There are plenty of reasons to switch to an electric car. But if you’re worried about insurance for electric cars, don’t be: electric vehicles have been in the market long enough for the insurance on electric cars to become much more available and refined.
We’ll dive into everything you need to know about insurance for electric cars, so that there’s no surprise when it comes time to get your electric auto insurance quote.
Free Car Insurance Comparison - Save up to 30%
No junk mail. No spam calls. Free quotes.
No Signup required
The popularity of electric vehicles is on the rise, and it’s not slowing down anytime soon. In fact, over 10 million electric vehicles were on the road globally in 2020, which is five times as many as in 2016. And with government rebates on electric vehicles helping with the purchase price, the decision to go electric is an easy one for many drivers.
Keep in mind that while electric vehicles are popular because they aren’t reliant on fossil fuels, they aren’t completely sustainable; the lithium batteries they use aren’t renewable. As a consumer, it’s important that you know the facts.
If you’ve made the choice to go battery operated, you’ll want to consider car insurance for electric vehicles and what that can mean for your wallet.
Electric vehicles are still typically more expensive than regular cars, although that should continue to go down as electric vehicles are gaining more traction in the market. But in the meantime, this does make electric vehicles more expensive to insure, both because of the higher purchase price and repair costs.
If you submit a claim on your electric vehicle, insurers know they’re going to have to pay more to replace or fix that vehicle than they would for non-electric vehicles. As a result, your premiums will be higher to reflect that higher financial risk.
The good news is that electric vehicles and their insurance are already more affordable than they were when the vehicles were first introduced, and this will continue to get better over the coming years.
Free Car Insurance Comparison - Save up to 30%
No junk mail. No spam calls. Free quotes.
No Signup required
Your electric auto insurance quote will depend on a variety of factors. Just like with insurance for standard vehicles, the rate you get will depend on everything from your age, gender, vehicle make and model, driving history, and more. It’ll also vary across providers, so it’s important to compare electric car insurance before signing on the dotted line.
The fact of the matter is that while you’ll be saving at the gas pump, you’re going to pay more on insurance on electric cars: it can be as much as double the cost of regular auto insurance.
But that doesn’t mean you can’t find savings. Ask insurance providers for discounts, such as for bundling insurance policies and being a good driver, and take advantage of every government rebate you qualify for.
Insurance for electric cars is much easier to get than it used to be. In fact, most insurance providers offer some form of car insurance for electric vehicles.
The coverage is the same as you’ll find on standard auto insurance policies, including comprehensive, collision, liability, and bodily injury. You can pick and choose your coverage, just like you would with any other policy.
There are even some insurance providers that offer discounts specifically for electric vehicles, although these can be harder to find.
Free Car Insurance Comparison - Save up to 30%
No junk mail. No spam calls. Free quotes.
No Signup required
Not all insurance for electric vehicles is made equal. Your best bet will be to shop around for coverage, request multiple quotes, and compare policies to find the best insurance for electric cars.
Tesla is one of the predominant electric vehicle manufacturers in the market and they’ve started offering their own insurance on electric cars, called Tesla Insurance. While only available in a few U.S. states, for now, Tesla Insurance has plans to expand nationally. Tesla Insurance is similar to insurance for other electric vehicles and rates depend on your unique profile, including driver history, age, vehicle model, and more.
So, is insurance higher for electric cars? Yes, but you can find savings. Plus, as electric vehicles take over more and more of the market share, the purchase price and cost of repairs will become more competitive and, in turn, insurance costs will go down.
The decision to go electric is a big one, but don’t let insurance for electric cars deter you: you can find affordable insurance for electric vehicles and get the coverage you need, and it’ll keep getting easier.
Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.
