How much will electric car insurance really cost?
- Coverage clarity
- Auto insurance
Did you buy an electric vehicle? Congrats! We at VIU by HUB love new technology and everything green – including the green of saved money. Your electric vehicle likely cost more upfront than a gas car, but there’s a good chance you will make up the difference at the gas station and by not needing some types of maintenance (no more oil changes to squeeze into your schedule!).
What are you looking at for insurance costs though?
We’ve pulled together some of the most common questions we get about insurance and electric vehicles. This guide can answer a lot for you, but the VIU by HUB Advisory Team is always there for you if you have a question that isn’t answered here.
Are electric cars more or less expensive to insure?
The price to insure a car comes down to a few factors, but a big consideration is simply money. What does it cost to replace? What does it cost to repair? The higher cost to replace an electric vehicle comes with a higher premium. Those new and complex parts and equipment can be expensive to fix. If you’re in an accident in an electric car, it’s going to cost your insurance company more to cover repair costs. Unfortunately, that added cost can get passed on to you.
You might still come out ahead overall though. Did you get a tax incentive for buying an electric vehicle? How much less are you paying for fuel and maintenance? Your insurance premium is only one piece of the puzzle, and it shouldn’t discourage you from making the move to electric.
Electric car insurance versus conventional car insurance: Is there any special or specific insurance needed for an electric car?
There really isn’t that much of a difference! The biggest difference you’ll see is in your rates, as we discussed above. Your coverage, and local coverage requirements, will be the same regardless of what type of auto you have.
How to save on electric car insurance
The good news is that you can save on electric car insurance the same way you save on any auto insurance policy. Some good tips are keep a clean driving record, have a good credit score, adjust your coverage and deductible and keep track of your policies to prevent any lapses in coverage.
Enjoy the ride with the right auto insurance
Average insurance costs for different models of electric vehicles
Your personal circumstances will impact how insurance carriers compute the premium rate. Where you live, which specific electric vehicle you have, your age and more will determine your individual rate. A VIU by HUB Advisor can help you get a personalized quote.
Does owning an electric car increase my insurance risk?
You should expect to pay more because the cost associated with risks is higher. However, the risk of something happening to your car is the same whether it’s electric or not. Under most coverage forms from carriers today, there are no electric vehicle-only risks that will be included in your policy. One coverage that you may want to request if you own an electric car is OEM (original equipment manufacturer) Coverage. With OEM coverage, your policy is drafted to cover the cost for brand-name parts vs. remanufactured parts. It’s not specific to electric vehicles, but OEM coverage terms are more commonly added to electric vehicle policies than gas vehicles.
Will an electric vehicle charging station affect my homeowners insurance cost?
It’s possible. Some states will require you to have liability coverage for this equipment. Your carrier may also want to see documentation that it was installed correctly. Talk to our advisory team to learn how it will impact your policy.