As electric vehicles (EVs) gain popularity, numerous drivers especially car managers intend to change their regular fleet of cars to electric vehicles soon. The main benefit of getting electric cars is to reduce working expenses, especially when there are individuals who have issues with the increase in fuel prices. However, getting car insurance for electric cars is quite expensive than cars generated by gas or diesel.
Additionally, electric cars may be more expensive to either fix or replace if you face an accident due to their higher price and complex equipment. This also means that policyholders who have collision and comprehensive policies would spend for higher rates. However, tax benefits and long-term discounts on fuel and upkeep can compensate for higher insurance rates. This article will explain the reasons why car insurance for electric cars is expensive and other information you need to know about electric vehicles (EVs).
Why Is Car Insurance for Electric Cars Expensive
Electric vehicles are becoming more popular, but their car insurance costs are currently more expensive than those of regular cars. Here are the following reasons why car insurance for electric cars is more expensive than conventional gasoline and diesel vehicles:
High repair expenses
Electric vehicles are generated by certain extremely complex systems and parts. This implies that any repairs would need a significant amount of expertise in addition to some expensive components. Moreover, the more it expenses to fix a vehicle, the more you will spend for coverage.
Labor and components
Fixing an electric car might mandate importing certain car components, which could cause delays. Additionally, the car might have to be moved for mandatory repairs if there are no EV professionals in the region. All of these situations will increase the cost of car insurance with repair expenses.
Battery weight
The additional weight of electric vehicle batteries tends to damage other cars’ vehicles more severely in collisions. For this reason, the expense of repair will go up and likely increase the chance that the car will be written off.
Absence of insurance expertise
In the UK, electric vehicles are considered to be rare. Multiple providers are simply unknowledgeable in providing them with insurance. They might not be knowledgeable in assessing the risks relating to electric vehicles, which makes it tough for them to deliver accurate premium quotes. For this reason, they might impose further charges to account for all circumstances. Or they may renounce offering any coverage at all for electric cars.
How Much Does Electric Car Insurance Cost
The standard cost of car insurance is $644 for minimum coverage and $2,314 for full coverage. In addition, electric cars under full coverage for Toyota Prius are cheaper than the standard cost. However, full coverage for luxury cars like Tesla Model 3s is 49% more expensive than the standard cost.
For electric car owners, there are different makes and models utilizing information from Quadrant Information Services. The average minimum and full coverage expenses for some of the well-known electric vehicles depend on certain personal rating factors. This may involve your location, age, driving history, and credit history, which may cause significant deviations in your rates.
How Can I Save on Electric Car Insurance
Generally, you can acquire the same kinds of savings as you can for gas-powered cars when it comes to electric car insurance. This might involve cost reduction for keeping a good driving record, combining home and auto insurance, or making payment to your policy completely instead of monthly installments.
Keep a good driving record
Similar to drivers who use gas-powered vehicles, electric vehicle owners may get discounts on reducing their insurance costs by driving responsibly. Also, insurance providers might see you as less of a risk, if you prevent accidents and traffic infractions which could lead to minimal rates.
Enhance your credit
Insurance companies usually get an individual’s credit-based insurance score to estimate premiums. Moreover, people with bad credit might pay more for auto insurance than those with good credit. Your premium may eventually reduce if your credit gets better. Also, it’s important to note that some states limit the use of credit-related data in estimating the amount drivers should pay for auto insurance.
Increase your deducible
Car insurance deductibles are the amount you reimburse before your policy begins. You will receive affordable insurance premiums for higher deductibles, but you should only select a higher deductible if you can comfortably pay the additional costs. Furthermore, the amount of deductible on your policy would be selected by the policyholder.
Get discounts
Some insurance companies provide electric vehicle drivers with discounts which is similar to drivers of gas-powered vehicles. These discounts may be based on driving behavior or history, or they may be based on annual mileage. To acquire the most competitive auto insurance rates, it’s advisable to compare quotes from numerous providers and ask about discounts.
Lastly, it’s important to consider bundling your car insurance with renters or home insurance. Bundling your home and auto insurance with a single provider can result in premium savings because many insurers offer bundling discounts.