Electric Car Insurance: Comfort, fuel savings, and environmental benefits are just a few of the reasons why drivers opt for an electric vehicle. Nevertheless, while making the switch can provide numerous benefits, you should consider the big picture of electric car ownership. How much does it cost to insure an electric automobile over a gas car, for example? Understanding how to effectively insure an electric vehicle can not only save you money but will also guarantee that you have the proper coverage for your new purchase.
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Electric car insurance vs. conventional car insurance
In most cases, insuring an electric vehicle will cost more than insuring a regular automobile. This is primarily owing to the greater purchase price of an electric vehicle as well as the fact that electric vehicles often have higher repair expenses, particularly those with pricey technology features.
For example, auto insurance is aware that replacing an electric vehicle will likely cost more than replacing a conventional vehicle. Similarly, if even a slight accident damages an electric vehicle’s battery pack, the cost to replace this critical component may approach $15,000.
How much does electric car insurance cost?
Although electric vehicles are normally more expensive to insure than gas-powered equivalents, Bankrate evaluated premiums for many makes and models using data given by Quadrant Information Services to provide insight into how expenses are changed when insuring an electric vehicle.
| Electric vehicle (2022 model) | Average 6-month premium | Average annual premium |
|---|---|---|
| Audi e-tron | $2,134 | $4,268 |
| Chevy Bolt | $915 | $1,830 |
| Hyundai Ioniq | $1,201 | $2,402 |
| Ford F-150 Lightning | $980 | $1,960 |
| Nissan Leaf | $902 | $1,804 |
| Polestar 2 | $1,213 | $2,426 |
| Rivian R1T | $1,495 | $2,989 |
| Tesla Model 3 | $1,306 | $2,612 |
| Tesla Model S | $2,033 | $4,066 |
| Tesla Model X | $2,097 | $4,193 |
| Toyota Prius | $870 | $1,740 |
Who provides electric car insurance?
Insuring an electric vehicle is the same as insuring a conventional vehicle. Liability, bodily injury, collision, and comprehensive coverages are all available with electric car policies. According to the Insurance Information Institute (Triple-I), most national and regional auto insurers write policies for electric vehicles, including:
- Allstate
- Farmers
- Geico
- Liberty Mutual
- Nationwide
- Progressive
- State Farm
- USAA
While several large auto insurers have begun to dip their toes into the electric/hybrid vehicle market by offering guidelines on the subject (see Allstate, Geico, Farmers, and State Farm), you may have difficulty getting discounts for your electrical vehicle. While you can expect to save money by avoiding the petrol station and possibly benefiting from tax breaks, many insurance companies do not now give discounts to drivers who pick an electric vehicle.
Tesla Insurance
Tesla owners can purchase Tesla Insurance using the mobile app. It provides all mandatory car insurance coverage, such as bodily injury and property damage liability, collision, and comprehensive insurance. Tesla Insurance is unique in that it rates a driver’s car insurance coverage based on real-time driving patterns and behaviors as observed by technology within the Tesla itself, and this rating may alter depending on the vehicle’s monthly Safety Score. Car insurance rating characteristics such as age, claims history, and credit, among others, is not used to grade drivers. Instead, Tesla analyses the sort of car you drive, where you live, how frequently and safely you drive, and the coverage you choose.
Tesla now offers an Autonomous Vehicle Protection Package for drivers who want to use the autonomous driving feature, which includes autonomous car owner liability, cyber identity fraud fees, electronic key replacement, and wall charger coverage.
Tesla Insurance is currently only offered in the following states: Arizona, Colorado, Illinois, Nevada, Ohio, Oregon, Texas, and Virginia. It is available in California, although it does not base prices on telematics data. Furthermore, if you own a Tesla but also own other vehicles, you can cover them with a Tesla policy.
How to save on electric car insurance
If you decide to buy an electric vehicle, you can save money on insurance by doing the same things that regular car owners do: avoiding accidents and traffic offenses. If you currently own an electric vehicle and are looking for more inexpensive rates, consider receiving estimates from different companies. Switching to another firm may provide you with a better bargain.
You can also benefit from discount schemes. According to Triple-I, insurers give a variety of discounts for acquiring several policies, insuring more than one vehicle, remaining claims-free, and taking a defensive driving course, among other things.
In addition, look into local, state, and federal programs that provide rebates or tax credits for owning an electric vehicle. The California Clean Vehicle Rebate Programme, for example, offers rebates of up to $4,000 to California residents who purchase a qualified electric battery vehicle. The federal government provides tax credits of up to $7,500 for the purchase of select electric automobiles and SUVs.
Frequently Asked Questions
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Do electrical vehicles cost more to insure?
In general, electric vehicles are more expensive to insure than conventional automobiles. Because electric vehicles are more expensive to buy and service, insurance companies charge their customers more for coverage. But, the savings on petrol and tax breaks may more than offset the higher cost of your policy.
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Do insurance providers offer discounts for electric vehicles?
While many insurance companies have yet to offer discounts for environmentally friendly automobiles, Liberty Mutual and Travelers both offer discounts to customers who opt for a hybrid or electric vehicles.
