All You Need To Know About Insuring your EV with Best Electric Car Insurance

All You Need To Know About Insuring your EV with Best Electric Car Insurance

Electric cars are a quick way to save on gas money. The average annual cost of running a gas-powered car is $1,117. In contrast, an electric vehicle only costs $456 per year, which is q significant savings on the money and an enormous contribution to the green revolution.

The automotive industry throughout the world is rapidly changing towards conversion from conventional ICE-powered vehicles to electric vehicles. People are more and more buying electric cars than traditional fuel-powered cars. It’s essential to select the best electric car insurance that gives you comprehensive coverage and comes under a budget-friendly tag.

Also Read : Piaggio One Electric Scooter Review and Price – Possibly a Game Changer EV

Fuel savings and being more environmentally friendly are just two reasons consumers choose to purchase electric vehicles over their gas- and diesel-fueled counterparts.

best electric car insurance

While the initial price tag of an electric car is greater than that of a fuel-powered one, the operating costs are lower, so you can expect it to be cheaper to drive an electric vehicle over time. And with the limited pollution these cars produce, you’ll be doing your part to be more environmentally friendly.

Benefits of Buying An Electric Vehicle

Many people are unaware that every electric car is also a high-performance vehicle, making them surprisingly enjoyable to drive. An electric vehicle is more smooth in comparison to a gasoline-powered vehicle. The engine ( in this case, the electric motor) is incredibly peaceful both inside and out.

One of the most significant advantages of modern electric vehicles is that they consume electricity more efficiently than traditional petrol or gasoline cars. When you fully charge the battery of your EV, almost 59-62% of the battery energy is directly transmitted to kinetic energy for moving the wheels.

In the case of gasoline or petrol-powered autos, only about 17-21 per cent of the energy in the gas is used to drive the vehicle. Also, the battery range of electric vehicles is constantly increasing with the implementation of advanced technology and continuous research and development by all the ev car makers.

Also Read : Here’s What All You Want to Know About the $400 Car Insurance Refund Michigan

The new Chevrolet Bolt, the Kia Niro EV, and the Hyundai Kona Electric offer a 200-250 miles range on a single charge. If we talk about the high end, luxury vehicles like those from Tesla, are currently come with a 300-400 miles range on a single charge.

As the world is rapidly moving towards this EV transformation, electric cars are finally here to stay and gain popularity. They look sleek and stylish, but they have several benefits over the traditional car, such as reducing the carbon footprint and saving you more money on gas. These are just a few among many reasons why you should go electric.

Insurance on Electric Car vs Conventional Car Insurance

Electric car insurance typically costs more than conventional car insurance, and the higher cost of purchasing an electric car is the main reason behind this. Also, electric vehicles often have higher repair expenses as the technology behind th EV’s far more advanced than fuel cars.

For example, the insurance companies are well aware that they have to bear higher costs in repairing or replacing electric vehicle parts than replacing a conventional vehicle. Similarly, if even a slight accident damages an electric vehicle’s battery pack, the cost may range upto $15,000.

What is the Cost Proportion of an Electric Car Insurance?

You not just need to purchase only a policy for your electric car. Most drivers get into severe accidents within the first three years. The best way to be covered if any of those incidents strikes is by purchasing a good electric car insurance that both provide protection against potentially dangerous situations and protect your wallet from unforeseen costs.

Although electric vehicles are usually more expensive than gas-powered equivalents, we at Motogear evaluated premiums for many makes and models using data given by Quadrant Information Services to provide insight into how expenses vary with insuring different electric vehicles.

Electric vehicle NameAvg. 6 Months PremiumAvg. Annual Premium
Tesla Model S$1901$3802
Tesla Model X$1662$3324
Audi E-Tron$1260$2520
Ford Focus$817$1633
Ford Fusion$837$1674
Fiat 500c$732$1463
Hyundai Ioniq$891$1782
Smart EQ fortwo prime$779$1557
Smart EQ fortwo pure$747$1494
Tesla Model 3$1142$2283
Toyota Prius$870$1740

The above rates are average rates, and the exact premium amount will depend on many other rating factors.

The Top 7 Electric Car Insurance Providers

Purchasing the best electric car insurance or insuring an electric car is similar to insuring a conventional car policy which includes similar coverage benefits like liability, bodily injury, collision, damage caused by accident, and other comprehensive coverages. Here are the list of major insurance providers

According to research by IEA, the Electric Vehicle market would grow at a CAGR of roughly 24.5 percent between 2022 and 2028. According to primary research, the Electric Vehicle industry was valued at around USD 185 billion in 2021 and is predicted to exceed USD 980 billion by 2028.

Also Read : Why You Must Ride Fatte Bikes to Experience Brand New World of Bike travel

Several major auto insurance giants started toeing into the electric/hybrid vehicle market to tap this growing market. Though you will hardly get any discounts on electric vehicle insurance, none of the players are offering discounts for EV drivers. But, the actual savings for purchasing a electric car will come from zero fuel consumption, and you will also get some tax incentives.

Wait! There is some Good News. The two large carriers, Travelers and Liberty Mutual, are offering exclusive discounts for electric and hybrid car owners.

Tesla Insurance

The Premium electric car manufacturer Tesla started Tesla Insurance in the year 2019. So far, Tesla Insurance is only available in the states like Arizona, California, Illinois, Ohio, and Texas for all Tesla models ( Model 3, Model S, Model X, Model Y, and Roadster). Tesla also has plans to extend its service across the U.S.

Tesla claims to have complete knowledge of its vehicle features and technology. They further leverage and develop the insurance business for which they will be the best fit for their customers.

Tesla Insurance provides standard coverage as most other auto insurance companies, such as bodily injury and property damage liability, collision, and comprehensive insurance. They also offer relatively new and advanced insurance coverage, an Autonomous Vehicle Protection Package. The package includes:

  • Cyber identity fraud expenses.
  • Electronic key replacement.
  • Autonomous vehicle owner liability.
  • Wall charger coverages. 

Although some of the insurance players other than Tesla are not providing autonomous vehicle protection policies, according to a report by the Stevens Institute of Technology, the Autonomous insurance market can generate 81billion opportunities by the year 2025.

Currently, the Tesla owners can generate an online quote by logging into their Tesla account. Once their vehicle’s VIN is available in their Tesla Account, they get an insurance quote.

The states like Arizona, Illinois, Ohio, and Texas, Tesla is offering specialized discounts on insurance premiums to the drivers based on their safe driving habits. Though it’s not much worth it as the premium is calculated based on your safety score, the premium increases when it goes downs.

Also Read : Missed Denver ebike rebate Program? Don’t Worry likely to have another chance Shortly

Tesla also offers multipolicy discounts. According to company claims, Tesla offers 20-30% lower premium rates than its competitors. Though the premium rates vary from person to person, it is based on multiple factors like driver’s location, age, and driving history.

Tesla evaluates the premium based on the actual driving using particular features within the vehicle. The driver has to make monthly payments depending on his driving behavior rather than the typical characteristics utilized by other insurance carriers such as credit, age, gender, claim history and driving records.

best electric car insurance

How to Spend lower on Electric Vehicle Insurance

If you decide to purchase an electric car, saving some money is as simple as you have earlier done on your conventional vehicles. Just follow the below steps to make more savings on your best electric car insurance.

  1. Avoid accidents and traffic violations.
  2. Check for quotes from multiple insurance providers
  3. Switching providers will also result in insurance savings

Apart from all these steps, the insurance companies also offer discounts on purchasing multiple policies, purchasing more than one vehicle, remaining claims free, and taking a defensive driving course.

Several states in the U.S offer rebates or tax credits for having an electric vehicle. For example, in California, the California Clean Vehicle Rebate Project provides rebates upto $4000 for those who buy an electric vehicle. The Federal Government also offers tax credits up to $7,500 for purchasing specific models and makes of electric cars and SUVs.

In Conclusion

All signs point to the electric car market starting to take off in a big way. It’s been suggested that they are replacing conventional vehicles, being quieter, having cleaner emissions, and none of the toxic exhaust fumes usually associated with cars. Electric cars typically require less maintenance than standard motorized ones and can go great miles without looking for any significant service requirements.

When determining if you’re getting the best deal, it always helps to ask around and do a little research. So why not consider shopping around for the best electric car insurance.

Get an idea of what other models or makers are charging. Determine if one of these would be a better fit for your budget. Kudos to you if you prefer researching.

Ask insurance agents about their specific discount programs for electric vehicles – who knows, perhaps they can save you a pretty penny on your monthly premium. Now that’s sure to get your motor running.

Frequently Asked Questions

Is it more expensive to insure an electric vehicle?

In general, electric vehicles are more expensive to insure than conventional automobiles. Because electric cars are more costly to buy and service, insurance companies charge their customers more for coverage. However, the savings on petrol and tax breaks may more than offset the higher cost of your policy.

Do insurance companies provide discounts for electric vehicles?

While many insurance companies have yet to offer discounts for eco-friendly automobiles, Liberty Mutual and Travelers provide discounts to customers who opt for a hybrid or electric vehicles.

How can I locate cheapest electric car insurance  for my electric vehicle?

Always get many estimates from reliable electric car insurers, and compare them to find the best coverage.

What is Bima Sugam Portal? Learn in detail about Bima Sugam IRDA New Change

What is Bima Sugam Portal? Learn in detail about Bima Sugam IRDA New Change The Insurance sector will watch one of the most significant reforms through a two-letter word, ‘Bima Sugam Portal.’ According to many Insurance experts, the Bima Sugam Portal can be a game changer in the Insurance sector as this would be a…

Continue Reading What is Bima Sugam Portal? Learn in detail about Bima Sugam IRDA New Change

Insurance on antique cars: Top 7 Companies you can consider for your vintage car

Insurance on antique cars: Top 7 Companies you can consider for your vintage car Hi friends, Prasun and today we will discuss why you need specialized classic car insurance instead of regular Insurance. The conventional car insurance policy is unsuitable for your vintage car if it is older than 20 years. Classic car insurance is…

Continue Reading Insurance on antique cars: Top 7 Companies you can consider for your vintage car

Prasun Dey

Myself Prasun Dey , a Passionate Blogger , Affiliate Marketer & Blog Content Writer. I maintain concise & error-free writing as a blog writer. I can take up my creative ideas with any of the topics to write a new article that will add value to my readers.

Leave a Comment