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Electric vehicles tend to have higher insurance premiums than gas cars because on average, they cost more to buy. However, prices are reaching parity between gas and EVs and insurance prices are sure to follow.
On average, it costs about 25% more to insure an electric car than an equivalent gas car, mostly because EVs tend to have a higher sticker price. Repairing and replacing the computerized, high-tech components commonly found in electric vehicles (EVs) often means higher costs compared to traditional, lower tech auto parts. Additionally, there is a scarcity of shops and technicians equipped with the expertise to effectively service electric vehicles. This means that qualified facilities may charge premium rates for their services.
A lot of the insurance costs come down to batteries. After even a relatively mild accident, insurance companies are worried about being liable if the battery has an issue in the future. As a result, cars that have very little damage may be totaled out. One salvage company estimated that nearly 95% of the EV batteries stored in their yards are undamaged and could be reused.
There are several ways to reduce your monthly insurance payment. The number one tip is to shop around. Insurance rates vary by vehicle model, insurance company, and state, so you’ll want to hunt for the best deal. Some insurers offer discounts for electric and hybrid vehicles, though you’ll likely have to ask for a quote before you can find out how much you can save.
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