Gas vs. Electric vs. Hybrid: Find Out Which Is Really the Cheapest to Own

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There’s a lot of debate around which type of vehicle is better for your budget, with compelling arguments for all sides.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Electric vehicles generally need less maintenance, and you don’t have to pay for gas. However, gas-powered vehicles generally have lower purchase prices and are cheaper to insure. In between those two options is a hybrid, which combines the best of both worlds.We can’t compare every type of vehicle here, so let’s focus on medium-sized sedans and how each one stacks up. Here’s which one is the cheapest to own.Hybrids are generally the cheapest to ownAverage annual cost of ownership: $9,476A medium-sized hybrid sedan has an annual cost of ownership of just $9,476, according to data from AAA, which works out to be a cost-per-mile of just $0.63. Even if you opt for a hybrid SUV, you’ll likely save money over a pure EV or gas-only vehicle.AAA includes everything from car insurance to maintenance and repair costs to registration fees to determine the annual cost of ownership. The average for all these vehicle costs each year is $12,297, making hybrid sedans more than $2,800 cheaper annually than the average vehicle.The one exception is electric trucks. EV trucks are generally cheaper because of the gas savings and lower maintenance.Car-buying tip: While most hybrids are cheaper to own, their insurance premiums are often more expensive. Click here to shop for cheap car insurance to help control your costs.Gas-powered vehicles are the next cheapestAverage annual cost of ownership: $10,557Gas-powered vehicles are still a great choice if you’re trying to keep costs low. A mid-sized, gas-powered sedan will cost just over $1,000 more annually than the average cost of ownership of a hybrid.However, you’ll likely save money upfront because gas-powered sedans are usually cheaper to purchase than their hybrid-powered counterparts. For example, the base 2025 Honda Accord LX starts at $28,295, while the cheapest hybrid version is the Accord Sport Hybrid, which starts at $33,665.You’ll also appreciate that insurance costs are generally cheaper for gas-powered vehicles than for hybrids or EVs. Car insurance costs jumped 26% this year, making it more important than ever to compare quotes from the best car insurance companies.Electric vehicles can be the most expensive to ownAverage annual cost of ownership: $12,527Generally, electric vehicles are the most expensive to own; their annual cost of $12,527 is about 2% higher than the average.This means if you’re deciding between a mid-sized hybrid sedan and a similar EV sedan, you’ll save about $3,000 annually on your cost of ownership with a hybrid compared to an EV.EVs often come with higher price tags, and their insurance costs and repairs are often pricier as well. Progressive Insurance says EVs are more expensive to own because fewer mechanics are trained to fix them and they have advanced technology, like large batteries, that can be expensive to replace after a major accident.While hybrids generally have the lowest annual cost of ownership, it’s worth noting that some brands and models are more reliable than others, which means that your mileage may vary (pun intended!) depending on which vehicle you choose.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Progressive. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

There’s a lot of debate around which type of vehicle is better for your budget, with compelling arguments for all sides.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Electric vehicles generally need less maintenance, and you don’t have to pay for gas. However, gas-powered vehicles generally have lower purchase prices and are cheaper to insure. In between those two options is a hybrid, which combines the best of both worlds.

We can’t compare every type of vehicle here, so let’s focus on medium-sized sedans and how each one stacks up. Here’s which one is the cheapest to own.

Hybrids are generally the cheapest to own

Average annual cost of ownership: $9,476

A medium-sized hybrid sedan has an annual cost of ownership of just $9,476, according to data from AAA, which works out to be a cost-per-mile of just $0.63. Even if you opt for a hybrid SUV, you’ll likely save money over a pure EV or gas-only vehicle.

AAA includes everything from car insurance to maintenance and repair costs to registration fees to determine the annual cost of ownership. The average for all these vehicle costs each year is $12,297, making hybrid sedans more than $2,800 cheaper annually than the average vehicle.

The one exception is electric trucks. EV trucks are generally cheaper because of the gas savings and lower maintenance.

Car-buying tip: While most hybrids are cheaper to own, their insurance premiums are often more expensive. Click here to shop for cheap car insurance to help control your costs.

Gas-powered vehicles are the next cheapest

Average annual cost of ownership: $10,557

Gas-powered vehicles are still a great choice if you’re trying to keep costs low. A mid-sized, gas-powered sedan will cost just over $1,000 more annually than the average cost of ownership of a hybrid.

However, you’ll likely save money upfront because gas-powered sedans are usually cheaper to purchase than their hybrid-powered counterparts. For example, the base 2025 Honda Accord LX starts at $28,295, while the cheapest hybrid version is the Accord Sport Hybrid, which starts at $33,665.

You’ll also appreciate that insurance costs are generally cheaper for gas-powered vehicles than for hybrids or EVs. Car insurance costs jumped 26% this year, making it more important than ever to compare quotes from the best car insurance companies.

Electric vehicles can be the most expensive to own

Average annual cost of ownership: $12,527

Generally, electric vehicles are the most expensive to own; their annual cost of $12,527 is about 2% higher than the average.

This means if you’re deciding between a mid-sized hybrid sedan and a similar EV sedan, you’ll save about $3,000 annually on your cost of ownership with a hybrid compared to an EV.

EVs often come with higher price tags, and their insurance costs and repairs are often pricier as well. Progressive Insurance says EVs are more expensive to own because fewer mechanics are trained to fix them and they have advanced technology, like large batteries, that can be expensive to replace after a major accident.

While hybrids generally have the lowest annual cost of ownership, it’s worth noting that some brands and models are more reliable than others, which means that your mileage may vary (pun intended!) depending on which vehicle you choose.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Progressive. The Motley Fool has a disclosure policy.

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