a person plugging their electric vehicle in to charge

The Benefits of Owning an Electric Vehicle in California

Over the past few years, electric vehicles have become increasingly popular among drivers nationwide. However, when it comes to electric vehicle (EV) ownership, no state has more EVs on the road than California. In fact, California drivers owned 39% of all EVs nationwide in 2021. With advantages such as lower fuel costs and state incentives, more and more drivers are making the switch to electric each year. Knowing the benefits of owning an electric vehicle in California can help you decide if you’re considering purchasing an EV.

How Much Does an Electric Vehicle Cost?

Since their introduction, electric vehicles have significantly reduced in price. However, despite improvements, a brand-new EV still typically costs more than its gas counterpart. But, as the electric vehicle industry continues to advance, we can expect to see the price gap between the two close. In fact, major manufacturers such as Chevrolet, Nissan, and Tesla have all recently lowered the cost of their entry-level EVs.

If you’re searching for the cheapest EV in 2023, consider the Chevrolet Bolt EV. Retailing at $26,500, the Chevrolet Bolt is the most affordable EV of 2023, followed by the Nissan Leaf, which retails for $28,040. For comparison, the Mercedes-Benz EQS 580—one of the most expensive electric vehicles on the market—starts at $125,950. Why is there such a drastic price difference? Aside from brand recognition, luxury EVs come fully loaded with the latest technology, safety features, and performance stats.

What Are the Benefits of Owning an Electric Vehicle in California?

Owning an electric vehicle has more benefits than just skipping the gas line. For one, you can earn up to $7,500 in federal tax credits just for purchasing a new electric vehicle. Even if you buy a used EV, you may still qualify for tax credits of up to $4,000. Availability ultimately depends on several factors, such as the vehicle’s MSRP, final assembly location, and more. Because these are federal tax credits, you won’t receive a check in the mail. Instead, your credits from purchasing an EV will apply to your annual tax burden.

Besides federal tax credits, many states also offer additional electric vehicle incentives. For example, California’s Clean Vehicle Rebate Project (CVRP) encourages Golden State drivers to purchase electric vehicles with rebates of $1,000 to $7,500 for those eligible. Drivers must meet gross annual income requirements to qualify for a CVRP rebate, which caps incomes at $135,000 for single filers and $200,000 for joint filers.

In addition to federal and state benefits, you may qualify for additional incentives depending on where you live. Visit California’s Drive Clean website to learn more about the electric vehicle incentives available.  

How Does Car Insurance Work for Electric Vehicles? 

Purchasing a car insurance policy for your electric vehicle follows the same process as buying car insurance for a gas car. The main difference, however, boils down to cost. 

As mentioned, EVs are typically more expensive than their gas counterparts. Because of this difference, insurance for electric vehicles is also more costly. Although EVs have much fewer moving parts, the technology and systems EVs rely on can be expensive to repair or replace following a collision. Additionally, repairing an electric vehicle requires training that not all mechanics may be familiar with, which increases labor costs. Considering these factors, insurance providers charge EV policyholders higher premiums to reflect their claim payouts. 

Although car insurance is typically higher for electric vehicles, it’s important to remember that you’ll still be eligible for typical discounts such as good driver, multi-policy, and loyalty discounts. 

What Does It Cost to Charge an Electric Vehicle in California?  

Many consumers go electric to ditch the gas line once and for all. That’s because charging an EV will cost significantly less on average than filling up a gas tank. However, the actual cost to charge your EV will ultimately depend on its battery size and the price of electricity where you live.

Based on information collected by the Energy Information Administration, the average cost of electricity in California is 19.65¢ per kilowatt hour (kWh). Using this price point and the Chevrolet Bolt (65 kWh battery with a 259-mile range) as an example, it would cost $12.77, or 4.93¢ per mile, to fully charge your Chevrolet Bolt. 

For comparison, you’d pay $49.42 to go a similar distance in a 25-mpg gas-powered vehicle at a gas price of $4.77 per gallon (the average gas price in California at the time of this writing).

How Do I Charge My Electric Vehicle? 

You will have three options for charging your electric vehicle: level 1, level 2, and DC fast charging.

Level 1: The slowest charging rate available for EVs. Level 1 chargers provide approximately 5 miles per hour of charge. These charging stations can plug directly into your home’s standard outlet without requiring special installations or rewiring.

Level 2: Medium charging rate of approximately 25 miles per hour of charge. Level 2 charging stations can be added to your home but require a professionally installed 240-volt outlet on a dedicated circuit. These charging stations typically cost around $500 to $700, excluding installation costs. Some public centers, such as malls or grocery stores, offer level 2 charging.

DC fast charging: This option is the fastest EV charging option available, providing up to 250 miles per hour of charge. These chargers require a 480-volt connection and utilize DC power. Due to their requirements, you cannot install DC fast chargers at home. Instead, these chargers are typically found in public locations such as rest stops or parking lots.

Speak to A California Insurance Expert

Are you considering owning an electric vehicle in California? If so, we recommend you speak with an insurance expert to understand how your insurance rate may change. Although your premium may increase, the savings you gain in other areas through fuel costs and incentives may well be worth it.

At Orion Indemnity, our team of knowledgeable insurance agents dedicates themselves to helping you find a California car insurance policy that works best for you. To learn more about the coverage options available, call us today at (833) 336-7466.



The information in this article is obtained from various sources and is offered for educational purposes. Furthermore, it should not replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. No warranty or appropriateness for a specific purpose is expressed or implied.