Is electric car insurance more expensive?
April 28, 2022
In 2022, electric vehicle (EV) sales are soaring. According toan article from Forbes, the surge may be linked to the variety of EV models and the surge of gasoline prices, averaging $4.32 in the U.S. as of March.
By the end of 2022, nearly 670K electric vehicles are expected to be on the road. With that number in mind, you may be wondering, as an existing or potential EV owner, whether or not your car insurance could be more expensive.
Is it more expensive to insure an electric car?
Compared to a traditional gasoline vehicle, EVs can change your insurance premium costs. How? There are a couple of reasons that may happen.
Replacement parts and labor for electric vehicles tend to cost more, which can make the cost of insuring an electric vehicle for physical damage (Comprehensive and Collision coverages) higher than a similar gas-powered model. And since most EVs are newer model-year vehicles, most owners will want to help ensure their investment is protected with appropriate coverages such as Comprehensive and Collision.
Premiums or rates for all vehicles are dependent on the year, make, model and series/body style. Generally, cars that cost more to purchase can be more expensive to insure. However, if a vehicle performs well in accidents, is resistant to damage, protects its occupants in collisions, is not a target for theft, and parts and labor are readily available and perhaps even a bargain compared to others, then it may help reduce insurance costs.
Remember, every coverage is rated or priced separately. There are vehicle-specific factors that influence the price of most coverages. For example, a car that has sophisticated loss avoidance technology and performs well for keeping occupants safe will typically cost less for Medical Payments, Personal Injury Protection, or even Uninsured Motorist Bodily Injury coverages than a comparable vehicle without such features.
However, that same vehicle might cost more for Comprehensive and Collision coverage because the cost to repair the car itself can be higher, particularly if some of that expensive technology needs to be repaired or replaced with damaged structural parts like a bumper or hood.
So is it more expensive for electric car insurance? Not necessarily. According to our insurance team, the cost of coverage will vary depending on your vehicle and the coverages you ultimately select.
How much does it cost to insure an electric car?
If you’re mindful of your spending and budget, you want to know what your car insurance may cost you—especially if you own an electric vehicle. As we mentioned, the cost of coverage for an EV isn’t a one-size-fits-all because there are several different factors that go into an insurance rate.
Not only will your cost vary depending on your EV model and the coverages you select, but other considerations for why car insurance rates change are:
Number of drivers on your policy
Incident and driving history
Even with these factors in mind, there are car insurers who may offer electric vehicle discounts or other discounts based on your good driving (like HiRoad). We believe that there are folks who make thoughtful choices about their driving habits, their communities and the larger world. We’re here as an auto insurer to recognize and reward you for good/mindful habits behind the wheel.
With HiRoad, the trends of your good driving habits affect your bill, so naturally, your monthly price is variable based on how you behave behind the wheel. And although your monthly bill will vary, you’ll never pay more than your max base rate.
Is an electric car better for me?
It’s important to weigh the pros and cons of an electric vehicle, especially if you’re looking to buy one in the near future. With the rise in gas prices in 2022, many folks are opting for EVs to get them from point A to point B. So if you’re a regular commuter, mindful of your driving and hope to save some money at the pump—an electric car may be a good fit.
And although insuring an eclectic vehicle may cost you more on your insurance premium, it’s important to not sacrifice your coverage. Driving an EV can have more benefits (saving on gas, less air pollution) than can make that potential rate increase seem small in comparison.
If you opt for an electric vehicle and are looking for a car insurance company that rewards you for taking the high road, let’s talk HiRoad.The information in this article was obtained from various sources not associated with HiRoad®. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. HiRoad is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. HiRoad makes no guarantees of results from use of this information.
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