Battery Electric Vehicles (BEVs) are expected to have a significant impact on the auto insurance industry. One of the main ways they will affect the industry is by reducing the number of accidents and claims, as electric vehicles are less likely to be involved in accidents due to their advanced safety features and low center of gravity. This could lead to lower claims and lower insurance premiums for EV owners.
Electric vehicles' car insurance costs:
Electric car insurance costs can vary depending on several factors, such as the make and model of the vehicle, the driver's age and driving history, and the location where the car is primarily driven. However, on average, electric cars tend to be more expensive to insure than traditional gas-powered cars.
Average Car Insurance cost for Electric Vehicles in the USA
According to a study by the website Compare.com, the average cost of insurance for an electric vehicle is around $1,487 per year, compared to $1,555 per year for a traditional gas-powered car. However, it's important to note that these are just averages and your actual cost may vary depending on your specific circumstances. It's recommended to shop around and compare rates from multiple insurance companies to find the best coverage and rates for your electric vehicle.
Why does Electric vehicles cost more to insure?
The main reason for this is that electric cars are relatively new technology and are more expensive to repair or replace than traditional cars. The high-voltage battery and other electrical components of electric cars can be costly to repair or replace in the event of an accident or damage. Additionally, the specialized knowledge and equipment required to repair electric cars can also make them more expensive to insure.
Differences between insuring Electric vehicles and gas vehicles:
Electric car insurance and gas car insurance can have some similarities and some differences. Here are a few examples:
Cost: On average, electric cars tend to be more expensive to insure than traditional gas-powered cars. This is mainly due to the high-voltage battery and other electrical components of electric cars, which can be costly to repair or replace in the event of an accident or damage. Additionally, the specialized knowledge and equipment required to repair electric cars can also make them more expensive to insure. However, it's important to shop around and compare rates from multiple insurance companies to find the best coverage and rates for your electric or gas car.
Safety: Electric cars are considered to be safer than traditional gas-powered cars. They have a lower center of gravity, which makes them less likely to rollover in an accident. Additionally, they are also equipped with advanced safety features such as automatic emergency braking, lane departure warning, and rearview cameras, which can help prevent accidents.
Environmental Factors: Electric cars produce no emissions and are considered to be more environmentally friendly than traditional gas-powered cars. Some insurance companies may offer discounts or special rates for electric cars as they are considered to be greener.
Battery Replacement: Electric cars have a battery that needs replacement after a certain period of time, unlike traditional gas-powered cars. The cost of battery replacement can be high and it's important to consider additional coverage options, such as charging equipment coverage, loss of use coverage, or coverage for rental cars in case the vehicle has to be in the shop for an extended period of time.
Distance: Electric cars have a limited range on a single charge and this may affect the insurance premium. Some insurance companies may consider the distance a vehicle is driven as a factor in determining the premium, and therefore, a shorter distance driven may lead to a lower premium.
Overall, it's important to consider the specific make and model of the electric or gas car, the driver's age and driving history, and the location where the car is primarily driven when comparing electric car insurance and gas car insurance. It's also recommended to shop around and compare rates from multiple insurance companies to find the best coverage and rates for your specific situation.
Which car insurance companies sell good policies for electric vehicles?
Many traditional auto insurance companies offer coverage for electric cars, but not all of them may have the same coverage options or discounts available. Some companies that are known to sell electric car insurance include:
Geico: They offer coverage options for electric vehicles, in addition Geico offers discounts specifically for electric vehicles and also offer discounts for safety features like Automatic Emergency Braking, Lane Departure Warning, and Rearview Cameras.
State Farm: Offers coverage options for electric cars and they do offer discounts for electric vehicles, as part of their efforts to support environmentally-friendly options.
Allstate: Offers coverage options for electric cars and offers a discount for electric vehicles, which can help lower your premium. Keep in mind that you must request for green vehicle's discounts and/or some safety device discounts from your electric vehicle.
Nationwide: Offers coverage options for electric cars and offers a discount for electric vehicles combining with SmartRide,will help lower your premium.
USAA: Offers coverage options for electric cars and may offer discounts for low-carbon emission vehicles, also known as green vehicles or environmentally-friendly vehicles.
Progressive: They have a program that offer discounts for electric vehicles and may offer specialized coverage options for electric cars.
Liberty Mutual: They offer coverage options for electric cars and may offer discounts for EV, however, you must request for additional discounts to obtain a substantially good discount for your EV's policy such as SmartRide, or your EV default safety devices.
There are several ways to save on electric car insurance:
Shop around: Compare rates from multiple insurance companies to find the best coverage and rates for your specific situation.
Bundling: Consider bundling your auto insurance with other types of insurance, such as homeowners or renters insurance, as some companies offer discounts for bundling policies.
Safety features: Electric cars are typically equipped with advanced safety features such as automatic emergency braking, lane departure warning, and rearview cameras, which can help prevent accidents. Make sure to let your insurance company know about these features, as they may qualify you for a discount.
Electric Vehicle Discounts: Some insurance companies offer discounts specifically for electric vehicles, so make sure to ask your insurance company if they offer any discounts for electric cars.
Low Mileage Discount: Some insurance companies will offer a discount for low mileage, which can be useful for electric cars since they have a limited range on a single charge, therefore, driven less than gas-powered cars.
Good Driver Discounts: Many insurance companies offer discounts for safe drivers, so be sure to let your insurance company know if you have a good driving record to qualify for a discount.
High Deductible: Choosing a higher deductible (the amount you pay out of pocket before your insurance kicks in) can also lower your premium.
Pay annually: Some insurance companies offer discounts for paying your premium annually rather than monthly.
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