Self Financial has shared a cost comparison of electric vehicles and ICE vehicles by state. The guide points out that many people often want to know how much an EV would cost when it is compared to gas alternatives. The guide considers several factors in the calculations, such as fuel, energy, mileage, insurance, EV incentives, taxes, registration fees, maintenance, and emissions tests.
Some key statistics from the guide include their estimate for the average annual cost to run an EV in the US — $2,722. The average annual cost to run a gas vehicle in the US is $3,356. Oregon is the cheapest state to run an EV (annual cost of $1,810), while Michigan is the priciest state to run an EV ($4,276 annually.)
For gas vehicles, North Carolina is the cheapest state to operate one ($2,621 annually) as well as the second cheapest to operate an EV ($1,836 annually). California has the highest adoption of EVs in the US, but is the 7th highest state for the cost of an EV. Of course, California has a high cost of living in general.
The guide also analyzed the costs for the Tesla Model 3 and compared that with the cost of a premium gas-powered equivalent (BMW 3 Series). It noted that the BMW is $1,660 more expensive annually than the Tesla.
The guide has an interactive map which you can use to compare the costs in each state. Looking at my state, Louisiana, the cost of an EV annually is $3,500, while the cost of a gas vehicle annually is $4,148.
Price Comparison over 25 Years
The guide also looked at the costs of ownership over a period of 25 years. The three vehicles analyzed for this comparison were the Tesla Model 3 ($110,368), Toyota RAV 4 ($111,464), and BMW 3 Series ($151,880). These prices include the purchase prices of each vehicle split over the first 6 years.
EV incentives were factored into Self Financial’s calculations in the interactive map. The states that have incentives and/or discounts are as follows:
- New Hampshire
- New Jersey
- New York
- North Carolina
- Rhode Island
Fuel Cost per Mile
In order to drive the annual milage of 13,474 miles, which was used on a state-by-state basis for how much the costs were per mile, 3,369 kilowatt-hours are needed for the drive. This would mean that an electric car’s cost per mile is just over $0.03. Self Financial’s gas car comparison cost was just over $0.06 — just looking at the fuel costs.
The guide found that the average insurance cost for an American EV driver was $1,674. Michigan led as the most expensive state, at $3,128, and North Carolina was the lowest priced, at $1,038.
The average cost for insurance for a gas car in the US is $1,232. Michigan also led as the most expensive state, at $2,032, and North Carolina as the cheapest, at $764. However, this comparison is basically pointless here since electric vehicles are just typically in higher classes and there no real low-end options like there are for gas cars.
Based on annual mileage of over 13,000 miles, the annual costs of maintenance for a Tesla Model 3 is estimated to be $190 annually. In comparison, the average annual cost of maintenance for the most popular gas car in the US, the Toyota Rav 4, is $964,60. That’s a difference of $774.60.
In the end, you can hover over individual states on the interactive map to see how the calculations broke down. Just remember that these are all averages full of assumptions.