What You Need to Know About Electric Vehicle Insurance

Just like any other car, truck, or SUV, having insurance for your electric vehicle is an important part of protecting your ride. Many of those who own an electric vehicle may switch from the typical gas-powered transportation in hopes to save money on fuel while helping the environment. Even though you may save at the gas pump, you may be wondering why electric vehicle insurance typically costs more than comparable insurance for a traditional gas-powered vehicle.

First, What Is an Electric Vehicle?

An EV, or electric vehicle, is a vehicle that can be powered by an electric motor(s) drawing from an electric battery. These vehicles and the batteries that they run on can be charged from an external source. Depending on the specific type of EV, they can either solely rely on one or more electric batteries for driving, or they can have an electric battery to assist a gas-powered engine for acceleration. The reliance of both an electric battery and a gas engine classifies the latter type of transportation as a hybrid vehicle.

Why Do Electric Vehicles Typically Cost More to Insure?

Although electric vehicles and hybrids can potentially save you money in various ways, the insurance costs could be higher. Just as with any vehicle, electric vehicles have multiple factors that go into calculating how much various insurance costs will be. The following non-exhaustive list includes situations and scenarios that are used to calculate costs.

• Your driving history such as traffic violations and accidents
• Your electric vehicle’s model history of expenses and claims
• Your past driving history
• The location of where you live
• How much coverage is desired
• Your insurance deductible
• The status of your credit score

Along with the above factors, there are some other variables that are taken into consideration when determining insurance costs for your electric vehicle. For instance, typically electric and hybrid vehicles have a higher cost when it comes to buying, repairing, or replacing them. Many of these electric and hybrid vehicles have fewer moving parts, but the parts they do consist of can be quite expensive to repair or replace. When it’s time to have these repairs done, it can also be harder to find a shop or a mechanic that has been trained or specializes in working on electric vehicles.

Who Provides Electric Vehicle Insurance?

Is it hard to find insurance for your electric vehicle? The answer: It isn’t as hard to find as many may think. Typically, you can insure your electric vehicle through many of the same companies that offer regular car insurance.

How to Save on Electric Vehicle Insurance

When looking for electric vehicle insurance there are a few ways to potentially save. Some of the methods that could help you to save on your insurance are:

• Shop Around

One of the best ways to potentially save on your electric vehicle insurance is to consider using an independent insurance agent like Cross Insurance. Independent insurance agencies work with a variety of insurance carriers, meaning they can give you options. While you may be able to research and gather different rates online, without a careful understanding of plan types and the industry, you could end up comparing plans that offer different coverages.

• Ask About Discounts

Some insurers may offer various discounts for those with electric vehicles. Some “green car” discounts may be vehicle specific, but more generic discounts such as those for safe drivers, customers who combine home and auto or multiple auto policies, and students may also be available and can also help you save. If you are married, combining insurance with your spouse’s could also save you. Your occupation could potentially earn you a discount as well. Professions like teachers, first responders, medical professionals, or active-duty or retired veterans (including their immediate family), may be eligible for discounts through certain insurance carriers. 

• Pay Your Bill in Full 

If you pay your auto insurance premium in full versus monthly payments, your insurance carrier could give you a discount. Some carriers may also offer discounts if you opt to receive and sign your documents online. Discounts can vary, so check with an insurance agent to see what may be available for your situation.

• Research Before You Buy 

If you are thinking about purchasing a new electric vehicle, be proactive and get a rate for what the insurance may cost. Electric vehicles with high list prices generally have higher insurance premiums. Doing some research beforehand on what models cost more to insure can save you a significant amount down the road.

Are There Benefits of Driving an Electric Vehicle?

The benefits of driving an electric vehicle vary depending on what you find to be more important. The following are some of the potential benefits of owning and driving an electric vehicle.

• Energy Independence

Although owning an electric vehicle will still require you to charge your vehicle at a charging station, you can forget about visiting gas stations. There are charging stations conveniently located across the U.S., there are even apps and websites dedicated to helping individuals find the next charging station if help is needed. Another option is an at home charging station which can make owning an EV even more convenient and allow you to charge your vehicle at your pleasure.

• Environmental Impact

Electric vehicles are commonly known for their environmental impact, or lack thereof. EV’s don’t emit any exhaust emissions, and although going electric won’t fully eliminate your carbon emissions while driving, they can reduce it significantly. Hybrid vehicles can also help reduce your carbon footprint and may be a great option for those not fully ready to switch from a gasoline vehicle to a fully electric vehicle.

• Cost of Use and Maintenance

From spending less on gas to potentially spending less on maintenances, this too can be a great upside to owning an EV. Electric vehicles tend to have fewer parts needed to operate. While some of the main components of an EV may be costly if you do have to fix or replace them, avoiding or reducing other costs of typical maintenance of a gasoline powered vehicle such as oil changes, filters, spark plugs, brake pads and calipers, and various exhaust components, can potentially save you time and money.

• EV Performance

When it comes to driving you want a vehicle that gets you from where you are, to where you want to be, but it helps when your vehicle is a little more fun to drive. EV’s have multiple performance aspects, from instant torque, great handling, and sleek looks to even some models featuring assisted driving technology.

 

Electric Vehicle Insurance Quotes

Comparing multiple insurance quotes is a great way to potentially save. While many websites may show an average price for an insurance company, what you may pay could be drastically different depending on the state you live in, your claims history, and the amount of coverage you choose. Requesting a custom quote for your auto insurance is a great place to start when it comes to comparing coverages and saving. Reach out to one of our local offices to start the process today.

 

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.