S. Department of Transportation, some of the fastest charging, which uses a 350kW system that's not available everywhere, takes between 20 minutes to one hour to get a battery to 80%. 

Remember that you'd need to buy an EV that can handle these fast-charging connections -- not all of them can -- and charging stations are not as common as gas stations. 

5. Home charging equipment 

Some automakers may offer rebates or discounts on home chargers, but you may still end up footing part of the bill, which can be a hefty one. 

Capital One says home EV-charging equipment costs can range from a few hundred dollars to thousands of dollars, depending on what level of charging you're doing and what vehicle you own. And if you need to upgrade your home's electrical connections to handle the added charging capacity, you may end up paying even more. 

How to plan for EV costs

The most obvious way to plan for these costs is to put extra money into your savings account. If you're planning to buy an EV or already own one, it might be worth automating monthly deposits into a bank account in case of an unexpected EV cost. 

Additionally, you may want to spend a little extra time comparing car insurance rates. Car insurance is an annual expense you can't avoid, so shopping around for the best deal could save you a significant sum every year.

Get quotes from multiple car insurance companies to ensure they'll cover the EV repair costs you might need, and try to weed out the coverage you might not use.