Are Electric Cars Cheaper?

The popularity of electric cars are on the rise. With the main reason being to help the environment, some people make the switch to electric cars from gas powered cars because of the cost savings. People are under the assumption that the savings in gas and also the tax benefits can save them money. One factor that is often overlooked is the cost of insuring an electric car. I decided to look into this matter to see if there really is cost savings when switching to an electric vehicle. Is the insurance for electric cars cheaper?

Insurance Premiums

In my research, it is a given that insurance premiums for electric cars are higher than gas cars. Some insurance companies can have higher premiums for an electric car as compared to their gas counterpart. Car insurance quotes for the electric cars were 21% higher, on average, than quotes for the gas cars. This is quite the difference. So the only question is why is this so? The simple answer is the cost of the car itself. It is a common fact that premiums go up for riskier drivers. With electric cars it does not make a driver risker in the insurance company’s eyes, but it does raise the red flag of liability. Electric cars are expensive. They are expensive to buy, and the parts that make up the cars are expensive to replace as well. Insurance companies see electric car drivers as liabilities because if they were to damage their car, they have to put up the big bucks to fix it. This in fact makes them less desirable than a cheaper made gas car. Therefor the driver is forced to bear the cost of that liability in their premiums. With that being said, Electric and hybrid cars often require less servicing than their gas cousins. But, when something goes wrong or if you get into an accident, the repair costs are higher because you need specialty mechanics to fix things such as damage to batteries or to electric control panels. Despite this, analysts say that these costly repairs occur less frequently than they do with gas vehicles.Electric car work needs to be done by a trained electric car mechanic which is not as common as the regular gas powered car mechanic. This is another hurdle for electric car drivers.

Shop Around

Even though it is a given that your premium may be higher, it is important to shop around. Look at different insurance companies to see who can give you the best deal out there in the electric car world. Different companies offer different coverage for different prices so it pays to do your research.

There are pros and cons to insuring a hybrid or electric vehicle, but when it comes to lowering your carbon footprint, it’s priceless.

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