With fuel costs soaring over the past few years, more people are switching to electric vehicles to combat these rising prices.
And if you’re one of the people who have followed that trend, welcome aboard! Owning a car powered by electricity is great for the environment, your long-term wallet, and your peace of mind.
But once you’ve decided to switch to EV, it’s best to do it while staying informed about all the right things that accompany your major vehicular purchase. We’re not just talking about optional in-car accessories here, we’re also talking about necessary purchases, namely, EV insurance.
If it’s your first time treading these waters, don’t worry, we’ll break down all you need to know about EV car insurance in this article. We’ll also share some tips to help you get the best deal on your electric car insurance policy.
Average Price of EV Car Insurance
The prices of EV car insurance policies are similar to conventional vehicle car prices in the sense that it depends on two things: your EV’s make and a personal set of factors.
This means that the average price of EV car insurance differs from person to person. Your age, driving history, and your car’s build all come into play when determining the price you’ll pay.
According to a Forbes Advisor analysis, the average premium for an EV is $2,280 a year in the United States. This study averaged 41 different car models across the country to come to that conclusion.
From that same study, it’s been found that the car model with the highest car insurance policy is the Porsche Taycan at $4,683. Conversely, the electric car with the lowest insurance policy was the Toyota RAV4 hybrid at $1,776.
While most car insurance companies price their policies with additional fees, grabbing car insurance with Rollin Insurance and other transparent car insurance companies can give you peace of mind knowing you’re within budget.
8 Factors to Determine Your Car Insurance Cost
The cost of your electric car insurance policy, besides your car build, is determined by a variety of factors.
These include the following:
- Age and gender
- Your current location
- Past driving experience and mileage
- Driving history and traffic-related charges
- Claims history
- Credit score
- Your chosen coverage policy
- A car insurance deductible amount
Of course, the insurance company you decide to go with also plays a role in the cost of your policy. To get the best deal, it’s wise to compare different insurance companies and policies before committing.
By taking the time to understand what goes into determining your car insurance cost, you could potentially score a good EV insurance deal. If you live in a large city, there are a plethora of car insurance companies that would like your business, so don’t be afraid to call around and compare quotes.
Electric Cars vs Standard Car Insurance: What Costs More?
When you look at the cost of electric car insurance at a glance, it’s usually not that much more expensive than regular vehicle insurance.
However, if you’ve done your research, you can probably notice the trend that EVs cost slightly more than regular cars to insure.
While this higher cost may dissuade you from fully committing to the EV life, there are reasonable explanations as to why this is the case.
- Electric vehicle parts tend to cost more than standard parts, so when it comes to replacements and repairs, insurance companies factor that into the price of your policy.
- Electric vehicle repair shops often have higher labour costs as well, adding to the overall cost of your policy. Additionally, insurance companies may also factor in the increased safety of EVs.
- EV batteries also cost anywhere between $5,000 to $15,000 to replace. And since EV batteries need to be replaced every 15 to 20 years, EV car insurance policies need to be priced slightly higher to compensate for this inevitability.
How to Save on Electric Car Insurance
Besides shopping around and comparing various insurance quotes, you can save money on your EV car insurance policy by following three simple tricks.
Firstly, ask for EV discounts! Some car insurance companies offer bundled discounts—such as home and auto insurance coverage==at a less-than-standard rate. Some companies also provide discounts for switching from a gas-powered vehicle policy to an electric vehicle policy, even from other competitors.
Secondly, you can take advantage of a low-mileage history. If you drive your EV only occasionally, you could potentially be eligible to receive a discount on your policy. You can further boost your chance of success by showing a history of low mileage.
Another way to save on EV insurance costs is by looking into your state and federal programs that reward EV owners. Some states and cities offer rebates and tax credits for EV owners, so be sure to look into your city’s offerings to get a good idea of what you need.
Lastly, and perhaps most importantly, is to maintain a clean record. Insurance companies will have no problems giving you business if your driving record is without blemish. Demonstrating a record of safe and responsible driving is a great way to present a solid case for lower rates.
