Electric Car Insurance: What You Need To Know


WRITTEN BY: Julia Matseikovich

UPDATED: JANUARY 24, 2023 | 2 MIN READ

There are many great reasons to get an electric vehicle, such as saving on fuel, convenience, and saving the environment. Before you decide on getting an electric car, you should look at the big picture, including how insuring an electric vehicle affects you. You want to know the best ways to insure an electric vehicle with the coverage you need at the correct cost. We’ll walk you through everything you need about electric car insurance.

Electric Car Insurance vs. Conventional Car Insurance

You’ll likely pay more for an electric vehicle than conventional insurance. This is because electric cars cost a lot more than traditional vehicles because of the electric motor. If an electric vehicle is a total loss, there could be higher repair costs or the whole car needing to be replaced. Insurers know that even in a minor accident, the damage to the battery pack of an electric vehicle costs over $15,000 to replace.

Electric Car Insurance Costs

The cost of your electric car insurance depends on a lot of variables. On average electric car insurance is as high as $4,683 yearly and as low as $1,776 annually.

Common electric car insurance cost factors include:

  • How much coverage do you need
  • Your driving history, including at-fault accidents and traffic violations
  • Driving experience
  • Your claims history
  • Your credit score
  • Where you live
  • Your car insurance deductible amount

Who Provides Electric Car Insurance?

Getting electric car insurance isn’t different from getting conventional car insurance. The policies typically cover the same things, such as bodily injury, liability, collision, and comprehensive coverage. There are plenty of national and regional auto insurance companies that offer electric vehicle coverage, including:

Not all insurers are covering electric vehicles, but most are trying to get in the game. It’s hard to find discounts for your electric vehicle, so your savings come solely from the gas pump. Electric car insurance companies aren’t offering any discounts for electric vehicles.

Cheapest Electric Car Insurance

Electric vehicles do cost more to insure than gas-powered vehicles. There are still options for cheap car insurance with various car insurers. Below are a few examples of great rates.

Electric Vehicle Yearly Premium

Nissan Leaf $1,804

Toyota Prius $1,740

Hyundai Ioniq $2,402

Tesla Model 3 $2,612

Tesla insurance

Insurance is available for Tesla owners directly through the Telsa mobile app. It offers mandatory coverage for your vehicle, including collision, comprehensive, property damage liability, and bodily injury.

Tesla insurance offers real-time driving habits and behaviors to rate a driver’s car insurance policy, and it’s done right inside the car. Tesla Insurance is only available in Colorado, Arizona, Nevada, Illinois, Oregon, Texas, Ohio, and Virginia.

How to Save on Electric Car Insurance

If you have an electric vehicle or are considering purchasing one, here are some ways you save on electric car insurance rates.

  • Shop around: It’s always good practice to get different quotes to ensure you get the best possible deal.
  • Ask for discounts: Most insurance companies don’t offer discounts for electric vehicles, but there are other ways you save, such as bundling your auto and home insurance, safe drivers, and good students.
  • Try a pay-per-mile plan: If your car is only used for short trips, consider a pay-per-mile insurance plan to offset costs.
  • Tax credits: The significant part of an electric vehicle is the tax credits available. You can take advantage of local, federal, and state-level tax credits. For example, a California Clean Vehicle Rebate Program offers up to $4,500 rebates if you purchase a specific electric vehicle. The federal government provides $7,500 in tax credits.
  • File claims wisely: If you file a claim, your insurer raises your rates. These claims also stay active on your account for three years. To avoid this, you must ensure you only file a claim if necessary.

What are the Benefits of Driving an Electric Vehicle?

Owning an electric or hybrid vehicle has plenty of benefits, including:

  • Saves the Environment: There are no tailpipe emissions with an electric car. This helps to eliminate your transportation carbon footprint. Hybrid vehicles utilize battery energy and gas if you need more time to commit to an all-electric vehicle.
  • Energy Independence: You need to rely on charging stations to recharge your car’s battery, but you no longer need to visit gas stations. There is also the option of getting a home charging station that plugs right into your vehicle.
  • Reduces Fuel Costs: Gasoline or diesel typically costs more than charging your vehicle at the charging station.
  • Extended Battery Life: New technology has extended the life of some batteries up to 15 years.
  • Reduce Inhaled Emissions: Car emissions contain harmful carcinogens, and with an electric vehicle, you avoid breathing in those emissions.
  • Reduce Maintenance Expenses: With an electric vehicle, there is specific maintenance you no longer have to worry about, such as oil changes and replacing gaskets, fan belts, and radiator hoses. Some electric vehicles drive 70,000 miles on the original brake pads.

FAQs

Is an electric car more expensive to insure?

Yes, because repairing or replacing an electric vehicle is expensive. Replacement parts are more costly on an electric car than on a conventional one.

Why is insurance for electric cars so high?

Electric vehicles are more expensive to insure because they’re more costly to repair and purchase. However, you save enough on gas and tax incentives to cover the policy’s extra cost.

Are electric cars better on insurance?

No, a gas-powered vehicle is better on insurance than an electric one.

What is the difference between an electric car and a gas-powered car?

A gas-powered vehicle has hundreds of moving parts, while an electric car just has one, the motor.

What are the benefits of electric car insurance?

The benefits of having electric car insurance are that your vehicle is protected in the case of an accident. Electric cars are already costly if you have to replace them with a new car.

What are some of the benefits of an electric car?

Electric vehicles have many benefits for car owners, such as a better driving experience, a cleaner environment, no congestion charge, lower running costs, free parking, and reduced noise pollution.

How much does electric car insurance cost?

On average electric car insurance is as high as $4,683 yearly and as low as $1,776 annually.

Is it necessary to buy special insurance for electric cars?

No. Electric or hybrid vehicles don’t require special car insurance.

How do you insure an electric car?

Insuring an electric vehicle is as easy as going online and filling out a form. Your questions are answered, and you obtain a quote in one spot.

How to Get Electric Car Insurance

It costs more to insure an electric vehicle than a gas-powered car, but not for the reasons you think. Electric vehicles cost more to purchase, so they cost more to repair and replace. It’s essential to compare car insurance quotes, and it’s possible to do that online. Simply fill out our online rate form to get rates from the top insurers and speak to a licensed auto insurance agent that can answer all your questions.