It's partly because batteries are expensive replacing one can cost several thousand dollars. But it's also because the price is what the market will bear. It's not the cost that drives the price up as much as it's the demand.

This is a common question. If you make sure you have your own vehicle covered, do you need to get the special coverage offered at the rental counter if you go on vacation and get a rental car. You will have to double-check your particular policy, but most policies do provide the same coverage for a rental car that you have for your personal vehicle

In general the answer is yes. Electric vehicles need to be recharged and must draw that electricity from somewhere else. If the electricity comes from a coal-burning power plant, the electric vehicle is still part of a pollution cycle even though it doesn't emit greenhouse gases itself. Even so, it's easier to control emissions on a single point of