The technology behind electric cars is still new, causing people to pay more on purchase than a gas-only car. It may also cause electric car owners to pay more on insurance because of their high value and higher repair costs. This makes affording car insurance difficult for electric car owners.
As electric cars grow more for environmental benefits and innovative technology, new electric car owners are surprised by the high cost of car insurance policies for electric cars. Most drivers assume that because of the safety features and lower environmental impact, electric cars would be cheaper to insure, but it doesn’t work that way.
There are several reasons why car insurance for electric cars is expensive. Understanding the reasons for high premiums and rates as well as how to reduce them can help you get through with car insurance for your electric car. This write-up contains insights into reasons why car insurance for electric cars is expensive.
Is Car Insurance for Electric Cars Expensive?
Car insurance for electric cars can be more expensive than gas-only car insurance. This inconsistency arises from different factors, which include the higher cost of electric cars, the specialized maintenance, and the cost of parts. As technology grows and becomes more conventional, insurance costs may be reduced.
Why is Car Insurance for Electric Cars Expensive?
There are several reasons why car insurance for electric cars is expensive. Being knowledgeable about these reasons is important for electric car buyers. The following are factors considered to increase insurance premiums:
• High cost of electric cars
Generally, electric cars are more expensive in the car market than gas-only cars due to their advanced technology and high cost of batteries. Because of this, the insured declared value (IDV) increases. This is a direct factor considered when premiums are being determined.
• High cost of electric car parts
Electric cars’ lithium-ion batteries play a big role and play an outstanding part in the cost of the vehicle. Replacing or repairing these batteries along with other specialized parts of an electric car can be very expensive, and it affects the price of insurance premiums.
• Battery replacements for electric cars
Electric car batteries have a limited lifespan, which may require replacements over the life of the car. The high price of batteries adds to the overall cost of car insurance premiums. This is because it reflects the chances of filing a claim soon.
• Lesser electric car mechanics
The advanced technology of electric cars requires a specialized mechanic for maintenance and repairs. The high scarcity of these professionals can increase the cost of labor, causing your insurance premium to rise.
How Much Does Electric Car Insurance Cost?
The national average cost for car insurance is $2,314 for full coverage and $644 for average. Depending on your car insurance company, your coverage type, car model, and other factors, the cost of your insurance will be determined. However, you need to check with your car insurance company for how much car insurance costs for electric cars.
FAQs
What information should an electric car owner share with the insurer?
When drivers want to purchase car insurance for their electric cars, they need to provide some details like location, car model, year of production, and usage. This information helps insurance companies evaluate risks and determine the right premium for the driver.
Do I need to insure an electric car?
Yes, it is important to insure your electric car with at least a third-party liability policy. Getting insurance for your electric car can shield you and your car from unexpected financial difficulties.
How to Find the Right Car Insurer for Electric Cars?
To find the best car insurance company for your electric car, you need to shop and compare different insurance companies’ rates and quotes. Also, you need to check their coverage options, customer service, premiums, and experience with other electric cars.
What is the cheapest electric car to insure?
So far, the Toyota Prius is one of the cheapest electric cars to purchase car insurance for. It carries an average insurance premium of $2,352 a year. This is just the same as the national average cost of full coverage car insurance, which is $2,314 a year.
The minimum coverage average cost for Toyota Prius is $637 a year, which is less than the national average cost of $644. However, do not forget that factors like car age and mileage may also affect insurance rates. Comparing insurance quotes or seeking help from insurance agents can be helpful when searching for cheaper electric car insurance coverage.
