Insurers take into account a variety of factors when calculating your car's insurance rate, such as your driving record, credit score, age, gender, and other elements. However, these factors remain the same when you switch to an electric car. Generally, you will pay more to insure an electric vehicle than a conventional car, but not always. This is mainly due to the higher MSRP of electric vehicles and the fact that they usually have higher repair costs, particularly those with expensive technological features.
Repairing these vehicles can also be more expensive since not all mechanics have the skills needed to work on electric vehicles. On average, electric vehicles have significantly higher insurance costs than gas-powered cars. This difference is most evident when you compare the insurance costs of electric vehicles and their combustion counterparts. MoneyGeek found that, on average, electric car insurance tends to cost 15% more than insurance for a comparable fuel model. If an electrical problem with the home's wiring causes the charger to catch fire, homeowners insurance will likely cover it.
Otherwise, full car coverage is needed. According to State Farm, “there is no need for additional coverage because there is a high-voltage charger in the home.” Because electric vehicles are more expensive both to buy and repair, insurance providers can charge their drivers more for coverage. They focus on the points that consumers are most concerned about: price, customer service, policy features and savings opportunities so you can be sure which provider is right for you. Electric vehicle owners who want to install a 240-volt electrical outlet or wired charging station at home should talk to a trusted local electrician who is trained, licensed, and insured to install a NEMA 14-50 outlet. It offers the same standard coverage options you'd expect from a domestic airline, plus a handful of promotions that vary by state.
According to Jenny Naughton, executive vice president and risk advisor at Chubb, as more and more car buyers are taking their vehicles out of the parking lot, it is important that they understand the different risks that these vehicles pose to their homes and properties. When insurance companies set their rates, they analyze claims that have been paid for similar cars among other things and set their prices. To mitigate this risk, many electric vehicle manufacturers include lithium-ion batteries and place them inside the vehicle where they are least susceptible to damage, making it difficult for electric vehicle owners to see if their batteries are working properly. An insurance company spokesperson says: “For State Farm customers, there's no difference between insuring an electric or hybrid car compared to insuring one that runs on gas. As long as the electric car performs well in crash tests, liability coverage should remain competitive with vehicles that run on gasoline at similar prices. However, other factors may be more important to others such as the potential savings that a property can bring in the long term like fewer trips to the mechanic, reduced gas costs, government incentives and a lower carbon footprint.
The cheapest electric car to insure is the Hyundai Kona crossover SUV and the most expensive is the Porsche Taycan, an electric sports car. In general, insurance for electric vehicles is not based on the same principle as traditional cars explains Miranda Yan co-founder of VinPit a car data company that helps users search for vehicle information or history. Although having an electric vehicle has many advantages such as the absence of gas costs and a lower environmental impact the biggest disadvantage occurs when it needs to be repaired even because of damage caused by a car accident. For example charging an electric car typically costs much less than filling a car with gas. If you decide to buy an electric vehicle you may be able to save on insurance in the same way that conventional car owners do.
For cars that come in electric and gasoline versions of the same model the electric Chevy Spark had the closest auto insurance rates to those of its ICE counterpart probably because it had a lower MSRP than most electric vehicles.