AAA: Hybrids Win Ownership Cost Comparison Over EVs

Electric vehicles can save drivers considerable money on fuel, but that does not automatically make them the least expensive vehicles to own. According to AAA’s 2026 new-vehicle ownership study, higher depreciation and financing costs continued to outweigh those savings, leaving EVs more expensive overall than comparable gasoline and hybrid models. However, rising gasoline prices narrowed the difference considerably, bringing electric vehicles close to their competitors in three of the four vehicle categories AAA examined.

Hybrids finished with the lowest total ownership costs in all four categories: compact SUVs and crossovers, medium SUVs and crossovers, full-size pickups and medium sedans. AAA found that their combination of fuel efficiency, relatively low maintenance expenses and stronger resale performance compared with EVs gave them the advantage, although the overall differences were often small.

For shoppers, the study is a reminder that the cost of a vehicle extends well beyond its monthly payment or what it takes to fill the tank. AAA estimated ownership expenses over five years and 75,000 miles, including depreciation, fuel, maintenance, insurance, financing, license fees, registration and taxes. Its powertrain comparisons used actual transaction prices for top-selling gasoline, hybrid and electric models within each category.

The compact SUV comparison illustrates how the numbers come together. AAA calculated average annual ownership and operating costs of $11,888 for electric models, $11,656 for gasoline models and $11,201 for hybrids. That worked out to approximately 79 cents per mile for EVs, 78 cents for gasoline vehicles and 75 cents for hybrids.

The annual difference between an electric compact SUV and a gasoline model was just $232. Hybrids held a larger advantage, costing $687 less annually than EVs and $455 less than gasoline models. Those are meaningful savings, but they also show how close the competitors have become when all ownership expenses are included.

Depreciation remained the biggest obstacle for electric vehicles. In the compact SUV category, AAA estimated that EVs lost an average of $5,298 in value annually, compared with $3,568 for gasoline models and $3,845 for hybrids. Although depreciation does not arrive as a monthly bill, it affects how much money an owner recovers when selling or trading the vehicle.

EVs made up substantial ground on fuel. Annual energy costs for electric compact SUVs averaged $771, compared with $2,382 for gasoline models and $1,731 for hybrids. Across the study, AAA reported that new EVs offered roughly 70 percent savings in fueling costs compared with gasoline vehicles. The challenge was that those savings were offset by expenses elsewhere.

Gasoline prices played a major role in narrowing the ownership gap this year. AAA used regular gasoline priced at $4.15 per gallon, a 32 percent increase from its 2025 study. Electricity averaged 18 cents per kilowatt-hour, up 7.8 percent. With gasoline rising much faster than electricity, EVs became more competitive in the compact SUV, medium SUV and full-size pickup categories. Electric medium sedans remained at a greater disadvantage, largely because of depreciation.

Maintenance also favored electrified vehicles, although EVs did not always finish first. In the compact SUV category, annual maintenance expenses averaged $1,402 for electric models, $1,506 for hybrids and $1,954 for gasoline vehicles. That gave EVs a substantial advantage over gasoline models, but only a modest edge over hybrids. Among full-size pickups, electric models actually had higher annual maintenance costs than hybrids: $1,618 versus $1,539.

Insurance expenses were relatively close among the three powertrains. Electric compact SUVs averaged $2,277 annually, slightly more than gasoline models but slightly less than hybrids. According to AAA’s data, that represented an improvement from 2025, when EV insurance in that category cost approximately $300 more annually than gasoline coverage and $250 more than hybrid coverage.

Looking beyond the powertrain comparisons, AAA calculated average annual ownership and operating expenses of $12,863 across seven vehicle segments and 34 top-selling models. The weighted average sticker price was $39,376, underscoring how much the purchase price is only the beginning of the financial commitment.

There are limits to applying these averages to an individual purchase. The study did not examine leasing, so its findings should not be treated as a comparison of available lease deals. AAA also emphasized that actual ownership costs depend on the driver’s mileage, driving conditions and other circumstances.

Austin Shivers, an automotive technical engineer at AAA, said the differences were close enough that any of the three powertrains could deliver the lowest cost per mile for a particular driver. Hybrids won AAA’s overall comparison, but an EV’s lower energy costs or a gasoline vehicle’s lower depreciation could produce a different result for an individual buyer.

The practical lesson is to compare the entire ownership picture before signing. Fuel savings matter, but so do financing, insurance, maintenance and eventual resale value. According to AAA’s findings, hybrids currently offer the strongest overall combination across the categories studied, while electric vehicles are getting closer. The cheapest vehicle to fuel is not necessarily the cheapest vehicle to own.