Car Insurance For Electric Cars, Is There A Difference?

In the past year, gasoline prices in the United States have risen from just over $3 per gallon to nearly $5 per gallon. It would be a stretch to think that these prices could go even hire in the future. Not surprisingly, this has led to even more people considering electric cars and whether it is time for them to make the switch

Many people love the idea of plugging in their car while they are at home and driving it the next day without worrying about whether their gas tank is creeping towards the “E”, but is it that simple? What about electric car insurance? Are electric cars more expensive to insure?

Read on as we discuss everything you need to know about electric cars and insuring them!

How Does Electric Car Insurance Differ From Traditional Car Insurance?

In a nutshell, electric vehicle (EV) insurance and traditional car insurance are no different! Your insurance agent may take other factors into consideration when they give you a quote for EV insurance, but at their core, the policies are the same. Great news, right?

Is Car Insurance Higher for Electric Cars?

You are probably thinking, “A car is a car. Why are electric cars more expensive to insure?” That’s a perfectly reasonable question that has a simple answer. The model of your car doesn’t make you more or less of a liability, but the costs that could be incurred to repair it do, at least to your insurer.

Because electric cars use newer technologies with parts that tend to be more difficult to get, they are typically more costly to work on or repair. For that reason alone, you can expect your insurance rates to be higher than what you pay for the insurance on your current gasoline-powered vehicle.

While you can expect to pay at least 10% more for the insurance on your electric car, you can still find fair and reasonable rates by shopping around, looking atdifferent companies to be sure you’re getting the best price.

The costs associated with your new insurance policy will be calculated depending on the make and model you intend to purchase, the company you insure your vehicle through, and your driving record. The best thing you can do is get multiple policy quotes and take advantage of any savings plans or bundles your agent offers.

Why Is Insurance More Expensive for Electric Cars?

As noted previously, electric vehicles cost more than their gasoline-powered counterparts to work on. If a mechanic needs to repair your vehicle or replace parts, they will need to understand the technology and have experience working with it.

Electric-powered vehicles also use very specialized parts that can be more challenging to get, and thus more expensive overall. Insurance companies will of course take all of this into account when they are quoting you a price on a new policy for an electric vehicle. Make sure you choose the best policy that will cover your vehicle for anything that may arise – even electrical problems.

When you are ready to get serious about purchasing an EV and want to gather quotes for insurance for electric cars, there are a few things you can do to get the best prices. Shop around, take advantage of bundles, apply for EV tax credits, and consider any cost reduction programs available like safe-driver technology, veterans rates, and student rates.

What Are the Advantages to Driving an Electric Car?

While it may be frustrating that electric cars are technically more expensive to insure, we want to talk about all of the advantages that driving EVs offer.Read on as we discuss a few of our favorite reasons below:

No More Pain at the Pump

In this current economy, heading to the gas station to fill up has become an unpleasant experience. If you’re the owner of an electric vehicle, you can cruise right past the gas station, go home to plug in your car, and have a full charge the next morning when you’re ready to go to work.

Become a Steward of the Environment

It’s no secret that fossil fuels have a significant impact on the environment. So many gasoline-powered vehicles on the roads every day are a major contributor to the problem. While it may seem like you can’t do anything to help, your reduced carbon footprint as an EV driver will make a difference.

Cut the Emissions

The fumes that come out of a car’s tailpipe are toxic. Depending on the type of gas-powered vehicle you drive, these emissions release dangerous chemicals and carcinogens into the air and into the interior of your car. An electric car will eliminate that issue completely.

No More Fuel Expenses

The current cost to fill up a mid-sized gasoline-powered vehicle with a 20 gallon tank is approaching $100. As an electric vehicle driver, gas stations will be a thing of the past.

Battery Power

With each passing year, the technology that is responsible for electric cars continues to grow and advance. Currently, electric vehicle batteries have the capacity to last up to 15 years, which is far longer than most people typically keep their vehicles. The gasoline savings over that amount of time are huge!

Easier Maintenance

Did you know that not only do electric vehicles not use or rely on gasoline, but they are also free from hoses that leak, gaskets that blow, and belts that snap? Talk about one less headache to worry about. Electric vehicles have a much cleaner operating system that requires less overall maintenance throughout its lifetime.

Last Words

There are no signs that the economy will be calming down anytime soon. In fact, we are at historically high inflation levels that many Americans have never seen during their lifetimes. That means that paychecks are not going as far and every dollar counts.

An electric car may seem as if there are more upfront costs, but over the lifetime of the vehicle you will save on gasoline, wear and tear, and repair costs. Take your time looking around at various dealers, researching the incentives that you may be eligible for as an EV owner, and gather competitive insurance quote before making a committment.

Want More Insurance Tips & Industry Knowledge?

The best way to ride with LOOP on your insurance journey is to subscribe to our newsletter. We’ll see you in your inbox!