Everything you need to know about insuring an electric vehicle

Electric vehicles are not like their conventional sibling. They do not rely on combustible engine power. Instead, an electric vehicle’s hood is covered by an enormous battery pack.

Electric cars are popular among car enthusiasts for many reasons. They are environmentally friendly and some people choose them to save money on gasoline. Is an electric car right choice for you? No matter what your reasons for considering an electric car, it is important to learn how to insure one.

Car insurance vs. electric car insurance

Robert Anderson invented the first electric car in 1832, but only in recent decades have electric cars become major contenders in the automobile industry. Electric cars were limited in their ability to travel 100 miles on one charge. Most consumers couldn’t afford these high prices. But today, many electric vehicles cost less than $40,000 and some have a range of more than 370 miles on a single charge. A home charging station can be set up for as little as $200 to $1,000 and you can also charge up at any of the many pay stations located across the country.

Electric cars typically have higher insurance rates that their conventional counterparts.
Electric vehicles are more expensive than traditional cars and can sustain more damage. An electric vehicle is more expensive than a conventional car and the insurance company must cover it. And, if a fender bender damages an electric car’s battery pack, the insurance carrier may have to pay $15,000 or more to replace it.

What is the cost of electric car insurance?

We were surprised by the reasonable rates we received for electric cars, despite the fact that they are more expensive to insure than gas-guzzling vehicles.

These rates are not the best. The amount you pay for your electric vehicle’s insurance will depend on a variety of factors, including:

  • Your annual mileage
  • Parking your vehicle on the street or in a garage is a better option.
  • Your driving record
  • Your age (drivers under 25 pay more)
  • Safety features in your vehicle
  • Credit score in some states
  • You can choose to include optional coverages (e.g. collision or comprehensive).

It is the same as insuring a regular vehicle. While the car certainly plays a role in your insurance costs, the auto insurance company looks at a bigger picture, which includes you as a driver and your likelihood of getting into an accident. Safer, low-mileage drivers will generally pay much less than people with a driving history that includes accidents and/or traffic tickets.

Who offers electric car insurance?

Covering an electric vehicle is the same as covering a traditional car. Electric car policies feature the same coverage options such as liability, collision and comprehensive coverages. Most major insurers write policies for electric vehicles, including:

Although many insurance companies have begun to offer guides on electric vehicles (see Allstate Geico Farmers and State Farm), it may be difficult to find discounts for an electrical vehicle. Although you can save money and get tax incentives by not driving to the gas station, there aren’t many insurance companies that offer discounts for electric vehicles.

We did find a couple that are. Travelers and Liberty Mutual are two of the largest carriers that offer exclusive discounts for owners of hybrid and electric cars.

Tesla Insurance

In August 2019, electric vehicle manufacturer Tesla launched Tesla Insurance. Currently, Tesla Insurance only writes car insurance policies in California for all Model 3, Model S, Model X, Model Y and Roadster Tesla owners but has plans to offer coverage throughout the United States. Tesla Marketing claims that the manufacturer created the insurance program due to its intimate knowledge of the technology and serviceability of Tesla vehicles.

Tesla Insurance provides the same coverage as other providers. It includes collision, comprehensive, and bodily injury liability. Tesla offers an Autonomous Vehicle Protection package that covers autonomous vehicle owners liability, cyber identity fraud expenses and electronic key replacement. Although some insurance providers do not cover autonomous vehicles, the Stevens Institute of Technology report suggests the coverage could create an $81 billion opportunity for the insurance industry by 2025.

Tesla policy holders in California can get an online quote or purchase a policy through the Tesla website. When their vehicle’s VIN is available in their Tesla account, new Tesla owners can request a quote.

Tesla Insurance, like most car insurance companies offers multi-policy discounts. Although Tesla Insurance claims it offers rates that are 20%-30% lower than competitors, every driver will pay a different rate. Tesla Insurance may offer lower rates to some owners, while others might pay more depending upon multiple factors, such as where they live, their driving history, and age.

Tesla offers discount programs. You can save money by using the autopilot feature. To determine if you qualify for safe-driving discounts, the company will also collect data from your vehicle.

How to Save on Electric Car Insurance

You can save money on insurance if you buy an electric car. If you already have an electric car and are curious about finding more affordable rates, consider requesting quotes from several providers. You might get a better deal by switching to another company.

Discount programs are also available. Insurance companies offer discounts for multiple policies, including insuring more vehicles, remaining claim-free, and taking defensive driving courses.

You should also research federal, state, and local programs that offer tax credits or rebates. For instance, the California Clean Vehicle Rebate Project pays rebates up to $4,500 to Californians who purchase an eligible electric battery vehicle. The federal government offers tax credits up to $7,500 for purchasing certain makes and models of electric cars and SUVs.

What are the advantages of driving an electric vehicle?

There are many benefits to owning an electric car. These are just a few.

  • Energy independenceYou don’t have to rely on a charging station for your vehicle’s battery to be charged, but you can do without gas stations. A home charging station allows you to plug your car in when you return from work, and it will be ready for use the next day.
  • Lower environmental impact:Electric cars produce zero tailpipe emissions. Although driving an electric vehicle will not reduce your carbon footprint, it will make it significantly less. Hybrid electric vehicle models, which can run on gasoline or battery power, are an attractive option for people who don’t want to commit fully to electric cars.
  • Reduce inhaled emissionsTailpipe emissions pollute the environment and the interior of your car to varying degrees depending on the type of car and climate control system. Car emissionsMany of these carcinogens can be deadlyThese include volatile carbon dioxides and organic compounds, as well as particulate matter. These emissions can be avoided by an electric car.
  • Reduce fuel expenses:Fueling your car with diesel or gasoline is common.More expensiveRather than the electricity costs of running an electric car.
  • Battery life extendedThere are many reports on electric car batteries. Based on the predictive modeling done by theNational Renewable Energy LaboratoryNew technology has allowed some batteries to last up to 12 to 15% longer. To extend the battery’s life, more research is ongoing.
  • Lower maintenance costsYou don’t have to worry about oil changes or changing any other parts, such as radiator hoses and gaskets. Electric car owners report driving their cars up to 70,000 miles.Original brake pads.

Bottom line

Electric cars will not be going away. Electric cars are a more environmentally friendly way to travel from one place to another. They also have quieter engines, which emit fewer harmful exhaust fumes. Electric cars are more reliable and require less maintenance. They can also go a lot of miles with original parts.

An electric car may cost you a bit more than a regular car, and you might have to pay higher insurance rates. You might be surprised. You might be surprised to find rates that are comparable to those of other automobile models and makes if you shop around. Ask agents about discounts, which may include electric vehicle discounts, to get the best premium.

Questions frequently asked

Are electric vehicles more expensive to insure?

Yes, generally speaking. These vehicles are more expensive to buy and to repair so insurance companies charge drivers more for coverage. However, you might be able to save more on gas or tax incentives than the extra cost of your policy.

Are there any discounts offered by insurance companies for electric vehicles?

Although many insurance companies do not offer discounts for eco-friendly vehicles, Liberty Mutual and Travelers both offer discounts to drivers who drive hybrids or electric cars.

Is it easier to insure an electric car?

No. No. Most insurance companies provide coverage for electric cars. If you make the switch, chances are that your existing insurance company would cover an electric vehicle policy.