Auto Insurance for Electric Cars
If you’re considering buying an electric car, or have recently bought one, you’re probably wondering how this decision will affect your auto insurance payments, and whether the decision will be financially beneficial.
The Cost of Insuring an Electric Car
The first thing to be aware of is that insuring an electric car is almost always more expensive than insuring a similar car that runs on gas. In fact, Nerd Wallet found that, on average, car insurance quotes for electric cars were 21% higher than for their gas powered counterparts.
However, there are a lot of other financial benefits to take into consideration, and there’s logic behind these increased rates that will likely make sense to most drivers.
Why Do Electric Cars Cost More to Insure
Higher Value Vehicles
The higher value of most electric cars is one of the main reasons why they cost more to insure. Even a very similar vehicle that runs on gas is likely to have a considerably lower price tag.
Insurance companies therefore must balance their premiums to reflect this, as the insurance company would need to pay out more if it were totaled in an accident or stolen.
Higher Cost of Repairs
Similarly, the higher cost of repairs on electric vehicles also raises the cost of insuring an electric car. Electric cars often need to be taken to specialist shops for repairs and require expensive parts, so each time you require your insurance to pay out, it will likely cost them more than it would to cover a gas vehicle. Hence, another reason why electric cars most often have a higher cost of insurance.
Financial Benefits to Owning an Electric Car
Of course, there are also some great financial benefits to owning an electric car. The vastly reduced cost of running your car will of course be one of the reasons an electric vehicle appeals to you. Saving money on the cost of fuel might mean the increased cost of insurance is of little concern to you.
Many states also offer tax cuts and incentives to encourage drivers to choose electric vehicles.
Other Benefits to Electric Car Ownership
The benefits to choosing an electric car don’t stop there! Electric vehicles are also much better for the environment, as they create less pollution, and are often made using eco-friendly materials.
There are also health benefits to driving an electric vehicle; emissions produced by gas cars can be harmful.