Over the last several years, the popularity of electric vehicles has steadily increased, prompting many EV owners to look for cost-effective and comprehensive electric car insurance coverage options. EV insurance differs from that of conventional, non-electric cars. Due to the higher upfront costs for electric cars, their insurance premiums can also be higher. So, it is important to understand the various coverage options and factors that affect electric vehicle insurance rates to make informed choices.
1. Factors that affect the electric vehicle insurance rates
The type of electric vehicle is a key factor affecting car insurance rates. Insurance companies also consider several other aspects, including one’s driving record, amount of coverage required, credit score, and discounts received during the purchase of the EV. While most insurance providers consider these common factors, each insurer has its own way of prioritizing them. This will directly affect the insurance rates.
2. EV insurance costs across different providers
On average, electric vehicle insurance rates are around 8% more than that of gas-powered cars. For liability coverage, electric car owners are expected to pay around $114 per month and about $227 per month for full coverage price. Meanwhile, the monthly payouts for non-electric vehicles are around $106 and $210, respectively.
The main reason why the insurance cost of EVs is on the higher end is due to their high initial price. Besides, there is specialized repair and maintenance work involved, which is more expensive than that of conventional cars. When shopping for EV insurance providers, it can be helpful to do an EV insurance cost comparison. Some providers known to offer good competitive rates include USAA, State Farm, GEICO, Nationwide, The General, Farmers, Liberty Mutual, and Allstate. In most cases, the rates will depend on several factors.
3. EV insurance rates based on make and model
Besides the insurance provider, the model and make of the EV can also influence coverage costs. For instance, the cheapest insurance rates have been known to be charged for models like the Hyundai Ioniq 5 and Nissan Leaf. Meanwhile, cars like the Tesla Model 3 have relatively higher insurance rates and premiums because of the higher market value, luxury status, high-end features, and repair cost. Meanwhile, several electric cars, such as the Kia EV6 and Chevrolet Bolt, fall somewhere in the mid-range due to their moderate maintenance expenses and insurance rates.
4. Types of coverage options for EVs
Electric car owners can choose from various insurance coverage options to safeguard their automobiles against unforeseen expenses. It is important to remember that each option comes with its own set of EV insurance policy features.
- Liability insurance: In most states, this is a mandatory insurance coverage that offers protection against accidents that have caused damage to another person’s property or resulted in injuries. The coverage usually includes the costs of repairs, legal fees, and personal care bills.
- Collision insurance: This type of insurance covers electric vehicle repairs if one is involved in an accident, regardless of fault. Most electric vehicle insurance requirements have this coverage as an add-on. This can be valuable as EV repairs tend to be expensive.
- Comprehensive insurance: For non-collision incidents like theft, vandalism, or damage caused by natural disasters, a top electric car insurance tip is to opt for comprehensive coverage, which offers significant protection to vehicle owners.
- Personal care payments: Most best insurance plans for electric cars also include coverage for personal care-related expenses for the driver as well as passengers in case of an accident. But, it is important to note that this coverage is typically optional and unavailable in certain states.
- Roadside assistance: This type of insurance is required to get coverage for emergency assistance during situations like battery depletion or vehicle breakdown. Some insurance providers have emergency charging services to get the car back on the road. This is generally an add-on that can cost between $2 and $5 every month.
- Uninsured/underinsured motorists: This type of insurance gives extra protection in cases of accidents involving drivers who do not have sufficient coverage to pay for damages or do not have any insurance at all.
- Rideshare insurance: This type of insurance is useful for those who use their electric vehicle for ridesharing services such as Lyft or Uber. This insurance provides extra coverage and protection since it closes the gap between personal auto insurance and the insurance coverage offered by the rideshare company.
5. Savings on EV insurance
A good way to save on costs is to bundle the car insurance. Many top providers offer EV insurance discounts when the car insurance is bundled with renters or home policy. Vehicle owners can also avail themselves of discounts through providers that offer slashed rates for eco-friendly electric vehicles. Alternatively, increasing the comprehensive and collision deductibles can also help lower the car insurance rate. But, it is important to note that this will lead to high out-of-pocket expenses in case of a claim. Some providers also offer discounts to military personnel, farmers, and educators, which can significantly reduce electric car insurance costs. Lastly, maintaining a safe driving record can also help one qualify for considerable savings on EV insurance.