Reasons To Why Is Electric Car Insurance So Unbelievably Expensive?

TLTR: This blog explains what electric car insurance is, why you should get it, where you can get coverage, and how much it may cost.

The top-selling feature of electric cars is that they’re much cheaper to run than their gas-guzzling counterparts. Perhaps that’s why, according to Statista, Tesla ranked in almost $32 billion in U.S. sales of their electric vehicles in the fiscal year 2020 alone.

That said, there are also several drawbacks to owning an electric car. For starters, they tend to cost more than regular cars. Electric car insurance can be over 20% more expensive compared to traditional car insurance.

In this blog

What is electric car insurance?

Electric cars, just like traditional cars, are vulnerable to accidents and damage. As with traditional car insurance, electric car insurance protects your electric vehicle (EV) against various liabilities. These liabilities can include accidental damage, theft, fire hazards, natural calamities, and so forth. It also offers financial protection against damages and injuries where you’re found to be at fault.  

value electric car insurance

Why is it more expensive?

Rates for this policy generally depend on the type/class of car you’re insuring and your driving record. However, insurance for your EV typically tends to cost more than for traditional vehicles. This is largely because the majority of EVs need factory-authorized repairs due to their custom-patented parts. 

And while you can still set the same liability limits for your EV, collision and comprehensive insurance can cost more. This is due to the high price tags of the vehicles compared to gas-powered cars.  

The good news is that cost gap is slowly shrinking as the prices for EVs gradually come down over time. With an increase in the number of repair centers and charging hubs throughout the U.S., the prices to insure EVs are likely to drop over the next decade.      

How much does electric car insurance cost?

The general rule of thumb is that the more it costs to protect a vehicle from hazards like fire, theft, accidents, etc., the more expensive it becomes to insure it. However, there are multiple other factors that have an effect on the price of electric car insurance.

As with traditional cars, your age, the state you live in, and your driving history all impact how much you need to pay in premiums.

If you have a history of driving accidents, you will need to pay more than someone who has a clean record. According to a study conducted by Bankrate, people with EVs will need to pay anywhere from $486 to $748 in 6-month premiums.

budget electric car insurance

Where do I get electric car insurance?

Most insurance companies that provide traditional car insurance and commercial auto insurance also provide electric car insurance. If you drive a Tesla model, the company came up with its own custom insurance coverage aptly named Tesla Insurance.

Ask for quotes from three to four car insurance carriers and compare the range, limitations, and features that they provide. You can also ask for your agent to do it for you. If your agent is independent, they can assess your situation and find the best coverage to meet your needs and demands.

So, find an agent to help you out with finding the right car insurance today.

Has this blog been helpful to you? Let us know in the comments down below.

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