ev costs – The Plugin Report

Car insurance can be a guessing game when it comes to price. It gets even more confusing when insuring an electric car. Insurance has many factors that go into the cost, and a lot of research is recommended, regardless of the car. However, we have made it a little easier for you if you have an electric car! An electric car cost anywhere from $1,100 - $1,300 a year. That breaks down to just about $95 a month. This is typically more than a traditional car. This makes an electric vehicle cost about 1.1% - 1.4% more than a traditional combustion car, including hybrids. There are reasons an electric car costs more. We will cover those and answer some common questions, such as which brands are more budget-friendly and how to get a discount on car insurance. We will also explore the overall benefits of an electric vehicle that make them worth a slightly higher insurance payment. How Much Will It Cost Me to Insure My Electric Car? Well, the answer is a tad complicated, mainly because it depends on a few things. An electric car initially costs more, has more expensive parts, and there is a shortage of skilled technicians. Those few reasons, among several others, are a part of what makes electric car insurance more expensive than a fuel-powered car. There are many other factors that go into having a well-priced car insurance rate. Some of the following might fluctuate your monthly payment: Car make and modelAnnual mileageDriving recordHigh-risk violationsAgeMarital statusCredit historyState requirements Your electric car will ultimately cost more in insurance with or without a perfect record or any of the above-listed factors. Progressive shows that insurance for a 40-year-old man with a good driving record will still pay at least 20% more in car insurance for an electric car compared to a combustion engine car. However, don't let that deter you from purchasing an electric car. There are still plenty of ways to save on your insurance for your eco-friendly car. Why Does Car Insurance Cost More on an Electric Vehicle? It seems to be the trend that insurance companies think of electric cars to be more of a liability, hence why the insurance turns out to be more expensive. Electric cars are classified by insurance companies as more of a liability because they have a higher purchase price and repairs cost more. To begin with, the more expensive the car, the more likely it is to have higher-cost insurance. That is something most car buyers are aware of. Next, insurance companies do not like high risks, so if you purchase a $12,000 battery pack, you will be charged higher in premiums to offset future claims. Electric Cars Are More of a Risk for Insurance Companies Unfortunately, if an electric car is involved in a serious accident, it is likely that the insurance company will declare the car as totaled. Electric cars tend to be declared totaled more often because the battery packs are harder to repair when damaged in a collision. If there is any damage to the battery pack, the car can be totaled right away, solely because the vehicle would not be able to hold a charge. The rest of the car is fairly simple as electric cars have fewer moving parts like clutches, head gaskets, and engines. Due to the higher MSRP and the pricier car parts, car insurance is already marked higher with or without a clean driving record. Because of more expensive insurance, the overall cost sometimes evens out for an electric car in comparison to a gas-powered car. Discounts to Look for When Insuring an Electric Car There are plenty of auto insurance discounts available out there today. It is almost guaranteed that you will qualify for a discount with how many options there are. All you have to do to see if you qualify for discounts is apply for a quote. These are not electric car specific discounts. Some car insurance discounts include: Defensive driving course discount (10% - 15%)Low mileage and usage (up to 20%)Good student discount (5% - 25%)Away from home student (5% - 25%)Senior/Mature driver (5% - 10%)Multi-car discount (up to 25% combined)Paid in full reduction (5% - 10%)Military and federal employee (8% - 15%)New car (10%)Group affiliation (8%) We also recommend looking for bundles if you are a homeowner. There are many opportunities to find a company that allows you to make a once a month payment on all of your insured property. Tax Credits for Electric Vehicles Can Offset Costs Along with bundles, researching state and federal programs that offer tax credits and monthly rebates will assist in the annual insurance cost as well. Check the U.S. Department of Energy's website to learn more and check their Alternative Fuels Data Center to find state and federal incentives for non-gas vehicles. Obtaining a discount is quite simple to get started and can benefit you if you qualify. We suggest getting a quote today for your car, whether it's electric or gas! Do I Need Specialized Insurance for My Electric Car? You will not need special insurance to cover your electric vehicle. Just about all of the nationwide insurance companies that insure gas-powered cars will also cover your electric-powered car. In the past, it was not uncommon for some major insurance carriers not to insure some of the most expensive cars such as Tesla. In the birthing stage of Tesla, some insurance companies were more skeptical simply because of the extremely high value and limited repair dealerships. But electric vehicles are becoming more widespread and aren't solely high-end anymore. They are increasingly easier to insure because they are more popular. In fact, the Edison Electric Institute predicts the number of electric-powered vehicles on the road to exceed 18 million by 2030, accounting for 7% of all vehicles on the road in the U.S. As electric cars get more common on the road, consumers can expect rates to react accordingly. Insurance Implications to Explore for Electric Vehicles Most insurance companies have plans that imply that you will have full coverage. However, there are some risk factors to be concerned about, including: Fires - There are short circuits in electric vehicles that can spark a fire faster than a conventional car. Safety and Reliability - As most electric cars are tested to not be severely affected in crashes and accidents, if they are, it tends to be more expensive than a conventional car. Environmental Issues - As eco-friendly as the electric cars intend to be, the battery packs do take away from that. There is now a huge demand for cobalt and lithium batteries, making the recycling system not as effective.Cyber Concerns - Just like all other technology, an electric car is more susceptible to viruses, bugs, and glitches. It is also more prone to accessing data and software due to increased connectivity rates.Recalls - Because of the high demand for electric vehicles now, they are being made faster. The speed to market is allowing for more potential defects, which leads to possible recalls in certain makes and models. What is the Most Affordable Electric Car to Insure? Today, there are over 300 types of electric vehicles on the market. This is quite overwhelming and can be challenging to pick one that goes hand in hand with cost-efficient insurance. However, there are a select few brands that stick out to be more kind to the wallet. The Fiat 500e is the most affordable electric car to insure at roughly $98 per month. A close second is the Kia Soul EV, at an estimated $138 a month. Although these are two of the lowest-priced electric cars, they still tend to be more than the same car with an automatic transmission and fossil fuel. These are both great options if you are looking for eco-friendly and wallet-friendly vehicles. What is the Most Expensive Electric Car to Insure? Opposite of the Fiat and the Kia, Tesla is one of the most expensive vehicles to insure. Quotes for insuring a new Tesla (for an average cost among all models) are estimated at over $2,000 annually or over $160 per month. Teslas typically cost more in insurance primarily because of their high repair and maintenance costs. Because this is a luxury vehicle and only repaired at approved Tesla body shops, it becomes harder and riskier to insure, making it more expensive. Tesla began offering their own insurance for Tesla owners in late 2018 and claim to have rates at up to 20% less than that of competitors. (Source: CNBC and Tesla) How Insurance for a Hybrid Car Compares to Electric Cars Hybrid cars come in a fair bit less expensive than electric cars when it comes to insurance costs. Insurance is designed to cover the total value of the car; therefore, vehicles with higher market prices tend to have higher insurance rates. Similar to an electric car, hybrids have a higher MSRP due to the overall benefits of the vehicle. Several hybrids all come in around $1,000 annually for auto insurance, including: Toyota PriusChevy VoltFord C-Max Those are among the cheapest, fully covered on the market right now. A hybrid car is more of a two-for-one when it comes to being eco-minded as well as mindful of your budget. It allows you to get great gas mileage, all while paying a relatively affordable monthly insurance fee. These Are This Year's Best-Rated Auto Insurance Companies We all know that cars aren't inexpensive, so finding a good auto insurance company can definitely help the long term commitment. Most companies provide the same types of coverage for an electric car as they do for a conventional car, including: Liability CollisionComprehensiveMedical Some of the most highly-rated auto insurance companies for electric vehicles are: GeicoAllstateFarmersNationwideState FarmLiberty MutualUSAA A numerous number of companies also offer optional coverages that allow you to have more protection in your place. Some of those options include: Car rental coverageRoadside assistanceGlass coverageGap insurance As mentioned above, Tesla created its own Tesla Insurance to ensure that their cars would be covered by the appropriate coverage and liability. It offers the same coverage, including bodily injuries and property damage. However, it tends to be more expensive, averaging $2,000, and above annually. It is quite simple to get a quote from the above-listed companies that provide auto insurance. If you are interested in obtaining a new form of coverage, contact a company right away to find the best plan for you. What Are the Benefits of Driving an Electric Vehicle? The number one advertised reason most people lean towards purchasing an electric car is simply that it's better for the environment. Environmental impact. With no tailpipe emissions to pollute the air, this car allows you to feel comfortable about picking up speed on the freeway. On some cars, you can even watch the trees and leaves grow on your dashboard, giving you immediate satisfaction in helping save the planet. No need for gas and oil. You are no longer in need of gas and oil changes. While searching for charging stations can get somewhat challenging in certain parts of the nation, it does feel good to know that you aren't dependent on gas anymore. Less routine maintenance on complicated parts. Because there are minimal parts in an electric car, it is easier on the pocket, considering there is less to fix. Some electric cars even make it over 70,000 miles with the same brake pads! Long-range travel without a recharge. The battery packs are what keeps an electric vehicle powered up. Having a nice battery pack will allow you to travel up to 300 miles on one single charge. This is another one of the top benefits to an electric car, knowing that you can still make it a far distance off of once full charge battery. Ultimately, electric cars are continuing to evolve, just as the technology in today's world as well. This only means that the vehicles that run on electricity will continue to grow and will pollute way less down the road. These cars will continue to benefit the planet as well as allow you to save some green too. Is An Electric Car Worth the Additional Insurance Cost? Even though auto insurance for an electric car is more expensive than a fuel-powered car, there are many other ways to save. The additional expense can be offset by discounts and tax credits – and the positive impact on the environment is priceless. There is no doubt that electric vehicles are going to continue to grow and become more and more popular. Electric cars have plenty of benefits that will help the Earth and your pocket. Like the cars themselves, auto insurance for electric cars is evolving and getting more cost-efficient. We suggest doing your research and talking to top insurance companies to see what quote matches your budget. Sourced Used: Digital Insurance Bankrate Farmers Insurance Allstate Capital One