Electric Vehicle Car Insurance – Is it Cheaper?

Everyone knows electric cars are cheaper on gas, but are electric vehicles (EVs) really cheaper to insure? The insurance for a gasoline-fueled vehicle is stated to costs nearly ¼ of the cost of ownership, but what does it cost to insure a battery-powered vehicle such as, an EV?

Electric cars are relatively new to the market, therefore, it may surprise you to know that many locations around the US are not yet, prepared to provide coverage to EV owners. Even some insurance providers in the state of California either do not offer insurance policies for electric vehicles or are only able to provide coverage for an EV that is listed as a secondary car. 

While rates can vary, if an EV is listed as a secondary vehicle, the rates are typically lower for an electric vehicle than they would be for a car with a gasoline-powered engine. In some cases, however, electric vehicles can be slightly more expensive to insure than traditional fuel-driven cars.

Some countries such as, Canada, do not require electric cars to meet the same safety standards that are required for traditional fueled cars. However, in Vancouver, the cost to insure an electric car is around the same price to insure a conventional car.

The rate quote comparison site, NetQuote stated that an insurance discount is often given to drivers of electric cars because EV owners convey a responsible image to insurance providers. However, this statement is subject to change as electric vehicles become increasingly more popular.

One major difference between EVs and conventional fuel-powered vehicles is the cost of repair, which can affect the cost of the insurance premium, as well. Right now, most EVs are rare and many of the parts are not yet, readily available, like the parts for most conventional vehicles. In addition, technicians need to be specially trained to be able to repair an EV. Therefore, EV owners are not able to take their vehicle to their local mechanic because he will not be trained or have the right parts, which increases the cost to insure the vehicle – thus, increasing the premium rate, as well. While, the outlook is good for more and more repair shops to receive the right EV training and become skilled on EV parts, it is expected to take some time.

With EV insurance, the same rules apply for a good rate – a risk assessment done by the insurance company. While many companies do not have specific policies for electric vehicles, insurance providers will continue to base your insurance premium on your age, gender, driving record and more. In contrast to traditional vehicles, the make and model of the EV is less important in determining the rate. However, because of the safety aspect of EVs, most insurance providers will offer hybrid and electric owners a 10 percent discount, at least. However, if information about available discounts is not offered up front by the provider, EV owners should ask about electric car discounts, safety discounts or any other discounts that may be available to them in order to take advantage of substantial savings.

Insurance companies are writing insurance policies for Neighborhood Electric Vehicles, golf carts, and Low-Speed Vehicles, which means that EV-specific policies should be available soon. Until then, EV owners should rely on discounts and having a good driving record to get the cheapest rates.

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