In June 2022 the national average price of gasoline rose to more than $5 per gallon, a record-breaking spike AAA has not seen over the 22 years they have been measuring gas prices. Drivers might be starting to seriously consider electric cars due to the gas pump shock.
Many drivers have already made that leap. According to the Argonne Nuclear Laboratory, a U.S. Department of Energy multidisciplinary scientific and engineering research center, there were 73.608 plugs-in vehicles sold in the U.S. on May 20, 2022. This is a 46% jump compared to May 2020.
Although electric cars are less expensive to insure, you may be wary of switching. As you will see, extra costs can be minor and you can still get a quality policy for a fair cost with the most trusted car insurance providers.
Here are the basics of electric car insurance.
Electric Car Insurance
According to Forbes Advisor analysis of 41 best-selling electric vehicles, the national average premium was $2280 per year. Your electric vehicle insurance costs will differ depending on which model you have and what other cost factors you are addressing.
For example, the Porsche Taycan, which costs $4683, was the most expensive vehicle to insure, while the Toyota RAV4 hybrid is the least expensive ($1,776).
Common automobile insurance costs are:
- Your driving record including traffic violations, at-fault accidents, and other violations.
- Your claim history.
- Driving experience.
- Where you live.
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How much coverage do you need?
Your automobile insurance deductible. Your insurance score is based on credit (except in California Hawaii Massachusetts Massachusetts and Michigan).
Why does electric car insurance cost more?
When insurance companies decide on their rates, they will consider claims made for similar cars and establish their rates. In other words, if your model of the electric car has had frequent and expensive claims in the past, then insurance rates for all owners of that model will likely be higher.
Here are some reasons that electric cars can have higher insurance costs.
- Replaceable parts. Electric parts are often costlier than non-electric alternatives. CCC Intelligent Solutions reported that replacement parts in an EV vehicle are 2.7% more expensive than the parts in a gas-powered car.
- Electric vehicle batteries. It costs between $5,000 and $15,000. GreenCars is a website that offers resources and tools to assist electric car shoppers.
- Repair shops. Facilities will charge more for repairs. This is because of the specialized training that is required to fix electric vehicles.
Which Companies Sell Electric Car Insurance?
Most car insurance companies will insure your electric car. It’s very similar to purchasing car insurance for a petrol-powered car.
Some insurance companies offer discounts to electric vehicle owners. These discounts could be called an “alternative fuel discount” or a “green-car discount,” depending upon the company.
Here are some insurances that offer discounts on the electric car (availability may vary depending upon the state):
How to Save Money on Electric Car Insurance?
Here are some savings you can make on your electric car policy if you buy an EV.
- Shop around. The best method to save money on car insurance is to get quotes from several different insurers.
- Ask your insurer for discounts. Some companies offer green car discounts and other fuel discounts. However, you might be eligible for even greater price cuts through car Insurance discounts. This is for safe drivers and good students. It also allows you to bundle your auto-home insurance.
- Look into a pay-per-mile plan. A pay-per-mile insurance plan might work best for you.
- Reward yourself for safe driving. Use your insurer’s utilization-based insurance program to track safe driving habits such as speed and cornering.
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What is an Electric Car and Why Does It Matter?
According to U.S. Environmental Protection Agency. Electric cars are classified under “green” vehicles, which use alternative fuels other than gasoline and diesel. Alternative fuels can be electricity, hydrogen, or compressed natural gases.
Here are some electric cars examples:
Electric vehicles (EVs).
An EV has a battery and an electric engine instead of a petrol tank. EVs produce fewer tailpipe emissions than gasoline cars and generally emit less total emissions.
Examples of EVs are the Chevy Bolt or Nissan Leaf, as well as the Tesla model 3.
Plug-in hybrid electric automobiles (PHEV).
These vehicles are a mix of gasoline and electricity. PHEVs come with an electric engine, battery, gasoline tank, and ICE. PHEVs use gasoline and electricity as fuel sources, producing tailpipe emissions when gasoline fuel is used.
Examples of PHEV vehicles include the Ford Escape PHEV PHEV, Honda Clarity PHEV, and Toyota RAV 4 PHEV.
Hybrid Electric Vehicles (HEV).
These cars combine an engine that is gasoline-powered and an electric motors. A “mild” battery of HEV battery is used only for heating, air conditioning, and stereo. A “full” HEV operates at slower speeds and higher speeds than electric vehicles.
Examples of HEV models include the Honda Insight or Ford Fusion, and the Toyota Prius.
In this article, we tried to provide you with information about electric car insurance. Insurance of EVs is very important and we have tried to provide you with the info you are looking for.