Is EV insurance really more expensive?

If you’re considering buying an electric car for your next car purchase, you’re probably already enjoying the idea of ​​flying past a gas station to charge for free at home.

While electric vehicles are undoubtedly cheaper to “refuel,” so to speak, they are also more expensive to insure. Insurance companies aren’t entirely sure what to do with electric vehicles, and they’ve come up with some pretty compelling reasons why they need to charge higher premiums in order for you to be insured.

Is electric vehicle insurance more expensive?

Electric vehicle insurance is, quite simply, your regular car insurance, but only for your electric vehicle. Key difference between electric and regular car insurance price… Electric cars everywhere more expensive to insure.

You might assume that EVs will need some kind of special insurance like ATVs or RVs, but no; insurance companies generally treat them like gas vehicles. This means you will be able to purchase collision coverage, full coverage, and all the other goodies that you are familiar with.

More details: How much does driving safely cost? Types of auto insurance you need

Why Is an electric car more expensive to insure?

While your personal auto insurance premiums are highly dependent on factors such as where you park, how you drive, etc., one of the largest of them: hourHow expensive will it be to repair your car?

Electric vehicles are much more expensive to repair than gas vehicles for a number of reasons, including:

• They are filled with more sensitive electronics which can be easily damaged in the fender. My neighbor’s daughter once crashed into a Tesla Model S at a traffic light at less than 15 miles per hour. There was not a single scratch on her jeep, and Tesla suffered $ 12,000 in damage. Apparently, several sensors were displaced from the impact in the car. Ouch.
• They usually require more specialized parts and labor. We have to work because they look more like giant laptops than traditional cars. You can’t take them to the corner store where Ed drops a new $ 150 radiator. They almost always have to go back to the dealership, which has a monopoly on parts and labor.

Are electric cars more expensive to insure than hybrids?

Yeah, and for almost the same reasons. Electric vehicles are more expensive to buy, made from more expensive parts, and more expensive to operate than hybrids.

More details: Hybrid Driving Cost

What coverage do EV drivers need?

If you buy an electric car instead of a petrol or a hybrid, will that change how much collision, comprehensive, and other insurance you need?

In the world, Yes…

Here’s a quick rundown of which types of insurance you will need more or the same when insuring an electric car:

• Liability for property damage / Liability for personal injury – as much coverage as possible. Liability does not protect you or your machine – it protects your capital. If you have $ 25,000 in liability and cause $ 60,000 in damage, another driver can sue you for the remaining $ 35,000. What’s more, they are more likely to sue you if they think you are rich and have money to pay. This is why drivers of “wealthy” electric vehicles like Teslas and Porsche may want to increase their responsibility.
  
• The bump is definitely more coverage. Collision coverage your repair bills after you cause an accident. Since even minor wing bends can cause over $ 10,000 in damage to electric vehicles, I strongly I recommend getting collision insurance for at least $ 10,000.
• Comprehensive – as much coverage as possible. This covers non-accident damage to your vehicle, such as damage from fire, hail, vandalism, theft, and generally trouble with your vehicle. Even if your EV is more susceptible to damage than a gasoline one (and more expensive to repair), you can still miss out on full coverage if you park your car in a safe place.
• Towing and working – the coverage is the same. Towing and manpower helps cover the costs of towing and roadside assistance. You will need insurance to tow your electric vehicle in case your battery runs out or breaks down.
• Personal injury / property damage to uninsured motorists – the same coverage. As the name suggests, UMBI and UMPD will cover your expenses if the driver who hit you does not have sufficient insurance to cover your damage. Considering the high costs of repairing an electric vehicle and the fact that every eighth driver on the road is not insured, according to Insurance Information Institute, it would be prudent to protect your electric car with the protection of uninsured motorists.
• Injury Protection (PIP) – Same coverage. I recommend that you purchase at least enough PIP coverage to cover your health insurance deduction plus one month of lost wages. I can’t think of what you need increase your PIP coverage in an electric vehicle.
• Gap insurance is the same coverage. If you’ve rented an electric car, chances are the dealer included breakdown insurance in the price. Call them to confirm. if you are financed your car, take a moment to compare how much you still owe on the car with her True market value… If the TMV is much lower, you will need break insurance.
• Rent reimbursement is the same coverage. Reimbursement insurance for a rental car is self-explanatory and the same principles apply as for insuring a gasoline car. Will the dealer give a loan while your EV is in the store? If not, can you do without an electric car for a while? If you answered no to both questions, treat yourself to a rent refund.
• Usage-based insurance is the same coverage. There is no reason why owning an electric car should push you towards UBI – not yet you bought it with the specific intention of driving less.

Is an electric car still cheaper to own overall?

If you were primarily considering buying an electric vehicle to save on the cost of ownership, you might be upset to read that they are in fact more expensive to insure.

But will an electric car save you money? general?

In fact, I did a full review of the topic, comparing the cost of owning and operating an EV, a hybrid, and a gasoline car. CliffsNotes version, TL; The DR is that EVs are more expensive to buy in advance, and in 10 years they will likely need a $ 10,000 or more battery replacement service.

So EVs are 0 miles expensive, 100,000 miles expensive, and all those intermediate miles cheap.… So it can be a nice touch to buy a neatly used electric car and flip it over before it’s 10 years old!

How can you save money on electric vehicle insurance?

If you are not too excited pay much more than your current insurance rate on your new electric vehicle, here are some simple ways to lower your rates:

Buy an electric car that’s cheap to insure

As with conventional cars, some EVs are cheaper to insure than others. Unfortunately, Tesla is the best model because it’s a hell of a lot expensive to fix. But Chevy Bolts, Kia Niros and Nissan Leafs are much cheaper.

Call your provider and look for discounts together

I know it sounds a little ridiculous to call your ISP and ask, “How can I pay you less?” But I swear it works.

All you have to do is contact the live agent by phone and ask him if you qualify for a better rate. They will first update your driver information and then move on to a list of possible discounts that you might not take advantage of, especially those related to electric vehicles.

I personally do this every six months with my ISP, and about half the time I end a 15 minute call at a better rate.

Connect to telematics programs

Finally, a great way to cut your EV insurance premiums is to take part in your provider’s telematics program. Telematics is simply an industry language meaning “what you plug into your car to evaluate your driving behavior at a discount.”

Safe and Informed Driving Premium Discounts can be crazy… Your The only challenge will be not to step on the gas pedal at every traffic light in order to feel the thrust of this sweet electric motor.

Summary

Electric vehicles are more expensive to insure than their gas-powered equivalents for many reasons, including their perceived “luxury” status, susceptibility to damage, and high repair costs.

However, as electric vehicles adopt more safety technologies and their adoption becomes more widespread, this gap may narrow.

In the meantime, buying a cleanly used electric car and getting a lot of offers is the best way to save money on electric car insurance.

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