All You Need To Know About Electric Car Insurance

Getting Past the Challenges To Insure Your EV

This article may contain affiliate links

There are many benefits to owning an electric car, but anything that is good will have its downfalls. Getting insurance coverage on your EV may not be as easy as you think. It will not be cheaper than what you have been used to paying for on a comparable internal combustion engine (ICE) vehicle.

Plus, many insurance carriers have not embraced the idea. Luckily, some larger companies understand that EVs are the future of automotive insurance, so they have some excellent information and coverage available for all EVs.

The good thing is that with an EV, you save on the basic annual ownership costs, especially if you keep up with the suggested maintenance. You also get some tax breaks in most areas at the end of the year because the government is backing the shift from fossil fuel cars to electric relatives.

Looking at Why EV Insurance Is More Expensive

If your vehicle breaks down or you are in an accident requiring a claim to be filed, you will understand why the costs for insuring an EV are higher. Let’s take a quick look to know why the premium prices are more expensive.

• Parts – Many of the replacement parts for an EV cost a substantial amount more than some of the parts for older ICE models, especially if you are talking about replacing any of the technological parts and pieces in the car. This is to be expected, though, because every newer model will cost more simply because it is new. The longer it is on the market, the lower the cost of the parts. This, in turn, will help decrease the cost of your insurance policy.
• Batteries – One of the most expensive parts of an EV is the battery. One battery can cost up to $1,000 or more, and some sites state that they can cost as much as $10,000 (batteries vary greatly in size and complexity in electric cars. That is a decent chunk of change for most of us, which is one of the biggest reasons your EV car insurance will cost more than you expected.
• Repair Shops – One of the other things that you will need to understand about your EV insurance policy is the cost of having the repairs done. Not everyone can work on EVs, so not every garage will be willing to work on them. If they do, they may not be trained enough to complete the task correctly. The best insurance companies know this, and most will demand that the repairs be completed by a person certified to work on them. This may cost much more in labor, and the cost of any parts and pieces that may be needed will be more.

What You Can Do About the Cost

The cost of insuring an electric EV will be more—for now, anyway. Once the technology and training catch up with the demand for EV services, the costs will come down. For now, you can do a few things to ensure you get the best deal on your electric car insurance.

• Shop Around – The most important thing you can do is shop around. Never accept your first offer as being the best, and never feel like you are obligated to stick with your current carrier.
• Discounts – Some insurance companies will offer you discounts, especially if you are a new customer. The best thing to do is simply ask. If you carry more than one type of insurance, such as life or health, bundle them into one umbrella policy. This will save you money on all of them, not just your car insurance.
• Safe Driving – Many insurance carriers offer discounts for a safe driver. You have to prove it with a device they send you or an application that can be downloaded on your mobile device. In this way, they track how you drive and offer their policies accordingly. (HINT: If you like to drive your car like you own it, this may not be beneficial.)

That is about all you need to know about electric car insurance. It is no different than getting a policy for an internal combustion engine car, except for the cost. If you have moved into the future and gone all in with the EV trends across the globe, you will simply have to understand that you will have to pay more on your car insurance until the services catch up with the technology.