People are attracted to plug-in automobiles because they are cheaper to run in comparison to similar petrol options and they are environmentally friendly. EVs currently offer hardly any insurance advantages. It is important to point out that almost all insurers offer quotes as usual but they may generally be slightly higher. This position may improve as their popularity increases.
Motorists should remember that the vehicle insured is only one part of a complex equation. They can still get all the discounts offered for various reasons like having no claim or traffic ticket, being a homeowner, having a great credit score and living in a peaceful zip code. Perhaps, they can overcome additional premiums by shopping a bit harder than usual and saving more money in the process.
Gas Powered vs Electric Car Insurance
There isn’t really any difference in terms of getting quotes and arranging coverage. Nonetheless, they are different from conventional automobiles in terms of technology and operation. They have almost all the parts like a typical auto, plus they have expensive battery systems which may have to be replaced in case of an accident.
Electric automobiles are usually more expensive to insure because their price and repair costs are higher than similar petrol models. Furthermore, they are more likely to cause accidents for two reasons. They can accelerate really fast from standstill thanks to peak pulling power and they are quiet which makes them extra dangerous for pedestrians, cyclists and other road users.
The good news is that the gap is narrowing as their popularity increases and more of them come into circulation, which makes them more common in terms of parts and repair costs.
It costs about $100 more per year to insure an electric car compared to similar gas-powered models, according to Forbes, which used data from Quadrant Information Services. This gap is likely to widen a bit for young and new drivers. Also, it assumes that people spared time to find competitive prices. You cannot really expect to get the best rates if you get only one or two quotes. Here are the rates for top-selling vehicles;
Electric vs. Gas Premium Comparison Table
|Make & Model||Average annual electric auto insurance cost||Average annual petrol auto insurance cost|
There are plenty of safety tests, accident data, usage, pricing and durability information about most petrol-powered automobiles. Companies even look at what type of drivers purchase certain automobiles. In comparison, plug-ins haven’t really gone through the whole life cycle and are tested by time. Gathering of further statistical data is probably necessary to increase the accuracy of the rates.
Insurance companies habitually react to lesser information available about them with caution. In such circumstances, their default reaction is to add a little on the prices for these unknowns. This would improve as the time passes and they are widely in circulation. It is unlikely but it could get worse too. Only time will tell how it goes. Some even predict that in thirty years we won’t need insurance in the sense we know now. Who knows.
Average Insurance Costs for Popular EVs
As a general rule, the more expensive and powerful the auto is the higher premium you would need to pay. This rule applies to all of them, regardless of the power source. Looking at some of the popular plug-ins may offer a little insight into the costs. According to Bankrate, here are the average costs for some of the popular models;
|Electric vehicle (2022 model)||Average 6-month premium||Average annual premium|
|Ford F-150 Lightning||$980||$1,960|
|Tesla Model 3||$1,306||$2,612|
|Tesla Model S||$2,033||$4,066|
|Tesla Model X||$2,097||$4,193|
These are the median figures. Each owner may pay a little more or less depending on age, experience and a whole lot of other factors. For example, zip code is a very important determinant. Credit score, gender, homeownership and occupation are some of the other considerations.
A different make and model plug-in can cost more than double the premium. As you can see on the table above, the average insurance cost for a Tesla Model X is $4,193 and it is more than twice higher than a Toyota Prius at $1,740.
Which Companies Insure Electric Cars?
Once again, they are slightly different but still vehicles. All the usual principles of arranging a policy apply to them as well. You can choose the coverage in the same way and almost all insurers would be happy to sell you a policy for your environmentally friendly car. Considering there aren’t many older models in the market at the moment, you would probably want full coverage.
Some companies like Liberty Mutual, Travelers, Farmers and Mercury may offer specific environmentally friendly auto discounts for hybrids and full plug-ins. These names will probably change in time as they may stop such promotions or some others do the same.
However, you shouldn’t assume that they are going to work out cheaper after all the discounts applied. With a little bit of work, you will find the most competitive option in no time. First decide on the level of protection you want and get a few quotes from several companies. Often, a totally different provider comes on top. That is why you shouldn’t pay too much attention to advertisements or special savings.
There is no difference from a typical policy arrangement and you need to go about finding the best coverage, cheapest price and most trusted carrier the same way as everybody. All the usual factors like age, gender, zip code, credit score and claim and traffic history will be on play. And you would get savings when you are a homeowner, have a garage and so on.
You may be able to mitigate the extra premium you may have to pay by finding rebates offered at state and federal levels for owning a green car.
Electrical automobiles don’t have the fumes and are environmentally friendly. You may have to pay a little more to buy and insure them. But they are quieter, cheaper to run, require less regular maintenance and their parts usually last longer than typical petrol engines. So, they may actually be more economical overall.
Their popularity is increasing as well. In 2022, motorists bought about 45% more plug-in vehicles in comparison to 2021. The more commonplace they become the cheaper insurance will cost. In addition, the charging stations will be much more widespread. So, things are looking up for their owners and existing hurdles may be temporary.