On average, electric vehicle models cost 15% more to insure than conventional gas-powered vehicles. Of the electric vehicle models that had corresponding combustion models, MoneyGeek found 6% to 40% higher premiums. Teslas are amongst the most costly electric vehicles to insure.
Are electric cars cost more to insure?
Insurance for an electric car may cost more than insurance for a regular gas-powered car. An electric car’s higher price tag and more complex equipment means it may cost more to repair or replace if it’s in an accident. That can mean higher rates for policyholders who carry comprehensive and collision coverage.
Why is insurance on electric cars so high?
Electric car insurance is more expensive than conventional insurance, due to the need for specialist parts and servicing. There are specialist electric car insurance companies that offer tailored policies for low emissions vehicles.
Do electric cars have insurance?
Insurance premiums for EVs are generally higher than hybrids, petrol and diesel-powered cars, due to being new and expensive technology. Just like smartphones, the batteries that power electric cars only have a certain life span and can be extremely expensive to replace.
Is electric car insurance lower?
Electric cars can – in general – be more expensive to insure than an otherwise directly comparable petrol or diesel counterpart. In 2017, research by price-comparison website Comparethemarket found that some electric cars can cost as much as a 45% more to insure than their conventional counterparts.
What is the life span of an electric car battery?
How long do EV batteries last? Under current estimates, most EV batteries will last somewhere between 10-20 years before they need to be replaced. However, according to a survey by Cox Automotive, many potential EV buyers have reservations when it comes to battery life and the costs associated with battery replacement.
Are electric cars cheaper to insure than petrol?
Electric cars are now cheaper to insure than their petrol and diesel counterparts, according to analysis of the electric vehicle market by heycar.
Is a Tesla expensive to insure?
Teslas are more expensive to insure than many other luxury cars due to their high repair costs, which increases the cost of collision coverage.
Do you pay road tax on electric cars?
The good news is that electric cars are exempt from both first year and standard rates, so if you choose an electric vehicle, there will be no road tax payments included in your monthly charge throughout the length of your contract.
Are Nissan Leafs cheap insurance?
The Nissan LEAF is a battery-powered hatchback introduced by the Japanese manufacturer in 2010. It’s reasonably affordable to insure for an electric vehicle.
Are hybrid cars cheaper to insure?
There are no costly surprises with Hybrid Toyota Hybrids cost about the same as any conventional car to insure. Due to their growing popularity, high resale values and a range of competitive finance and leasing offers, they are no more expensive to buy than comparable petrol or diesel cars.
Is hybrid battery covered by insurance?
No, to insure a hybrid car you’ll find most standard providers will be able to cover you. Will car insurance cover damage to an electric battery? It’ll be covered if it’s damaged by an accident if you have comprehensive cover, or by the at-fault driver’s insurance if the accident wasn’t your fault.
Why are Teslas so expensive to insure UK?
As Teslas are a luxury electric vehicle, they can generally be more expensive to insure than competing vehicles. This is because of the cost of their technology and parts. This is likely to stem from years ago when insurers had no historic data to work with when it came to repair costs.
Are electric cars cheaper to maintain?
Electric vehicles have fewer parts to service, so they’re generally less expensive to repair and maintain than conventional cars.
How Much More Do Electric Vehicle Owners Pay For Insurance?
In light of the growing interest in and demand for electric vehicles, MoneyGeek examined insurance prices — as well as their combustion-engine counterparts, when relevant — to determine how much extra electric vehicle owners must pay for auto insurance. Annual insurance prices for the electric vehicles tested by MoneyGeek ranged from little more than $1,300 to more than $3,500, depending on the model. Loading.
Which Electric Vehicles Are the Most Expensive to Insure?
The Porsche Taycan, which costs $3,567 to cover, is the most costly electric vehicle to insure, ranking first on the list. That’s more than 1.5 times the average yearly cost of auto insurance, which is $1,424 on average. In addition to the Tesla Model Y, the Tesla Model X, and the Tesla Model S all have higher electric vehicle insurance premiums for 2021. The Tesla Model Y has a rate of $1,901, the Tesla Model X has a cost of $2,885, and the Tesla Model S has a charge of $3,022. The electric Hyundai Kona is at the lowest end of the insurance cost spectrum.
However, these prices are still less expensive than the popular gas-powered Honda Accord, which has an annual insurance cost of $1,234 dollars.
Most Expensive Electric Vehicles to Insure
Continue reading for more information. Insurance data for the year 2021 is not available.
Teslas Cost More to Cover Than the Majority of Electric Vehicles
Teslas are among the most costly electric vehicles to insure, according to the Insurance Institute for Highway Safety. According to MoneyGeek’s analysis of 17 electric vehicle models, three of the five electric vehicles with the highest insurance premiums were Teslas – specifically, the Tesla Model Y, the Tesla Model X, and the Tesla Model S. In general, the more costly a car is, the more expensive it is to insure it – this is one of the reasons why Tesla premiums are higher than the national average.
According to a 2015 research conducted by the Insurance Institute for Highway Safety (IIHS), the Tesla Model S had greater claim frequency, claim severity, and overall losses than similar big luxury vehicles of the same class.
According to Kelley Blue Book, a battery replacement for an ordinary car costs between $45 and $250 on the average.
To examine how insurance prices for each Tesla model compare to those of other vehicles in its category, please check the graph below.
Why Do Electric Vehicles Cost More to Insure?
The cost of car insurance for electric cars is typically substantially greater than the cost of car insurance for combustion vehicles. But why are rates for these vehicles so considerably higher than for other vehicles? In general, insurance for electric vehicles is not based on the same principles as insurance for traditional automobiles, according to Miranda Yan, co-founder of VinPit, a car data company that allows users to conduct searches for vehicle information or history.
“We’re not talking about the same thing,” Yan says. According to her, there are a few major reasons why electric vehicles tend to be more expensive to insure than other types of vehicles: 1
They tend to be more expensive than combustion vehicles.
On average, electric vehicles are more expensive than gasoline-powered automobiles. MoneyGeek discovered that the Fair Price of an electric version of a car model is 50 percent more than the Fair Price of the gas-powered version of the same model. 2
They’re more vulnerable to damage in accidents.
The number of sensor-based applications is increasing, which means they are more prone to being harmed in an accident, according to Yan. 3
When parts are damaged, they’re more likely to be replaced than repaired.
Yan points out that electric vehicles often feature components of varying sizes as well as sensory-based components that are normally not fixed and are instead suggested to be replaced. “Insurance companies believe that, in the event of an accident involving an electric car, the parts will most likely need to be replaced rather than fixed. Consequently, she believes, the cost of will rise, with the insurance company bearing some of the burden.” 4
Their parts are more expensive to replace.
The rise in the price of the part will also result in an increase in the repair costs for the insurance, according to Yan. For example, a sophisticated, developed battery will be more expensive for insurance companies to cover than a standard battery. It can cost up to $7,350 to replace a set of such batteries on average. This is due to the fact that the materials required to charge the battery and provide it with additional energy are sometimes prohibitively expensive. 5
They’re more likely to be considered totaled.
It is noted by Yan that “the increased price of the part would result in a higher repair cost for the insurance.” The expense of insuring a high-tech, custom-engineered battery, for example, is more expensive. It can cost up to $7,350 to replace one of these batteries on average. This is due to the fact that the materials required to charge the battery and provide it with additional energy are sometimes prohibitively expensive. 5
Comparable Make Model Analysis
The rise in the price of the part will also result in an increase in the repair costs to the insurance, according to Yan. For example, insurance firms charge more premiums to cover complex, designed batteries. It can cost up to $7,350 to replace a set of batteries on average. This is due to the fact that the materials required to charge the battery and provide it with additional energy are sometimes prohibitively expensive. 5
Electric Vehicle Insurance Cost Compared to Combustion Counterparts
Continue reading for more information. MoneyGeek also discovered that the Fair Price for an electric version of a model is 50 percent higher than the Fair Price for its gas-powered counterpart. The link between a vehicle’s purchase price and its insurance premiums is illustrated in the table below, which also highlights how much higher insurance prices are for electric vehicles.
Which Insurers Offer the Best Rates on Electric Vehicles?
Despite the fact that insurance prices for electric vehicles are often higher, several companies still provide cheap rates on auto insurance. A MoneyGeek assessment of 17 electric car models revealed that USAA had the lowest rates across the board for an annual premium, according to the review. Keep in mind, however, that this firm only provides services to active-duty military personnel, veterans, and their families. State Farm is the second most economical provider, and it is followed by Progressive Insurance.
Rates might vary depending on where you live and other criteria such as your driving history.
Insurance discounts might help you save money on your annual premiums by lowering your costs.
MoneyGeek suggests that you research all of the discounts that a provider offers and compare quotes from other insurance providers in order to obtain the best deal.
Average Electric Vehicle Insurance Costs By Company
Continue reading for more information.
- ProviderAverage Premium
- USAA $1,576
- State Farm $1,646
- Progressive $1,667
- GEICO $1,771
- Allstate $2,707
- ProviderAverage Premium
Can Electric Vehicles Help You Save In Other Ways?
While electric vehicles (EVs) may have higher insurance prices, they may actually save you money in ways that conventional vehicles cannot.
- Electricity is less expensive than natural gas. In many circumstances, it is less expensive to charge an electric car than it is to fill a conventional vehicle. Electric utility costs, on the other hand, range from one state to the next. Electric vehicle (EV) battery capacity and size vary, as do gasoline prices by state and the miles per gallon (mpg) of gas-powered automobiles — all of these factors can affect how affordable it is to operate an electric vehicle in comparison to a combustion vehicle
- EVs have lower maintenance costs than combustion vehicles. Because electric vehicles (EVs) are driven by a single component – the electric motor — they have fewer mechanical parts than gasoline-fueled vehicles. Because of this, less scheduled preventative maintenance services are needed. Maintenance for electric vehicles is predicted to cost $330 less per year on average than maintenance for gasoline-powered vehicles
- You may be eligible for government stimulus programs. On both the state and federal levels, there are several incentives available to EV drivers. Some of the benefits might include the following:
- Certain conditions apply to the federal tax credit for plug-in electric vehicles (PEVs). Tax subsidies and purchase rebates
- Exemptions from emissions testing
- And more. Reduced utility bills or incentives for charging electric vehicles
- Access to lanes for high-occupancy vehicles (HOVs)
- Support from legislators for electric vehicle sales or compulsory fleet needs
- Reduced expenses for license, registration, and road use — while some states impose additional fees for electric vehicles
- Electric vehicles (EVs) are better for the environment. Emissions from the life cycles of electric vehicles (EVs) are often lower than those from internal combustion engines (ICEs). However, it’s vital to evaluate the manner in which the electricity used to power an EV was created, as some electrical sources, such as coal and natural gas, can emit pollutants. On the plus side, emissions from power generation are on the decline in various parts of the world. According to a Carbon Brief research, they have decreased by 38 percent in the United Kingdom since 1990. This drop has been ascribed in major part to a cleaner electrical mix centered on natural gas and renewable energy sources rather than coal.
When evaluating the advantages of owning an electric car, there are several aspects to consider. Some drivers may be put off by the high insurance rates and purchase prices associated with some electric vehicles. Different reasons, on the other hand, may be more significant to certain people than others — for example, the potential savings that might be realized via long-term ownership, such as fewer trips to the mechanic, lower petrol expenses, government subsidies, and a smaller carbon footprint.
We looked at insurance prices for a variety of different make, model, and vehicle year combinations from national insurance carriers in a variety of places around the United States.
- 40-year-old guy with no traffic violations on his record
- Comprehensive and collision insurance with a 100/300/100 deductible and a $1,000 deductible
- 12k miles per year driven
It is possible to purchase $100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident, and $100,000 in property damage liability with the comprehensive and collision selections combined. a little about the author
How Having an Electric Car Affects Your Auto Insurance Rates
When compared to regular automobiles, electric vehicles have a number of financial advantages and disadvantages, including lower gas prices, tax benefits, and greater range, among other things. One important issue to consider is the cost of EV car insurance. What kind of influence does switching to an electric vehicle have on your monthly auto insurance premiums and how much does it cost? We discovered that, on average, automobile insurance for an electric vehicle is around 23 percent more expensive than the cost of car insurance for a comparable combustion model.
This will vary depending on the automobile you’re currently driving as well as other considerations like your driving history and the coverage you’ve chosen to be increased (or decreased).
How much do car insurance rates increase with an electric car?
The financial tradeoffs between electric and standard automobiles are many, and include, among other things: petrol costs, tax incentives, range of travel, among other things. One important consideration is the cost of EV auto insurance. When it comes to your monthly vehicle insurance costs, how much of a difference does driving an electric car make? According to our findings, automobile insurance for an electric vehicle is around 23 percent more costly than the cost of car insurance for a combustion vehicle of the same size and performance.
This will vary depending on the automobile you’re currently driving as well as other things like your driving history and the insurance coverage you choose. Contents
Cost of insurance for electric vs. gasoline cars, by model and insurer
|Insurance Company||Ford Focus||Chevy Spark||Kia Soul||Fiat 500|
Comparing electric automobiles to regular vehicles reveals a number of financial advantages and disadvantages, including lower gas prices, tax benefits, and a longer range, among other things. One important consideration is the cost of EV car insurance. How much of a difference does driving an electric vehicle make in your annual auto insurance premiums? According to our findings, automobile insurance for an electric vehicle is around 23 percent more expensive than the cost of car insurance for an identical combustion model.
This will vary depending on the automobile you’re currently driving as well as other considerations like your driving history and the coverage you’ve chosen.
Why is there a difference?
Car insurance rates may be greater in part because the cost of automobiles is higher, which may be a significant reason in this increase. Electric cars are typically loaded with cutting-edge technology, such as high-capacity batteries, sophisticated sensors, and other features that are difficult to come by. The higher the purchase price of a car, the more expensive it is to maintain. DISCOVER MORE ABOUT CHEAP AUTO INSURANCE While owning an electric vehicle does not necessarily make you a riskier driver in and of itself, it does give you a higher responsibility in the eyes of insurance providers.
The table below illustrates the differences between the electric and gas versions of the vehicles we investigated.
|Car||Gas||Electric||Percent cost increase for electric|
MSRP figures obtained from Kbb.com (Kelley Blue Book) Clearly, electric vehicles are more expensive than their gasoline-powered equivalents. The expense of repairing, much alone replacing, your Chevrolet Spark EV would be more than the cost of repairing or replacing a standard Chevrolet Spark. As a result, even if the driver does not represent a greater danger, insuring an electric vehicle may expose the insurance company to higher expenses than insuring a gas-powered vehicle, depending on the circumstances.
If you are interested in purchasing an electric vehicle but do not want to pay a higher insurance premium, your best chance for the time being is to shop around between different insurance companies and discover which one offers you the most competitive prices.
Our research team obtained insurance quotations for four different automobiles that were available in both electric and combustion versions in order to assess how the cost of insurance differed between the two types of vehicles.
Allstate, Geico, and State Farm are three major U.S. insurance who provided quotes for this article.
Everything You Need To Know About Insuring An Electric Vehicle
Electric cars, in contrast to their traditional counterparts, are not powered by combustion engines. In contrast, when you open the hood of an electric car, you’ll find an electric motor, which is powered by a huge battery pack, which is often housed in the vehicle’s underbelly. There are a variety of reasons why car enthusiasts choose electric automobiles. Some people purchase electric vehicles because of their ecologically beneficial reputation, while others move to electric autos in order to lower the cost of purchasing gasoline.
Whatever your motivation for contemplating this choice, you should be aware of the steps involved in insuring an electric car.
Electric car insurance vs. conventional car insurance
Robert Anderson created the first electric car (a horseless carriage) somewhere between 1832 and 1839, but it has only been in the last few decades that electric vehicles have gained popularity among consumers looking to purchase new automobiles. In the past, electric vehicles could only drive small distances on a single charge – 100 miles or less – and the high sticker costs meant that most buyers couldn’t afford them. However, many electric vehicles are now available for less than $40,000, and some have a range of more than 370 miles on a single battery charge.
Typically, electric vehicles produce higher insurance rates for drivers than their conventional counterparts.
As a result, if you total your electric vehicle, your insurance company will have to pay a bigger claim than it would for a conventional vehicle of same value.
How much does electric car insurance cost?
Bankrate obtained quotations on many brands and types of electric vehicles, despite the fact that electric vehicles are normally more expensive to insure than their gas-guzzling counterparts. We were pleasantly pleased by the low prices we received.
|Electric vehicle||Average 6-month premium||Average annual premium|
|smart EQ fortwo prime||$779||$1,557|
|smart EQ fortwo pure||$747||$1,494|
|Tesla Model 3||$1,142||$2,283|
|Tesla Model S||$1,901||$3,802|
|Tesla Model X||$1,662||$3,324|
However, they are only average interest rates. The amount of insurance you will have to pay for your electric car will be determined by a variety of unique rating variables, including:
- Distance traveled in a year
- Where you store your vehicle (on the street versus in a garage)
- Auto accident history
- Motor vehicle record
- Auto insurance history Your age (drivers under the age of 25 pay a higher rate)
- The safety features of the vehicle
- Your credit-based insurance score (which is used in the majority of states)
- Optional coverages (for example, collision and comprehensive) and deductibles are up to you.
So, for the purposes of insurance, insuring an electric car is quite comparable to insuring a conventional vehicle. While the value of your car plays a factor in your insurance prices, the auto insurance company looks at the overall picture, which includes your driving habits and your chance of being involved in an accident with another vehicle.
Drivers with a safe driving record and minimal mileage will often pay far less than those with a driving record that includes accidents and/or moving infractions.
Who provides electric car insurance?
Purchasing insurance for an electric vehicle is no different than purchasing insurance for a conventional vehicle. According to the Insurance Information Institute (Triple-I), most national and regional auto insurers write policies for electric vehicles, with coverage options such as liability, bodily injury, collision, and comprehensive. According to the Insurance Information Institute (Triple-I), the following insurers write policies for electric vehicles:
- Allstate, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, and USAA are just a few examples of insurance companies.
The electric/hybrid car industry has gotten a lot of attention lately, and some big auto insurers have started to dip their toes into it by publishing guides on the subject (see Allstate, Geico, Farmers, and State Farm), but you may have trouble getting savings for your electric vehicle. However, while you might expect to save money by bypassing the petrol station and perhaps benefiting from tax breaks, many insurance companies are not currently giving any discounts to drivers who opt to use an electric car.
Customers driving electric or hybrid vehicles can take advantage of special savings offered by several big carriers, such as Travelers and Liberty Mutual.
Tesla Insurance was established by the electric vehicle company Tesla in August of this year. Tesla now only offers auto insurance covers in California and Texas to all Model 3, Model S, Model X, Model Y, and Roadster Tesla customers, but the company wants to expand its coverage to include all states in the United States. Because of the company’s deep understanding of the vehicles’ technology and serviceability, Tesla marketing says, the manufacturer decided to offer an insurance policy to protect its customers.
- A Tesla Autonomous Car Protection Package is also available, which includes coverage for autonomous vehicle owner liability, cyber identity fraud fees, electronic key replacement, and wall chargers.
- Customers who currently own a Tesla in California can seek an online quotation and purchase a policy through the Tesla website.
- Tesla’s new insurance service in Texas is based on telemetry data, and it rewards customers for maintaining safe driving practices by providing them cheaper premiums.
- The firm claims to be able to give prices for Tesla insurance that are 20-30 percent lower than its competitors, although, as with other insurance companies, each driver’s ultimate quote will vary based on a variety of characteristics unique to him or her.
Tesla also provides a number of other discount packages. Take, for example, the ability to save money by utilizing the autopilot option. In California, usage-based discounts are available, but in Texas, Tesla’s real-time driver behavior monitoring software is standard.
How to save on electric car insurance
In the same way that conventional car owners save on insurance by avoiding accidents and traffic offenses, if you decide to acquire an electric vehicle, you may save on insurance in the same way. If you currently own an electric vehicle and are interested in obtaining more reasonable rates, you should explore receiving estimates from a number of different suppliers. It’s possible that moving to another firm will result in a better offer. You may also take advantage of special offers and discounts.
Investigate as well whether there are any local, state, or federal programs that provide refunds or tax credits for driving an electric car.
Electric vehicles and SUVs are eligible for tax credits of up to $7,500 from the federal government if they are purchased from specific manufacturers and models.
What are the benefits of driving electric vehicles?
The same way conventional car owners save on insurance by avoiding accidents and traffic offenses, if you opt to acquire an electric vehicle, you may save on insurance by doing the same thing. In the event that you currently own an electric vehicle and are interested in discovering more reasonable rates, you should try receiving quotations from a number of different companies. Switching to a different business may result in a better bargain for you. Furthermore, you may take advantage of exclusive offers and discounts.
Check into any rebates or tax credits that may be available through local, state, or federal programs if you own an electric vehicle.
Amounts ranging from $7,500 to $11,500 are available from the federal government for the purchase of select electric vehicles and SUVs.
- As a result of energy independence, while you will still require the use of a charging station to replenish your vehicle’s battery, you will no longer require the use of petrol stations. In the case of a home charging station, you may plug in your automobile when you come home from work, and the vehicle will be ready to drive the following morning
- Electric autos have a lower environmental effect since they emit no exhaust emissions. While driving an electric car may not completely remove your carbon footprint in transportation, it will greatly lower it in many cases. Aside from that, hybrid electric vehicle models run on either gasoline or battery power and are a popular choice for individuals who are not quite ready to make the whole transition to an all-electric vehicle
- Reduce breathed emissions: Tailpipe emissions damage both the environment and the inside of your vehicle to variable degrees, depending on factors such as the type of car you drive and the temperature control system it has. Reduce inhaled emissions: Volatile carbon oxides, organic chemicals, and particulate matter are all found in high concentrations in automobile emissions, making them potentially carcinogenic. It is possible to avoid inhaling these pollutants by driving an electric vehicle. Reduce your gasoline costs by: Typically, the cost of filling an automobile with gasoline or diesel exceeds the cost of operating an electric vehicle due to the higher power prices. Battery life is being extended:Reports on the performance of electric car batteries are inconsistent. In contrast, according to predictive modeling undertaken by the National Renewable Energy Laboratory, new technology has significantly increased the life of some types of batteries, extending their service life to 12 to 15 years. Furthermore, research on techniques to increase the battery life of electric vehicles continues. Reduced maintenance costs: When you drive an electric car, you won’t have to worry about frequent oil changes or replacing incidental parts like fan belts, gaskets, and radiator hoses on a regular basis. It has been claimed that some electric car owners have driven their vehicles for 70,000 miles or more on their original brake pads.
All signs are that the electric vehicle market will continue to increase in the future. As an ecologically friendly mode of transportation, they are quieter than traditional cars, and they emit none of the harmful exhaust emissions produced by conventional vehicles. For the most part, electric vehicles require less frequent maintenance and may go an incredible distance on their original components. It is possible that the sticker price of an electric vehicle will be slightly more, and that you will have to pay slightly higher insurance rates.
When you take the time to look around, you will frequently discover rates that are comparable to those offered by many traditional automotive manufacturers and models.
In order to obtain the lowest possible premium, inquire with agents about discount programs, which may include savings expressly for electric cars.
Frequently asked questions
In general, insurance for electric vehicles is more expensive than insurance for conventional automobiles. Because electric vehicles are more expensive to purchase and repair than conventional vehicles, insurance companies charge their customers extra for coverage. Having said that, the money you save on petrol and the tax breaks you receive may more than offset the additional cost of your coverage.
Do insurance providers offer discounts for electric vehicles?
While many insurance companies have not yet offered discounts for environmentally friendly automobiles, Liberty Mutual and Travelers Insurance have both offered discounts to drivers who choose for hybrid or electric vehicles as their mode of transportation.
Is it harder to insure an electric vehicle?
The vast majority of insurance firms provide coverage for electric vehicles (EV). When it comes to auto insurance, the chances of your existing carrier underwriting a policy for an electric vehicle are quite high if you decide to make the transition.
Electric Car Insurance: Is It More Expensive?
Despite the fact that the gap is shrinking, the purchase price of most electric and hybrid vehicles (which have both gas and battery-powered engines) is more than the purchase price of comparable gas-only vehicles. In general, higher-priced automobiles are more expensive to insure since they are also more expensive to fix or replace. As with traditional autos, electric vehicles have fewer moving components today; yet, the replacement parts can be rather expensive. When a battery pack is broken, it is common for specific safety precautions to be implemented, which increases the cost of the repair.
In order to cover the costs of the specialist training necessary, those certified facilities may charge a higher rate for repairs.
This added risk has nothing to do with the driver; rather, it is a result of the technology installed in the vehicle.
In general, higher-priced automobiles are more expensive to insure since they are also more expensive to fix or replace.
The Cheapest Electric Vehicles To Insure For 2019
Aside from a slight decrease in the price of gasoline-only vehicles, the purchase price of most electric and hybrid vehicles (which have both gas and battery-powered engines) is greater than the price of comparable gas-only vehicles.
Cars that are more expensive to purchase and maintain tend to be more expensive to insure since they are more expensive to fix or replace.
As with traditional autos, electric vehicles have fewer moving components today; yet, the replacement parts can be rather costly. Depending on the extent of the damage to the battery pack, various safety precautions may be required, which may increase the overall cost of the repair. In addition, there are fewer shops with technicians who are qualified to repair electric vehicles than there are for traditional vehicles, as compared to traditional automobiles. As a result of the particular training necessary, those competent facilities may charge a higher rate for repairs.
Because of the technology in the automobile, there is an extra danger that has nothing to do with the driver.
Cars that are more expensive to purchase and maintain tend to be more expensive to insure since they are more expensive to fix or replace.
What Affects EV Insurance Rates
The crux issue is the fact that electric vehicles (EVs) are often more expensive to repair after being involved in an accident than conventionally powered vehicles. Less costly automobiles tend to be less expensive to repair, and as a result, they will reach a lower threshold before being declared “totaled” once a collision occurs. Because of the high cost of their battery packs and other variables, electric vehicles (EVs) tend to be more expensive to repair after an accident. To give you an illustration, consider the Kia Soul EV, which starts at roughly $35,000, as opposed to the standard gas-powered Soul (with an automatic gearbox) which starts at little over $19,000.
- By that standard, it should come as no surprise that the most costly EVs to cover are also the most expensive to insure.
- And that’s only for the entry-level model, which starts at roughly $80,000 USD.
- The Tesla Model X SUV is a close second, with a yearly average premium of $3,042 compared to the competition.
- According to Insure.com, the average cost of insurance for all 2019 models is $1,812.
- In addition, certain newer electric vehicles, such as the electric versions of the Hyundai Kona and Kia Niro, are not yet included in the website’s data base.
- Insurance costs can differ dramatically from one driver to another depending on a variety of personal criteria such as gender, age, credit score, and driving history.
- They also vary from one state to another, depending on the legislation and court rulings that regulate insurance businesses in that state.
Cutting Your Costs
However, insuring an electric car does not have to be prohibitively expensive. The most effective strategy to ensure that you are paying the lowest possible prices is to compare quotes from numerous insurance companies simultaneously. Depending on the type and service provider, the cost difference might range from a few hundred dollars to several thousand dollars annually. Under particular, if your driving record or other personal characteristics are in question, this is critical. In order to establish a specific motorist’s rates, each insurance company employs its own actuarial formulae, with some charging more or less depending on the motorist’s or the aforementioned risk variables.
In exchange for bundling car and homeowner’s or renter’s insurance, driving fewer than a certain number of miles per year, taking a driver safety course, and using a device that tracks your driving habits and the number of miles traveled, insurance providers typically offer policyholders a reduction in their premiums.
A Tesla Model S that is two years old will cost an average of $641 less each year than it would to pay the cost of a new one. See the range of nationally available pre-owned electric vehicles here at MYEV.com, and if you’re wanting to sell an EV you already own, our listings are completely free.
5. Chevrolet Bolt EV
Insuring an electric car, on the other hand, does not have to be prohibitively expensive. Compare prices from a variety of providers to ensure you’re paying the lowest possible rate for the coverage you need. Depending on the type and service provider, the cost difference might be several hundred dollars each year. In particular, if your driving record or other personal characteristics are in question, this is critical. In order to establish a specific motorist’s rates, each insurance company employs its own actuarial methods, with some charging more or less depending on the motorist’s or the aforesaid risk variables.
In exchange for bundling car and homeowner’s or renter’s insurance, driving fewer than a certain number of miles per year, taking a driver safety course, and using a device that tracks your driving habits and the number of miles you travel, insurance providers typically offer discounts to policyholders.
In comparison to the cost of a new Tesla Model S, a two-year-old Tesla Model S will cost an average of $641 less each year on average.
4. Audi e-tron
The annual average premium is $1,845. Unexpectedly, for a vehicle that has just recently been introduced, Insure.com has average insurance premium data for the new Audi e-tron, and it appears to be less expensive than one might expect. With a starting price of around $80,000, the sporty e-tron is expected to have a range of 248 miles on a single charge when the battery is fully charged.
3. Nissan Leaf
The annual premium is $1,727 on average. Despite having a driving range of 150 miles (with a new Plus model coming later this year with a range of 226 miles), the popular Nissan Leaf ends up being less expensive to insure than the average new car.
2. Kia Soul EV
$1,663 in yearly premiums is the average. Because of this, the current Kia Soul EV remains inexpensive and practical, with a spacious cabin and a slew of optional luxury options. However, its 111-mile operational range is insufficient by today’s standards, therefore the 2020 model year makeover is expected.
1. Smart EQ ForTwo
The annual average premium is $1,486. The Smart EQ ForTwo is a small, two-seater with limited trunk capacity and a 58-mile range on a single charge, but it’s inexpensive to purchase and insure, thanks to its low cost of ownership and insurance. Auto insurance for the convertible is just little more expensive, averaging $1,688 per year on average.
Insure Electric Car: Everything You Need to Know
If you’re considering insuring an electric vehicle, you might be curious about the expenses involved with this environmentally friendly mode of transportation, particularly when compared to a gasoline-powered vehicle.
Learn about the expenses involved with electric cars, as well as how you might be able to take advantage of certain reductions.
What Is an Electric Car?
Electric vehicles, in contrast to gasoline-powered vehicles, do not rely on combustible engines for their power. As an alternative, they make use of an electric motor that is driven by a battery storage unit. The electric automobile, which was first created in 1832 by Robert Anderson, has exploded in popularity in recent years. Many electric vehicles are available for purchase for less than $40,000, and some are capable of traveling more than 370 miles on a single charge. Home charging stations might cost anywhere between $200 and $1000 to install, but they allow you to charge your vehicle at home before heading out on the road.
Why Do People Buy Electric Cars?
The popularity of electric cars has increased dramatically during the past decade. Many people purchase them in order to save money at the petrol station, while others purchase them in order to protect the environment. Some of the most popular causes are as follows:
- In recent years, electric vehicles have experienced a surge in popularity. While some are purchasing them to save money at the petrol station, some are purchasing them to benefit the environment. A few of the more well-known causes are as follows:
What Are the Insurance Costs for Electric Cars?
Insurance prices for electric vehicles are often higher than those for gasoline-powered vehicles. This is due to the fact that they are more expensive, are more prone to damage, and are more expensive to repair. According to Bankrate, the following are the premium prices for different electric vehicles during a six-month period:
- When compared to gasoline-powered automobiles, insurance prices for electric vehicles are often higher. Due to the fact that they are more expensive, more prone to damage, and more expensive to replace, they are the preferred choice. Bankrate estimates that the following electric vehicles have the following six-month premium costs:
According to ValuePenguin, if you have a $1000 premium for a gasoline-powered car, you may spend anywhere between $1180 and $1320 yearly for an electric vehicle, depending on your driving habits. While owning an electric vehicle does not necessarily make you a riskier driver, it does make you a greater liability in the eyes of insurance companies. While owning an electric vehicle does not necessarily make you a riskier driver, it does make you a greater liability in the eyes of insurance companies.
For example, if you have an accident with your Chevrolet Spark electric vehicle, it will cost more to fix or replace than a gasoline-powered Spark.
As time passes and electric vehicles become more popular, the costs connected with fixing them may decrease in price as a consequence of lower risk driving.
According to a survey conducted by Self Financial, insurance costs for electric vehicles are greater than those for gasoline-fueled vehicles.
- ValuePenguin estimates that if you have a $1000 yearly insurance premium for a gasoline-powered car, you may spend somewhere between $1180 and $1320 per year for an electric vehicle. Even if owning an electric car does not necessarily make you a riskier driver, insurance companies believe it does make you a bigger responsibility. While owning an electric vehicle does not necessarily make you a riskier driver, insurance companies believe it does make you a higher liability. A major factor is that electric vehicles are more expensive to acquire than conventional vehicles. For example, if you have an accident with your Chevrolet Spark electric vehicle, it will cost more to fix or replace than an equivalent gasoline-powered Spark. The insurance company will incur more expenses in insuring an electric vehicle than it would insuring a gasoline-powered vehicle. As time passes and electric vehicles become more popular, the costs connected with fixing them may decrease in price as a consequence of increased demand. Consequently, insurance prices for electric vehicles may decrease. According to a survey conducted by Self Financial, insurance costs for electric vehicles are greater than those for gasoline-powered vehicles.
Another aspect to consider is that the cost of repairs on electric cars is more than on other types of vehicles, mostly because of the limited availability of components from the manufacturer.
How Can You Save When Insuring an Electric Car?
Despite the fact that the prices of electric and hybrid cars have reduced over time, they are still prohibitively costly to acquire and insure. It’s a good idea to seek for ways to save money wherever you can, and you can save money on insurance in the same way that traditional vehicle owners can by avoiding traffic fines and accidents, as well as having a decent credit score, as explained previously.
In order to save even more money with your electric vehicle, follow these steps:
- Make informed decisions about how you file your claims. When you submit a claim with your vehicle insurance carrier, almost all of them will boost your premiums. These claims remain active on your account for three years, although the rate rise varies from state to state
- Look for reductions to offset the rate increase. These savings may seem little, but they may pile up over time. Ascertain whether or whether your existing insurance provider offers any reductions that you are not currently taking advantage of. Discounts for safe driving, multiple policies, alternative fuel, going paperless, and paying your premium in full are just a few examples
- Others include: Tax credit information may be found here. Electric cars may make it possible for you to take advantage of incentives available at the municipal, state, and national levels. For example, the California Clean Vehicle Rebate Program provides reimbursements of up to $4500 to Californians who purchase particular electric vehicles. Tax credits of up to $7500 are available from the federal government for some electric vehicles
- Shop around for insurance prices. The fact that you have a hybrid or an electric car should not discourage you from searching around for insurance. To ensure that you are receiving the greatest deal possible, compare prices from numerous organizations
- Look for firms who offer incentives. People who drive electric or hybrid cars may be eligible for special insurance savings from certain insurance carriers. Premium reductions for a six-month insurance vary according on the business, but on average, premium reductions are approximately 5 percent.
Make sensible decisions about how you file your claims! When you make a claim with your auto insurance carrier, almost all of them will boost your premiums. These claims remain active on your account for three years, but the rate rise varies from state to state; look for reductions to offset the cost of filing. Despite the fact that these reductions are minor, they pile up over time. Ascertain whether or whether your existing insurance provider offers any reductions that you are not currently taking advantage of.
- Incentives at the municipal, state, and federal levels may be available to you if you drive an electric car.
- Compare insurance quotes.
- The fact that you have a hybrid or an electric car should not discourage you from searching around for insurance coverage.
- People who drive electric or hybrid cars may be eligible for reductions from some insurance carriers.
Most And Least Expensive Green Cars To Insure 2021
Note from the editors: We receive a commission from affiliate links on Forbes Advisor. The thoughts and ratings of our editors are not influenced by commissions.
Compare Rates and Save on Your Auto Loan
MyAutoloan.com allows you to receive up to four loan options in minutes. “It’s not easy being green,” sung a renowned frog at one point. As for making the changeover from a gas-guzzler to something more environmentally friendly, while it is becoming more common, it will be difficult for some of us. According to a new report from CCC Information Services, a provider of data and technologies to the automotive, collision repair, and insurance industries, the average overall cost of repair for an electric vehicle (EV) is nearly 3 percent higher than the average overall cost of repair for a small car internal combustion engine (ICE).
For now, many collision repair facilities may find themselves behind the eight ball when it comes to new equipment and employee training, as well as improved network needs for linked EVs and new scanners and calibration equipment.
Even with somewhat higher repair costs, many drivers have opted for green vehicles as a means of saving fuel expenses, reducing emissions, and qualifying for a tax credit from the federal government.
If you’re in the market for an electric car, a hybrid vehicle, or a plug-in hybrid vehicle, here’s a look at the typical insurance prices for the most popular green vehicles.
The Least Expensive Green Cars to Insure
The Toyota RAV4 Hybrid, Kia Niro Hybrid, and Honda CR-V FHEV are the least costly green vehicles to insure among popular 2021 models, according to the Insurance Institute for Highway Safety.
Middle of the Pack: Medium-Expensive Green Cars to Insure
The Porsche Taycan is the most costly green car to insure among the top-selling hybrid and electric vehicle models for 2021, according to Insurance Institute for Highway Safety.
Car Insurance Rates for Green vs. Gas Vehicles
What is the difference between green automobiles and their gas-powered counterparts when it comes to car insurance rates? Our research looked at a number of the least cost green vehicles to insure when compared to comparable gas-powered ones. Models powered by gasoline are often less expensive to insure than their hybrid equivalents, for the most part.
What Is a Green Vehicle?
In order to run, a green automobile must be powered by alternative fuels such as electricity, hydrogen, compressed natural gas, ethanol, or biodiesel. The following are the green vehicles that are most frequently seen on the road:
- Vehicles that are a combination of gasoline and electricity. These automobiles are powered by both an electric motor and a gasoline engine. Models of hybrid automobiles include the Ford Fusion, Honda Accord, Kia Niro, and Toyota Prius, among others
- Plug-in hybrid electric vehicles include the Chevrolet Volt and Nissan Leaf (PHEVs). While these vehicles are powered by both gasoline and electricity, a plug-in hybrid vehicle (PHEV) may be recharged by plugging it into a standard wall socket. PHEVs often operate only on electricity at first (ranges can range from 10 to 50 miles), after which they transition to regular hybrid capability. Models of plug-in hybrid electric cars (PHEVs) include the Honda Clarity PHEV, Lincoln Aviator PHEV, and Mitsubishi Outlander PHEV
- All-electric vehicles are also available. These environmentally friendly automobiles are powered exclusively by electricity. All-electric vehicles must be recharged and have a limited driving range before they must be recharged again. All-electric vehicles such as the Chevrolet Bolt, Nissan Leaf, and Tesla Model 3 are examples of this.
The advantage of green automobiles is that they often have higher fuel efficiency and emit less pollutants. You may also be eligible for a federal tax credit of up to $7,500 if you purchase an all-electric or plug-in hybrid vehicle that was manufactured in or after 2010.
Why Are Green Vehicles More Expensive to Insure?
When determining their rates, auto insurance companies consider claims that have been paid for similar vehicles in the previous year. Example: If your specific model has a history of frequent and/or expensive claims, insurance premiums for all owners of that model will normally be higher than they are for other models. The expenses of repair and replacement have a considerable impact in the overall cost of a claim. Due to the complexity of the machinery and parts in electric and hybrid vehicles, they might be more expensive to fix or replace.
When you insure a green vehicle, your car insurance premiums are likely to be higher because of the greater cost of parts and the higher cost of claims when automobiles are totaled in accidents.
What Affects Car Insurance Cost?
When it comes to deciding your auto insurance rates, your environmentally friendly vehicle is not the sole consideration. Other prevalent factors are as follows:
- When it comes to deciding your auto insurance rates, your environmentally friendly vehicle isn’t the sole consideration. In addition, the following variables are frequently mentioned:
How Can I Save on My Car Insurance Rates?
If you are purchasing auto insurance for a green vehicle, here are a few tips to help you save money on your policy:
- Take your time and look around. Green vehicles are not treated the same way by all insurance companies. In order to save money on auto insurance, it is a good idea to compare rates from several different firms. Inquire about discounts. There are several sorts of auto insurance discounts available from insurance providers, including price cuts for safe drivers and excellent students, discounts for vehicle safety and anti-theft systems, and discounts for going paperless. Make use of telematics to your benefit. A number of automobile insurance firms provide discounts to drivers who engage in usage-based insurance programs, which measure safe driving habits such as speeding, forceful braking, cornering, and cell phone use, among others. Consider using a pay-per-mile plan. In the event that you are a low-mileage driver, such as someone who works from home, pay-per-mile vehicle insurance may be a suitable fit for your needs.
We analyzed insurance rates from Quadrant Information Services, a supplier of insurance data and analytics, as well as sales data from the top-selling car models for 2021 to determine the cheapest automobiles to insure. Using a clean driving record and $100,000 in bodily injury liability coverage per person, $300,000 per accident, and $100,000 in property damage liability coverage, as well as uninsured motorist coverage and any additional coverage needed by the state, the rates are calculated.
In addition, collision and comprehensive coverage are included with a $500 deductible.
Electric Car Insurance for Your EV
In general, auto insurance for an electric vehicle works in the same way as insurance for a vehicle that operates on gasoline or diesel. It is possible that the same familiar options will be accessible for electric vehicles (such as the Tesla Model 3 and Model S), as well as Porsche Taycan and Audi e-tron and Nissan LEAF.
Quality Auto Coverage Starts Here.
Insurance for electric vehicles is generally the same as insurance for vehicles that operate on gasoline or diesel fuel, in most respects. It is possible that the same familiar choices will be available for electric vehicles (such as the Tesla Model 3 and Model S), as well as Porsche Taycan and Audi e-tron, Nissan LEAF, and other similar models.
Bodily injury liability coverage, which helps pay for medical costs for someone else who is injured in an accident you cause, and property damage liability coverage, which helps pay for the repair or replacement of property damaged in an accident you cause, are the two types of liability coverage available. Most states have minimum necessary amounts of liability coverage; find out more about the auto insurance regulations in your state by visiting the state’s website.
This coverage contributes to the cost of repairing damage to your vehicle as a result of an accident, regardless of who was at fault. However, if you still owe money on your vehicle loan or if you lease your car, you may be required to carry collision coverage by your lender or lease holder, despite the fact that it is not legally required.
If your vehicle is damaged by something other than an accident, this coverage might assist you in paying for repairs or replacement. Comprehensive coverage often covers damage or loss caused by a variety of events, such as theft, animal damage, or hail, but you should check your individual policy to see what it covers in these situations.
Medical payments coverage
As the name indicates, this sort of coverage assists you in paying for medical expenses if you or your passengers are harmed in an accident while driving.
Personal injury protection (PIP)
PIP is only available in certain jurisdictions, and it can assist you in paying for expenditures incurred as a result of an event that is covered by the policy, such as medical bills, lost income, child care costs, and food delivery fees.
Uninsured and underinsured motorist coverage
This sort of coverage can assist you in the event that you are involved in an accident caused by someone who is uninsured (does not have vehicle insurance) or underinsured (does not have enough car insurance) (whose liability coverage limits are lower than the cost of the damage caused in the accident). In addition, there are extra coverages that you may wish to consider, such as rental reimbursement insurance. In order to obtain further information, contact your insurance carrier. According to Energy.gov, the majority of plug-in electric cars and plug-in hybrid vehicles use alternating current (AC) Level 1 or AC Level 2 charging infrastructure, which may be put in a garage or outside of the home.
You’ll want to check with your insurance provider once your EV charging station has been properly built to determine if it is covered by your homeowner’s insurance policy or if you’ll need to acquire additional coverage.
For electric vehicles, having roadside assistance coverage can aid you in having your vehicle towed to the nearest charging station, or some programs may even provide a mobile charging station that can charge your vehicle on the spot.
If you have any questions regarding purchasing auto insurance coverage for your electric vehicle, it’s a good idea to speak with your insurance provider.
They can assist you in understanding the many types of insurance coverages that are available and can give you with any extra information that will assist you in selecting the best insurance for your individual needs.