How Does an Electric Vehicle Impact Your Insurance Rates?

Written By Charlotte Insurance on September 16, 2021. It has 0 comments.

an electric vehicle being charged

You want to drive an electric vehicle because you care about the environment. These days, electric models can drive further and are more affordable than in the past. Plus, charging stations are popping up all over the place. For those who want to decrease dependence on fossil fuels and get away from combustion engines, electric vehicles are a great option.

But there’s still the practical side of things to consider. How will an electric vehicle impact your auto insurance rates? Here’s what you need to know.

Auto Insurance Rate Changes

The reality is that the cost to insure an electric vehicle is often higher than a standard vehicle. It’s not because electric cars (or their drivers) are riskier. It has everything to do with the cost to repair or replace them. Electric vehicles tend to sustain damage more easily than combustion engine models. If a “minor” accident damages the battery pack, that could easily be a $15,000 (or more!) repair.

For insurance companies, it costs more to insure an electric vehicle because it costs more to repair damage, and they’re more likely to be damaged in an accident. So yes, your rates may go up when you switch from combustion engine to electric.

How Insurance Rates are Calculated

The cost to repair or replace your vehicle isn’t the only consideration for your insurance rates, though. A lot of factors go into determining what you’ll pay, some of which you can control. Other factors that determine your premiums includes:

  • Where you park: on the street, in a driveway, in your garage
  • How many miles you drive each year
  • Your driving history: accidents, tickets, etc.
  • Your age: the older you are, the less you tend to pay
  • Safety features installed in your vehicle
  • The type of coverage you select, as well as the deductible
  • Any discounts you’re eligible to receive

How to Save on Your Auto Insurance

To save on your auto insurance for your electric vehicle, it’s not that much different than other vehicles with one exception.

  1. Avoid accidents and tickets to keep your insurance rates from increasing. Drive safely, follow the rules, and pay attention to the road.
  2. Get quotes from multiple insurance providers to make sure you get the best price. An independent insurance agency like ours can help you with this.
  3. Bundle policies where possible to take advantage of any available discounts.
  4. Search for available rebates or tax credits for electric vehicles. If you’re eligible, this will help offset the increased costs of owning an electric car.

One thing to remember, if it helps, is that by driving an electric car, you’re no longer spending a lot of money on gas. This savings may help reduce the impact of any increase in your auto insurance.

Whether you’re driving a standard or an electric vehicle, Charlotte Insurance can help you find the best coverage at the best rate for your auto insurance. Contact us today for a free quote!

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