High Costs and Safety Concerns: Why Millions of Americans Aren’t Buying Electric Vehicles

From a rise in affordable options to Tesla's recent recall, electric vehicles (EVs) have been making headlines lately. But despite the stir, many Americans aren't ready to make the switch — and price is a particular concern.

ValuePenguin asked more than 2,000 U.S. consumers about their attitudes toward EVs. In addition to going over consumers' top reservations, stick around for tips on deciding whether to make the switch — including how going electric may affect your auto insurance rates.

Key findings

Not all consumers are ready to go electric — here's what they're worried about

Although the U.S. government is ready to switch to EVs, many consumers aren't quite there. To help meet the federal goal of converting 50% of new car sales to electric vehicles by 2030, several initiatives have been introduced, including tax credits of up to $7,500.

Despite this, 36% of Americans say price is their major concern when considering EVs — the most common roadblock. Given the price of EVs, that's understandable. New EVs cost an average of $58,725 in January 2023, according to Kelley Blue Book estimates. While that's down 7.1% from a year ago (a notable achievement given that the average cost of all new cars has risen 5.9% in the same time), that cost may not be low enough for some consumers.

That's particularly true of low-earning Americans. While 40% of consumers making less than $35,000 cite cost as a top worry for EVs, just 28% of six-figure earners express similar concerns. That means low earners are 43% more likely to worry about the price tag the most.

ValuePenguin insurance expert Divya Sangameshwar says these concerns are warranted.

Following cost, a lack of charging stations (24%) and driving range (12%) are the top deterrents for consumers. Consumers with a master's degree (31%) and six-figure earners (28%) are particularly likely to cite charging station concerns. Meanwhile, men are much more likely to worry about a lack of driving range than women — 16% versus 8%, respectively.

While Sangameshwar understands these concerns, she believes the EV industry is rapidly changing — and many Americans aren't keeping up with the latest technology.

While there are about 47,200 publicly accessible EV charging stations in the U.S., according to an IEA analysis, President Joe Biden said during his 2023 State of the Union address that the country would build 500,000 EV charging stations.

"EVs have also shifted from first-generation models that barely ran for 100 miles on a charge to new and updated offerings that are now approaching 500 miles per charge," Sangameshwar says.

Self-driving tech may spark safety fears

It's not just the cost that's turning consumers off of EVs: Self-driving technology is also a major safety concern. Despite a growing number of EV manufacturers that plan to offer self-driving technology (with Mercedes, Volvo and Hyundai among the most recent adapters), 40% of Americans say a driverless car would make them feel much less safe on the road.

Older consumers are generally more wary of self-driving technology than younger ones. More than 8 in 10 (83%) baby boomers ages 59 to 77 say a driverless car would make them feel at least a little less safe on the road — that compares with:

Consumers wouldn't feel comfortable outside their cars, either — 45% of consumers say they'd feel much less safe as pedestrians around self-driving cars. By age group, all generations are more likely to feel at least a little less safe as a pedestrian than as a driver.

Older consumers are again less likely to feel comfortable around self-driving tech than younger consumers — 85% of baby boomers feel at least a little less safe as a pedestrian around a driverless car. That compares with:

Regardless of their comfort level, consumers agree: The human is responsible for any accidents that occur. Even if a car is being controlled by self-driving tech, 53% say the driver is at fault if they get in an accident.

Still, that means 47% believe the manufacturers are at fault. By demographic, those most likely to blame the manufacturer are:

This comes amid Tesla's most recent recall, involving this type of technology. The leading EV manufacturer announced in February that it was recalling nearly 363,000 self-driving cars, citing safety risks as the primary reason. In its investigation, the National Highway Traffic Safety Administration (NHTSA) said Tesla's "Full Self Driving" feature didn't sufficiently adhere to traffic safety laws — and it may violate traffic laws before drivers could intervene.

Despite a lack of awareness, most consumers believe cars with self-driving features should be more expensive to insure

Though those safety concerns are well-warranted, Americans' distrust of self-driving technology may also be driven by a lack of awareness. In fact, 29% say they know nothing about self-driving features such as lane assist, adaptive cruise control or hands-free steering — many of which may already be in their cars.

Women (35%) are more likely to not know anything about self-driving features than men (22%). Meanwhile, consumers whose highest education is a high school degree (42%) and those making less than $35,000 (39%) are also among the most likely groups to not know anything about self-driving technology.

It's also worth noting that 35% of Americans aren't willing to pay more for a car with self-driving capabilities. That's particularly true among:

79% are primarily driving gas cars

Although EV sales jumped by 65% in 2022, according to Kelley Blue Book estimates, 79% of Americans are primarily driving gas cars. By generation, baby boomers (87%) are the most likely to say they're primarily driving traditional vehicles, followed by 84% of Gen Xers.

Why are older consumers less likely to drive EVs? According to Sangameswhar, there are a few factors at play.

In a distant second, 4% of Americans say they own a hybrid. Those with a master's degree (12%), six-figure earners (7%), married Americans (6%) and Gen Zers (5%) are among the most likely to drive hybrids.

Gen Zers (11%) are the most likely generation to own an EV — whether purely electric, hybrid or plug-in hybrid. However, they're also most likely to report they don't drive or don't primarily use the same car — which means they may still drive traditional cars just as often.

Democrats are more likely to go green for the environment

Consumers' carbon footprint is top of mind for a lot of consumers when it comes to their next car purchase, though that often varies by political party. While only 14% of consumers say they'd consider environmental concerns when making their next car purchase, that percentage is significantly higher among Democrats (22%). Comparatively, 6% of Republicans say similarly.

Car tech in general is a much bigger factor among Democrats. While 27% of Democrats say they'd consider technology and accessories when choosing their next car, 22% of Republicans say similarly. In addition, Democrats are more willing to pay more for self-driving technology in vehicles — 29% versus 19%, respectively.

Regardless of whether they're sticking to gas cars or going electric, cost is vital for consumers when it comes time to buy a new car. Overall, 65% of Americans say they're concerned about the price tag. That's particularly true for:

Cost isn't the only factor on consumers' minds, though. After price, Americans consider fuel efficiency (56%), car size (42%) and appearance (31%) most in their decisions.

Men and women also have different considerations when buying a new car. Men are more likely to consider cost than women — 71% versus 59%. They're also more likely to consider both fuel efficiency — 59% versus 53% — and tax breaks — 12% versus 7%.

Thinking of making the switch? Here's what to consider

Getting a new car is a major financial decision, and navigating the EV industry can be particularly tough. Whether you're fed up with gas prices or want to go green for the environment, Sangameswhar says to consider the following factors before making the switch to EVs: