Are You Looking for Information About Electric Car Insurance? Check Out These FAQs First

Are you considering buying an electric vehicle to “go green”? If so, you need to know that electric vehicle insurance may be a little more expensive than insurance for gas-powered cars. But, don’t be discouraged. The overall tax incentives and fuel savings will help offset the extra insurance costs.  

Owning an electric vehicle is a great way to do your part in helping the environment. In return, you’ll enjoy lower fuel costs and the responsiveness, quietness, and comfort provided by an electric vehicle. Keeping those things in mind, your next step is to learn all you can about EV insurance. 

Frequently Asked Questions About Electric Vehicle Insurance

After careful consideration, you selected the EV that best suits your needs. Now, you must choose the best insurance coverage. That being the case, these frequently asked questions will be helpful in your search for the right electric car insurance company.

#1. How Much Does Electric Vehicle Insurance Cost?

Electric Vehicle InsuranceTypically, you will pay more for electric vehicle insurance than for a conventional vehicle. This is primarily due to EVs having higher repair or replacement costs. Although EVs have fewer moving parts, the parts they do have are pricey. Even a small accident can be costly, especially if the battery is damaged. On the plus side, EVs require less regular maintenance than conventional vehicles. 

Also adding to the higher cost of EV insurance is the shortage of qualified repair shops and technicians. Therefore, the shops can charge more for repairs due to the specialized training they offer. This situation contributes to higher insurance rates for EVs. 

To give you an idea of electric car insurance premiums, the average annual cost for full coverage by model are as follows:

  • Porsche Taycan – $4,725
  • Tesla Model 3 – $3,278
  • Tesla Model Y – $3,215
  • Chevy Bolt – $2,401
  • Nissan Leaf – $2,299
  • Nissan Kona – $2,152

Of course, these rates will vary by insurance company. So, get several quotes and compare. Overall, EV insurance is about 25% more expensive than gas-engine vehicles. Keep in mind that over the long term, EV owners save about $3,000 to $10,500 in fuel costs during the vehicle’s lifetime. Not to mention the tax credits that can be as much as $7,500, depending on the cost of your vehicle, your income, and whether the car was made in the United States.

The good news is that as EVs become more commonplace and more repair shops pop up, the cost to fix electric vehicles will go down.

When shopping for electric vehicle insurance, ask the agent if they offer discounts specifically for electric cars.

#2. Are Coverages Different for Electric Vehicles?

The answer to this question is “no.” Insuring an electric vehicle is no different than conventional vehicles when it comes to coverage limits. Policies for EVs feature the same limits of liability, bodily injury, comprehensive, and collision coverages as for gas-powered cars. 

#3. Does an Electric Vehicle Insurance Cover Charging Equipment?

Generally, your insurance policy’s comprehensive and collision coverages may include equipment that is part of your vehicle’s normal use such as charging equipment. Check with your agent to make sure charging equipment is covered by your policy.

#4. What Happens If My Battery Goes Dead On the Road?

It can happen. You failed to fully charge the battery and can’t find a charging station on your route. If you run into this type of situation, the roadside assistance coverage on your policy can help. It could pay for towing to the nearest charging station. Or, the roadside service provider may have a portable EV charger on board to help you get back on the road. Ask your agent if this coverage is included in your policy.

#5. Choosing an EV Insurance Company

Comparison shopping is the best way to get the best EV insurance. Remember, though, it’s not about finding the cheapest rate. Sometimes cheaper insurance isn’t the best option for your needs. Take time to get several quotes from reputable companies and compare their coverages and rates. You should also check out the company through the Better Business Bureau or agencies such as AM Best, Moody’s, or Standard & Poor’s (S&P). 

Shop for EV Insurance the Easy Way at Sandifer Insurance Agency

Automobile insurance can be confusing no matter how much information you compile.  With Sandifer Insurance Agency, you can be sure to get the best coverage at the most affordable rate available today.  

If you are confused about the various options for electric vehicle insurance, reach out to us today.  We have helped customers make the right insurance choices for over 40 years.  One of our agents will be happy to help you make an informed decision.


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