One of the questions that people ask when they consider purchasing an EV (electric vehicle) is how much does electric car insurance cost? After all, these vehicles don’t have engines and are generally much safer than fuel-powered cars, so the insurance should be cheaper, right? Let’s find out.
Do electric cars cost more to insure?
So, is insurance cheaper for electric cars? Well, the answer is, it depends! Unfortunately, there are far too many variables involved to give a sweeping statement as to which type of car is cheapest when it comes to insurance. With that said, EV insurance rates do tend to be more expensive when you look at the data as a whole; however, some of this could be offset with an electric car insurance discount via tax credits.
How much does insurance cost?
According to a report by Self Financial, the electric car insurance cost is slightly higher than when measured against gasoline-fueled vehicles. On average, electric vehicles are $442 more expensive to insure than their gas equivalents per annum. Looking at the average rates, the price to ensure a gas-powered for one year car comes in at $1232, whereas electric will set you back $1674. However, when you consider the running costs of each vehicle, things start to look a little bit brighter for team electric since the running costs of an electric vehicle are around $600 less per year.
In general. electric car insurance is more pricey due to the fact that electric vehicles are typically more expensive than standard gasoline-powered vehicles. This means that if you are involved in an accident, your insurer will be required to pay a greater claim settlement, which will be reflected in your insurance premium. Second, electric vehicles haven’t been on the market long enough for there to be a large number of low-cost used models; thus, the average price of an electric vehicle is substantially more than that of a gasoline-powered vehicle. As time passes, the figure will begin to decline, and insurance costs will likely follow suit.
Furthermore, electric vehicles are often equipped with cutting-edge technology, including high-capacity batteries, smart sensors, and other features. As a result, the more expensive an automobile is to purchase, the more costly it is to fix, and the higher the insurance rate. If you have an accident in your electric vehicle and damage the battery, it could cost up to $15,000 to replace. However, for gas-powered cars, the likelihood of this type of damage occurring in minor collisions does not exist. All of this paints a skewed picture of the reported cost of electric vehicle insurance, at least when comparing similar models side by side.
How to save on electric car insurance
Even though the cost of electric and hybrid vehicles has fallen over the past few years, they are still expensive to purchase and insure. It’s always a good idea to seek ways to cut costs, and you can save money on insurance by avoiding traffic fines and accidents, as well as having a decent credit score. To cut down even more on your electric car insurance costs, follow these steps:
- Be cautious when filing claims. Every time you submit a claim to your car insurance company, your premium will go up. These claims typically remain on your file for around three years, so think twice before filing for something minor.
- Ask your current insurance provider for discounts. As they say, if you don’t ask, you don’t get. It’s worth giving your insurance provider a call to see if they offer an electric car insurance discount. They may also give incentives for things such as alternative fuel, low emissions, or even good driving. You can usually secure a large saving if you pay your premium upfront, which is definitely worth considering if you have the capability to do that.
- You might be able to take advantage of incentives at the local, state, and federal levels if you drive an electric vehicle. The California Clean Vehicle Rebate Program, for example, offers rebates of up to $4500 to California residents who purchase specific electric vehicles. Tax credits of up to $7500 are available from the federal government for some electric automobiles.
- Make sure to shop around. Don’t let the fact that you’re insuring a hybrid or electric vehicle prevent you from shopping for cheaper coverage. Compare prices from a few different companies to ensure you’re receiving the cheapest deal.
How much do car insurance rates increase with an electric car?
According to Value Penguin, the cost of automobile insurance for an electric vehicle is roughly 23% higher than the cost of car insurance for a comparable combustion model.
How much does Electric Car insurance cost in New York?
Is insurance cheaper for electric cars in New York? Well, unfortunately, insurance in New York can be more expensive because it’s a no-fault state with a high rate of insurance fraud. On top of this, there are a number of accidents, claims, and payouts in New York that are far higher than the national average, which means that premiums are increasing too. With that said, if you follow the points listed above, you should still be able to land a great deal and save yourself some money on your insurance bill.