Auto Insurance
Tesla Model Y vs. Toyota RAV4: A State-by-State Insurance and Operational Analysis
As electric vehicle (EV) sales continue to soar, many Americans may wonder whether it’s time to make the switch. While not having to pay for gas may seem attractive, that’s not the only factor worth considering.
To help paint a better picture of the differences between electric and gas cars, we calculated insurance and operational (annual driving expenses) costs for an electric 2023 Tesla Model Y Long Range and a gas-powered 2023 Toyota RAV4 XLE — two models of the most popular electric and gas-powered crossovers.
Here’s what we found.
On this page
- Key findings
- Tesla Model Y more expensive to insure and operate than Toyota RAV4 — where gap is largest
- Driving costs for Toyota RAV4 significantly higher
- Connecticut worst state to own Model Y
- Oregon worst state to own RAV4
- Choosing between electric/gas for your next vehicle: Expert tips
- Methodology
Key findings
- Insuring and operating a Tesla Model Y Long Range is $1,047 more expensive on average than for a Toyota RAV4 XLE. This largely boils down to insurance premiums. The average annual cost of full-coverage auto insurance for a 2023 Tesla Model Y Long Range is $4,325 — 79.1% higher than the $2,415 for a 2023 Toyota RAV4 XLE.
- When comparing both models’ insurance and operational costs, the gap is largest in Michigan. Here, insurance and operational costs for a Model Y are $3,123 more on average than for a RAV4. Louisiana and Connecticut follow with gaps of $2,737 and $2,723, respectively. Meanwhile, insuring and owning a Model Y is more affordable in only three states: Oregon ($690), South Dakota ($344) and Pennsylvania ($133).
- Driving 13,476 miles — the annual average per American driver — would cost $1,469 for a RAV4 and $606 for a Model Y. Breaking that down, the Model Y costs 4.5 cents to operate per mile, versus 10.9 cents for the RAV4, or 142.2% more per mile. Not surprisingly, driving a Tesla is more affordable in every state, with Washington ($1,334), Oregon ($1,132) and Nevada ($1,105) having the largest gaps between the two vehicles.
- Connecticut is the worst state to own a Model Y. Specifically, Connecticut Model Y owners pay the third-highest annual insurance premiums, at $5,960, behind Michigan ($7,664) and Louisiana ($6,799). Based on the state’s electricity cost and the vehicle’s driving range, operating a Model Y in the state costs $1,011 a year — the sixth-highest across the U.S.
- Oregon is the worst state to own a RAV4. Breaking that down, Oregon has the second-highest insurance cost — $3,520 annually — and the fifth-highest operational cost, at $1,617 a year.
Tesla Model Y more expensive to insure and operate than Toyota RAV4 — where gap is largest
The annual cost to insure and operate a Tesla Model Y Long Range is an average of $1,047 more expensive than a Toyota RAV4 XLE.
What accounts for this gap? It’s largely due to insurance costs. In fact, the average annual cost of full-coverage auto insurance for a 2023 Model Y is $4,325, versus an average of $2,415 for a 2023 RAV4 XLE. That means yearly insurance costs are 79.1% higher for a Model Y.
Note: Our insurance cost averages were calculated via Quadrant Information Services, which compiles publicly sourced rates from insurer filings. However, it’s worth noting that Tesla offers private insurance in 12 states, which isn’t included in our findings.
According to ValuePenguin auto insurance expert Divya Sangameshwar, there are a few explanations behind the findings. "Tesla electric vehicles (EVs) are expensive to insure because they cost a lot of money to repair and maintain," she says. "Tesla drivers are also the most likely to get into crashes. The high cost of repairs and the high risk posed by reckless drivers enjoying how fast these cars accelerate is why insurers charge such a high premium for Teslas."
In fact, the average repair bill for an EV is $950 more expensive than for a gas-powered vehicle, according to a 2023 report from Mitchell, a technology and information provider for the collision repair industry. According to Recurrent, which specializes in EV battery information, replacing an EV battery outside a warranty can cost between $6,500 and $20,000.
Breaking down insurance and operational costs by state, the gap between a Model Y and a RAV4 is largest in Michigan. In Michigan, insurance and operational costs for a Model Y are $3,123 more on average than for a RAV4. Most notably, the average annual insurance cost in Michigan for a Model Y is $7,664, while the average for a RAV4 is a significantly cheaper $3,814 (though that’s still the highest for a RAV4 across all states).
3 states with the biggest gaps in insurance and operational costs between a Tesla Model Y and a Toyota RAV4
Rank | State | Annual insurance costs, Model Y | Annual insurance costs, RAV4 | Annual cost of driving 13,476 miles, Model Y | Annual cost of driving 13,476 miles, RAV4 | Combined costs, Model Y | Combined costs, RAV4 | Cost gap |
|---|---|---|---|---|---|---|---|---|
| 1 | Michigan | $7,664 | $3,814 | $701 | $1,428 | $8,365 | $5,242 | $3,123 |
| 2 | Louisiana | $6,799 | $3,172 | $431 | $1,321 | $7,230 | $4,493 | $2,737 |
| 3 | Connecticut | $5,960 | $2,779 | $1,011 | $1,469 | $6,971 | $4,248 | $2,723 |
Source: ValuePenguin analysis of insurance rate data from Quadrant Information Services, gas price data from AAA, electricity price data from the U.S. Energy Information Administration (EIA), fuel economy data from the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy (EERE) and average annual miles data from the U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA). Note: Insurance costs don’t include private insurance offered through Tesla.
Louisiana follows, with a RAV4’s insurance and operational costs averaging $2,737 less than a Model Y. Once again, insurance costs play the biggest role here: While a RAV4 costs an annual average of $3,172 to insure, a Model Y costs an average of $6,799. Following that, Connecticut rounds out the top three with a $2,723 gap.
Meanwhile, insuring and operating a Model Y is more affordable in only three states, leading with Oregon at a cost gap of $690 in the other direction. While a Tesla Y is still slightly more expensive to insure than a Toyota RAV4 in Oregon, operational cost differences play the largest role (more on that below). South Dakota ($344) and Pennsylvania ($133) follow.
Full rankings
States with the biggest/smallest gaps in insurance and operational costs between a Tesla Model Y and a Toyota RAV4
Rank | State | Annual insurance costs, Model Y | Annual insurance costs, RAV4 | Annual cost of driving 13,476 miles, Model Y | Annual cost of driving 13,476 miles, RAV4 | Combined costs, Model Y | Combined costs, RAV4 | Cost gap |
|---|---|---|---|---|---|---|---|---|
| 1 | Michigan | $7,664 | $3,814 | $701 | $1,428 | $8,365 | $5,242 | $3,123 |
| 2 | Louisiana | $6,799 | $3,172 | $431 | $1,321 | $7,230 | $4,493 | $2,737 |
| 3 | Connecticut | $5,960 | $2,779 | $1,011 | $1,469 | $6,971 | $4,248 | $2,723 |
| 4 | Kansas | $5,137 | $2,350 | $499 | $1,294 | $5,636 | $3,644 | $1,992 |
| 5 | Wyoming | $4,397 | $1,597 | $431 | $1,294 | $4,828 | $2,891 | $1,937 |
| 6 | Montana | $5,356 | $2,545 | $472 | $1,415 | $5,828 | $3,960 | $1,868 |
| 7 | Maryland | $5,146 | $2,468 | $660 | $1,523 | $5,806 | $3,991 | $1,815 |
| 8 | Mississippi | $4,939 | $2,383 | $512 | $1,280 | $5,451 | $3,663 | $1,788 |
| 9 | District of Columbia | $5,220 | $2,565 | $647 | $1,536 | $5,867 | $4,101 | $1,766 |
| 10 | Missouri | $5,292 | $2,683 | $458 | $1,307 | $5,750 | $3,990 | $1,760 |
| 11 | Kentucky | $5,774 | $3,209 | $499 | $1,361 | $6,273 | $4,570 | $1,703 |
| 12 | Colorado | $5,690 | $3,234 | $553 | $1,307 | $6,243 | $4,541 | $1,702 |
Source: ValuePenguin analysis of insurance rate data from Quadrant Information Services, gas price data from AAA, electricity price data from the EIA, fuel economy data from the Department of Energy Office of EERE and average annual miles data from the DOT FHWA. Note: Insurance costs don’t include private insurance offered through Tesla.
Driving costs for Toyota RAV4 significantly higher
While insurance costs are high for a Model Y, that’s not the first thing consumers typically consider when comparing electric and gas vehicles. Rather, gas prices are often top of mind.
When looking at the annual driving average of 13,476 miles per American driver, the fuel economy for both cars and the cost of electricity and gas, we found that it would cost $1,469 a year to drive a Toyota RAV4 and just $606 for a Model Y. That translates to 10.9 cents and 4.5 cents per mile, respectively — meaning a RAV4 costs 142.2% more per mile.
While that gap is good news for electric car owners in general, Sangameshwar says those cost differences may not always be so large. "Electric vehicles are a lot cheaper to run and operate than gas cars," she says. "However, EVs will put a lot of pressure on the U.S. power grid — which is aging and may not be able to keep up with the demand."
Most EVs currently on the market travel 4.4 times further on a given amount of energy than their gas-powered counterparts, according to the U.S. Department of Energy National Renewable Energy Laboratory (NREL). However, electricity demand is expected to increase by 38% from 2022 to 2035, according to the Rapid Energy Policy Evaluation and Analysis Toolkit (REPEAT) from Princeton University — which may increase operational costs for electric vehicles.
Unsurprisingly, driving a Tesla is more affordable in every state, with Washington topping the list at a gap of $1,334. In 2022, Washington was among the six states with the lowest average electricity prices, according to the Energy Information Administration (EIA) — largely due to the state’s Grand Coulee Dam hydroelectric power plant, the seventh-largest in the world.
3 states with the biggest gaps in operational costs between a Tesla Model Y and a Toyota RAV4
Rank | State | Annual driving costs, Model Y | Annual driving costs, RAV4 | Cost gap |
|---|---|---|---|---|
| 1 | Washington | $418 | $1,752 | $1,334 |
| 2 | Oregon | $485 | $1,617 | $1,132 |
| 3 | Nevada | $647 | $1,752 | $1,105 |
Source: ValuePenguin analysis of gas price data from AAA, electricity price data from the EIA, fuel economy data from the Department of Energy Office of EERE and average annual miles data from the DOT FHWA.
Oregon ($1,132) has the next largest gap in operational costs between the two vehicles. Like Washington, Oregon largely relies on renewable energy resources, which likely accounts for lower electric vehicle driving costs here.
Nevada ($1,105) rounds out the top three. While the annual driving costs for a Model Y are higher than the U.S. average in Nevada, the annual driving costs for a Toyota RAV4 are significantly higher. That’s largely due to the state’s heavy reliance on natural gas but minimal gas production, which likely drives up fuel prices in the state.
Full rankings
States with the biggest/smallest gaps in operational costs between a Tesla Model Y and a Toyota RAV4
Rank | State | Annual driving costs, Model Y | Annual driving costs, RAV4 | Cost gap |
|---|---|---|---|---|
| 1 | Washington | $418 | $1,752 | $1,334 |
| 2 | Oregon | $485 | $1,617 | $1,132 |
| 3 | Nevada | $647 | $1,752 | $1,105 |
| 4 | Illinois | $593 | $1,577 | $984 |
| 4 | California | $1,105 | $2,089 | $984 |
| 6 | Arizona | $553 | $1,509 | $956 |
| 7 | Idaho | $431 | $1,375 | $944 |
| 8 | Montana | $472 | $1,415 | $943 |
| 8 | Utah | $418 | $1,361 | $943 |
| 10 | North Dakota | $404 | $1,334 | $930 |
| 10 | West Virginia | $539 | $1,469 | $930 |
| 12 | Virginia | $526 | $1,455 | $929 |
Source: ValuePenguin analysis of gas price data from AAA, electricity price data from the EIA, fuel economy data from the Department of Energy Office of EERE and average annual miles data from the DOT FHWA.
Connecticut worst state to own Model Y
When looking at a composite of insurance and operational costs by model, Connecticut ranks as the worst state to own a Model Y.
Notably, the annual insurance cost for a Model Y is $5,960, placing it behind Michigan ($7,664) and Louisiana ($6,799) as the state with the third-highest insurance costs.
Meanwhile, operating a Model Y in Connecticut costs $1,011 a year — making it the state with the sixth-highest operational cost for that model.
Worst states to own a Model Y
Rank | State |
|---|---|
| 1 | Connecticut |
| 2 | Michigan |
| 3 | Nevada |
| 4 | Maryland |
| 5 | District of Columbia |
| 6 | California |
| 7 | Colorado |
| 8 | Delaware |
| 9 | Texas |
| 10 | Arizona |
| 11 | Massachusetts |
| 12 | New York |
Source: ValuePenguin analysis of insurance rate data from Quadrant Information Services, gas price data from AAA, electricity price data from the EIA, fuel economy data from the Department of Energy Office of EERE and average annual miles data from the DOT FHWA. Note: We took the individual rankings for insurance and operational costs and averaged them to create a composite ranking.
On the other hand, the best states to own a Tesla Model Y are Washington, Idaho and South Dakota. By operational costs, Washington and Utah are tied for the second-lowest at $418 annually.
When it comes to insurance, Hawaii has the lowest cost for Model Y drivers, at an average of $2,313. However, it also has the highest operation cost of any state, at $1,644 a year. Residential electricity prices in Hawaii far exceed those in any state.
Oregon worst state to own RAV4
Again looking at a composite ranking of insurance and operational costs by model, Oregon is the worst state to own a RAV4.
More specifically, insuring a Toyota RAV4 costs $3,520 on average — the second-highest insurance cost by state behind Michigan ($3,814). Oregon also has the fifth-highest driving cost annually, at $1,617 on average.
Worst states to own a RAV4
Rank | State |
|---|---|
| 1 | Oregon |
| 2 | Nevada |
| 3 | Florida |
| 4 | Delaware |
| 5 | Pennsylvania |
| 6 | Arizona |
| 7 | Michigan |
| 8 | Connecticut |
| 8 | California |
| 10 | District of Columbia |
| 11 | Illinois |
| 12 | Maryland |
Source: ValuePenguin analysis of insurance rate data from Quadrant Information Services, gas price data from AAA, electricity price data from the EIA, fuel economy data from the Department of Energy Office of EERE and average annual miles data from the DOT FHWA. Note: We took the individual rankings for insurance and operational costs and averaged them to create a composite ranking.
Meanwhile, Wyoming is the best state to own a Toyota RAV4. More specifically, Wyoming has the fourth-lowest cost of driving annually and the fifth-lowest annual insurance premiums. Kansas, Mississippi and New Hampshire are equally the next best states to own a RAV4.
Choosing between electric/gas for your next vehicle: Expert tips
While Tesla began the electric car boom, your options aren’t limited to the Model Y — and your next gas car doesn’t necessarily have to be a RAV4. Still, our analysis shows there are a lot of things to consider when determining whether your next car should be electric or gas — particularly when it comes to insurance.
For those considering making the switch, Sangameshwar offers the following advice:
- Do the math. "Most people focus on the savings you’ll get from ditching gas and the potential tax credits, but people often forget to consider insurance costs," she says. "Considering that electric vehicles are already significantly more expensive to purchase than gas-powered cars, those high insurance costs can add unexpected financial strain to a budget already stretched by an electric car purchase."
- If you’ve already decided to get an EV or already have one, you’ll need to shop around for a better insurance rate. The insurer that gave you a cheap deal on your gas car may charge you significantly more for your EV, so shopping around can be crucial to saving some cash. You should also have a larger nest egg set aside for emergency car repairs since electric vehicles can cost more to repair than gas cars.
- Understand that the cost difference between a gas and electric car varies by make and model. "On the surface, car insurance for an electric vehicle costs 20% more than for a gas-powered car," Sangameshwar says. "However, electric vehicles sold by a company that also makes gas-powered cars cost an average of $282 a month to insure — the same price per month as the average price among the top 10 gas cars nationwide." Additionally, ValuePenguin research on electric car insurance costs shows that some EVs are cheaper to insure than their corresponding gas cars.
Methodology
We conducted a cost analysis of two crossover SUV models — the Tesla Model Y Long Range and the Toyota RAV4 XLE — considering the cost of insurance and operation. We chose the two most popular crossover SUVs — one electric and one gas-powered — from Car and Driver magazine’s 2023 best-selling list.
For this analysis, ValuePenguin researchers collected insurance quotes for a 2023 Tesla Model Y Long Range and a 2023 Toyota RAV4 XLE from various auto insurance companies across all ZIP codes in all 50 states. The quotes were obtained for a 40-year-old man with a clean driving record and good credit.
ValuePenguin’s analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only, as your quotes may be different. Full-coverage policies include coverage limits above minimum requirements.
Full-coverage policy
Coverage | Limits |
|---|---|
| Bodily injury liability | $50,000 per person, $100,000 per accident |
| Property damage | $25,000 per accident |
| Uninsured or underinsured motorist bodily injury | $50,000 per person, $100,000 per accident |
| Comprehensive and collision | $500 deductible |
| Personal injury protection | Minimum (when required by state) |
To calculate the cost of driving, we pulled the cost of gas from AAA on Feb. 20, 2024, and assumed 30 mpg for the Toyota RAV4 using fuel economy data from the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy (EERE). We also used the average residential electricity price from the U.S. Energy Information Administration (EIA) from November 2023 to determine the cost of driving an electric vehicle in each state. We calculated per-mile costs and then multiplied them by 13,476 — the annual average per American driver, via the U.S. Department of Transportation (DOT) Federal Highway Administration (FHWA).
Analysts calculated insurance and operational costs for each model. We presented them individually and as a composite. We also calculated cost gaps based on various data points.