The price a consumer pays for their car insurance is largely based on the type of vehicle they plan to insure. As a result, it should not come as a surprise that insuring an electric car might cause somewhat of a cost variance. Just how much of this variance you should expect can vary, but here are some of the factors you should keep in mind.
Cost to Replace
One factor that is always considered when assessing the cost to insure an electric vehicle is the cost to replace the vehicle. In the event of an accident that causes major vehicle damage, it may be more cost-effective for the insurance company to replace your vehicle rather than to repair it. Compared to similar gas-powered options, the cost of electric vehicles is often slightly higher, which means that the insurance company would also face a greater expense.
Although it is becoming increasingly more common to spot an electric vehicle or two on the road, these vehicles are still not as popular as gas-powered vehicles. Consequently, it is sometimes more of a challenge to find replacement parts for these vehicles. A lack of availability can often translate into higher costs, and as such, the insurance company may charge these drivers a higher premium. However, there is no guarantee that this will be the case.
Keep in mind that the type of vehicle that you want to insure will largely impact the cost of your insurance. However, if a driver plans to insure an electric vehicle and has a checkered driving record, they can expect to pay a higher premium. Insurance companies will check everything from your accident record to your history of speeding tickets to assess your driving record. If you have a good record, you may be able to offset some of the added costs.
Another option you can rely on to manage any increase in cost you experience from insuring an electric vehicle is to research any discount options. Insurance companies have all sorts of unadvertised discounts, ranging from discounts for members of certain organizations, multi-policy customers, and even discounts for paying your premium upfront. There is no harm in asking for discounts; all the insurance company can say is no.
To ensure you get the most accurate information about the cost to insure your vehicle, it is best to speak directly with an insurance professional.