Will you pay more to insure an electric car?
As more people look for ways to better protect the environment, electric vehicles (EVs) are becoming more and more popular. If countries accelerate their efforts to prioritize energy and climate goals, the International Energy Agency estimates that there could be as many as 30 million electric vehicles in the world by 2030. Electric cars do require no gas because they are powered by electricity, a renewable energy source, and generally require less maintenance than a gasoline vehicle.
The benefits are clear, but does an EV cost more to insure? Here are the details.
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Electric cars may require less maintenance
Owners of electric cars may find that their cars require less maintenance. The US Department of Energy suggests these reasons:
- There are fewer fluids, such as engine oil
- Regenerative braking reduces brake wear
- Electric vehicles have fewer moving parts
- Electronic parts like motor and battery require much less maintenance than their gas-powered counterparts
Less vehicle maintenance can result in savings, but what about the cost of insurance? If you drive a gasoline car and plan to go electric, leave some money in your budget for higher insurance costs.
Electric cars cost more to insure
According to Kelley Blue Book, electric cars tend to cost more to insure. Electric cars also cost a lot of money to acquire. And, although they require less maintenance, their high-tech components can cost more to repair and replace than those in a gasoline vehicle. Insurance companies need to factor in the additional repair costs, so they charge higher insurance rates.
It’s a good idea to talk to your agent before you buy to get an idea of the insurance costs for different electric vehicles. You can also contact several insurance providers to see where you can get the cheapest insurance rate.
Do electric cars require special insurance coverage?
There are no specific auto insurance requirements to own an electric vehicle. Insurance policies for electric cars are very similar to policies written for gasoline cars. You will need to carry the coverage required by state law, but if you want to feel more protected you may want to invest in more than the state minimum.
Before buying an electric vehicle, consider the total cost of ownership. Beyond a car loan payment, consider potential maintenance, insurance, and repair costs. Make sure you have enough insurance and think about which deductible is best for your financial situation. If you need help choosing an auto insurance company or want to get policy quotes, check out our list of the best auto insurance providers.