Insuring an Electric Vehicle: What to Know

It’s undeniable that electric cars have become more of a fixture in the automotive market over the past several years. However, there’s still a ways to go before electric car sales catch up with their combustible cousins. By December 2018, electric vehicles only represented 1 out of every 250 motor vehicles on the road globally. Regardless, purchase incentives, better market prices, and long-term regulatory signals mean electric vehicles are gaining popularity.

Whether you’re looking into an electric vehicle for the environmental benefits or are simply tired of shelling out for gas, there’s a lot to consider with electric cars. For example, have you considered how an electric car might affect your insurance? Luckily, that’s what we’re here for. This is what you need to know about insuring an electric vehicle.

First, how are electric cars different from gas-powered vehicles?

Gas-powered vehicles rely on internal combustion engines, which release energy from a mixture of fuel (gasoline) and air. The energy from the combustion helps power the engine of the vehicle. A plug-in electric vehicle, on the other hand, uses rechargeable battery packs and an external electricity source for power. While electric cars used to only be able to go short distances on a single charge, many now have a range of 370 or more miles. Plus, they now cost significantly less, and offer lower operating/maintenance costs.

Insuring an electric car vs. a gas-powered car

Despite their differences, electric car insurance doesn’t really differ from conventional car insurance. Of course, the cost of your policy will always depend on a number of factors, including make, model, and driving record. Electric vehicles are more affordable than they used to be and you won’t be paying for gas, but they’re still typically a little more expensive than their gas counterparts. Plus, replacing a part might run you more than it would with a gas vehicle. Because of this, your insurance may be a little more expensive than it would be with a gas vehicle.

Will buying electric car insurance gouge my wallet?

Even though your policy might cost a little more money, there are still plenty of affordable options for electric car insurance. As we mentioned earlier, premiums depend on many factors, including make and model. If you buy a higher-end model electric vehicle like a Jaguar I-Pace, you’ll probably end up paying more than you would with, say, a Chevy Spark.

Where can I get electric car insurance?

Fortunately, insuring an electric car entails the same thing as any other policy. In fact, most major insurance companies write policies for electric vehicles. You can get a policy with insurers like Allstate, Farmers, Geico, Nationwide, Liberty Mutual, State Farm, and more. Of course, we always recommend you shop around to find the best possible rate—just be sure to ask about electric vehicle coverage.

Is it possible to save on insurance?

Short answer: Yes!

Long answer: You can save on electric vehicle insurance in the same way you would with gas vehicle insurance. Some general factors that lower your premiums are no accidents and traffic violations and a good credit score. When you’re ready to look at specific companies, always check for discount programs. Some providers may offer discounts to people who drive electric or hybrid cars. Depending on where you live, you may even qualify for a rebate or tax credit. So, it might take a little extra research, but you may save more in the end!